Costco Wholesale Corporation · NASDAQ:COST
Costco Wholesale — Shareholder Meeting (January 2026)
81 slides from Costco Wholesale's shareholder meeting presentation, Jan 15, 2026
Slide 1: Annual Meeting of Shareholders January 15, 2026
Annual Meeting of Shareholders January 15, 2026
Slide 2: Hamilton E. James
Hamilton E. James Joined the Board in 1988; Chairman since 2017 Chairman of Jefferson River Capital Former Executive Vice Chairman and President / Chief Operating Officer of The Blackstone Group
Slide 3: Board Members
Board Members
Slide 4: Susan L. Decker
Susan L. Decker Joined the Board in 2004 CEO and Founder of Raftr Formerly President and CFO of Yahoo Director of Berkshire Hathaway Inc., Chime Financial, Inc., and Vail Resorts, Inc.
Slide 5: Kenneth D. Denman
Kenneth D. Denman Joined the Board in 2017 General Partner at Sway Ventures Formerly President and CEO of Emotient, Inc. Director of Motorola Solutions, Inc.
Slide 6: Helena Buonanno Foulkes
Helena Buonanno Foulkes Joined the Board in 2023 Former CEO and Director of Hudson’s Bay Company Former President of CVS Pharmacy Director of Skillsoft Corp.
Slide 7: Sally Jewell
Sally Jewell Joined the Board in 2020 Secretary of the Interior under President Barack Obama Former Chief Executive Officer and Director of Recreational Equipment, Inc. Board Chair of Symetra Financial Corporation
Slide 8: Jeffrey S. Raikes
Jeffrey S. Raikes Joined the Board in 2008 Co-founder of the Raikes Foundation Former CEO of the Bill & Melinda Gates Foundation Former President of Business Division at Microsoft
Slide 9: John W. Stanton
John W. Stanton Joined the Board in 2015 Chairman and Managing Partner of the Seattle Mariners Chairman of Trilogy Equity Partners and Director of Microsoft Founder and Former Chairman and CEO of Western Wireless Corporation Former Chairman and CEO of T-Mobile USA (formerly VoiceStream Wireless Corp
Slide 10: Mary Agnes (Maggie) Wilderotter
Mary Agnes (Maggie) Wilderotter Joined the Board in 2015 Former Chairman and Chief Executive Officer of Frontier Communications Chairman of the Board of Directors of DocuSign
Slide 11: Ron Vachris
Ron Vachris Joined the Board in 2022 CEO since 2024 and President since 2022
Slide 12: Gina M. Raimondo
Gina M. Raimondo Nominated to the Board in 2025 Secretary of Commerce under President Joe Biden Former Governor of Rhode Island Distinguished Fellow, Council on Foreign Relations
Slide 13: Annual Meeting of Shareholders January 15, 2026
Annual Meeting of Shareholders January 15, 2026
Slide 14: 2026 Annual Shareholders Presentation
2026 Annual Shareholders Presentation
Slide 15: Costco Today
Costco Today •3rd largest global retailer th •12 largest in Fortune 500 •$379 billion market cap* *As of January 2nd, 2026 15
Slide 16: Costco Today
Costco Today •Sales $269.9B – FY’25 •135M sq. ft (147K / whse) •$272M average sales / whse •341K employees worldwide 17
Slide 17: Costco Today: Members
Costco Today (FY’25) Members: – 81M households – 145M cardholders – 92.3% renewal rate (U.S. & CA) – 89.8% renewal rate worldwide – $5.3B in membership fee income (LTM) 18
Slide 18: Costco Today: Warehouses Worldwide
Costco Today (FY’25) 914 Warehouses Worldwide 629 - U.S. 14 - Taiwan 110 - Canada 7 - China 42 - Mexico 5 - Spain 37 - Japan 2 - France 29 - U.K. 2 - Sweden 20 - Korea 1 - Iceland 15 - Australia 1 - New Zealand 19
Slide 19: Keys to Our Success
Keys to Our Success High Sales Productivity: Sales Per Warehouse $272M Sales per Sq Ft. ~$1,850 Comparable Sales 5.9% Inventory Turnover ~13x 20
Slide 20: Fiscal Year Results
Fiscal Year Results (in M’s except for EPS) 2024 2025 Sales $249,625 $269,912 Net Income $7,367 $8,099 Diluted EPS $16.56 $18.21
Slide 21: 1st Quarter
1st Quarter (in M’s except for EPS) 2025 2026 Sales $60,985 $65,978 +8% Net Income $1,798 $2,001 +11% Diluted EPS $4.04 $4.50 22
Slide 22: FY'25 Highlights
FY’25 Highlights ● Sales of $269.9B ● 297 locations > $300M ● 64 locations > $400M ● First >4% pre-tax profit year in company history ● 24 net new warehouse openings ● Continued investment in employee wages ● Digitally-enabled sales were >$27B 23
Slide 23: Expansion
Expansion FY’25 Warehouse Count Beginning: 890 Openings: +24 Ending: 914 Today: 923 24
Slide 24: Opening Day 4/9/25 Ardeer, AU
Opening Day 4/9/25 Ardeer, AU (NRL) 25
Slide 25: Opening Day 6/12/25 Pyeongtaek, KO
Opening Day 6/12/25 Pyeongtaek, KO 26
Slide 26: Opening Day 7/1/25 Malmo, SE
Opening Day 7/1/25 Malmo, SE 27
Slide 27: Opening Day 8/6/25 The Villages, FL
Opening Day 8/6/25 The Villages, FL 28
Slide 28: Opening Day 8/15/25 Allen, TX
Opening Day 8/15/25 Allen, TX 29
Slide 29: Opening Day Mississauga, ON Business Center
Opening Day Mississauga, ON Business Center 10/28/2025 30
Slide 30: Opening Day 11/20/2025 Mulhouse, FR
Opening Day 11/20/2025 Mulhouse, FR 31
Slide 31: Exterior Before & After
eI EAALE Exterior Before & After
Slide 32: Interior Before & After
Interior Before & After
Slide 33: Saturation?
Saturation? ● No! ● Next 5-10 years: ○ 28-32 openings / year ○ Infills / new markets ○ International ○ Business Centers 34
Slide 34: 35
35
Slide 35: Bullion Recap FY'25
Bullion Recap FY’25 +135% Sales Growth in FY’25 36
Slide 36: Ticket Program +24% globally in FY'25
Ticket Program +24% globally in FY’25
Slide 37: Local Vendor Roadshows +49% in FY'25
Local Vendor Roadshows +49% in FY’25
Slide 38: Service Deli
Service Deli 157.4M Rotisserie Chickens sold globally in FY’25
Slide 39: Produce
Produce FY’25 Global Sales +10%
Slide 40: Treasure Hunt Produce Items
Treasure Hunt Produce Items Yellow & Pink Lychee Dragon Fruit Plantain 41
Slide 41: Food Court
Food Court 245.1M hot dog & soda combos sold globally in FY’25
Slide 42: New KS Food Court items
New KS Food Court items Calzone Rotisserie Chicken KS Brownie Sundae Sell Price: $6.99 Chef Salad Sell Price: $2.99 Sell Price: $7.99 43
Slide 43: New Brands
a New Brands NATURE REPUBLIC Bouchard (iret AMOS THE 1 PROFESSIONAL sleep ’,) number AVOCADO Tima weky < SHOKZ =—-_WNDEp, ROXY \Y EST. 1946 FABLETICS Ib miVkis «As WATERFORD Calbee IRELAND 1783
Slide 44: Tariff Mitigation
Tariff Mitigation • Domestic Sourcing • Global volume discounts • Strategic offshore sourcing • Mass out Merchandising • SKU Flexibility • Kirkland Signature 45
Slide 45: Kirkland Signature: FY 2025 sales ~$90B
30 Years! FY 2025 sales: ~$90B ● We control the quality, value for our members ● Ability to build/create a better item ● Innovative packaging, clean ingredients, full traceability ● Ensure global supply for our future ● 20% value to the national brand 46
Slide 46: In-Country Production Successes
In-Country Production Successes Moved to in-country production improving lead time ● Member pricing ● Member pricing reduced by 37% reduced by 27% ● Annual Member ● Lead time from 21 Savings of $7.2M days to 2 days 47
Slide 47: New KS items
New KS items KS Beef Sticks KS Food Storage Bags KS Mini Muffins Sell Price: $12.99 Sell Price: $13.99 Sell Price: $8.99 Value: 32% Value: 30% Value: 35% 48
Slide 48: New KS items
New KS items KS Men’s Pima KS Men’s Short KS Women’s Cotton Tee Sell Price: $14.99 Ankle Pant Sell Price: $12.49 Value: 77% Sell Price: $14.99 Value: 82% Value: 85% 49
Slide 49: New KS items
New KS items KS Dry Facial KS Whey Protein Powder KS “Gentle” Baby Formula Daily Clean Towels Sell Price: $49.99 Sell Price: $29.99 Sell Price: $19.99 Value: 14% Value: 35% 50 Value: 70%
Slide 50: Costco.com Global Websites
Costco.com Global Websites U.S. U.K. Canada Taiwan Mexico Korea Australia Japan China - Micro Site 51
Slide 51: E-Commerce
E-Commerce ● Complement the core warehouse ● Convenience of Big & Bulky ● Grocery Online ● Expanded selection year round ● Delivery + Installation available ● Same Day Delivery ● Expanded “Treasure Hunt” 52
Slide 52: E-commerce
E-commerce Babe Ruth & Lou Gehrig 100g Gold Bar Rand Refinery Pokemon TCG Unova New York Yankees Dual Heavy Hitters 2pk Autographed Official Baseball Sell Price: $98.99 Sell Price: $49,999 53
Slide 53: U.S. E-commerce Enhancements
U.S. E-commerce Enhancements • Personalization - Homepage, Product recommendations, A.I. driven search • Modern product pages and navigation • Warehouse Inventory online - Access to Gas prices, Pharmacy and Tire appointments • Expanded digital membership card - coming soon, expanded payment types •
Slide 54: Costco Logistics FY25
Costco Logistics FY25 +13.67% +17.87% 93% of Costco Big & Bulky items delivered 55
Slide 55: Business Centers
Business Centers 26 U.S. Locations 10 Canada Locations - Walk in / delivery - eCommerce fulfillment – Online Dry Grocery 56
Slide 56: Business Centers
Business Centers Key Categories Office Food Service Corporate Offices Bakeries Law Offices Cafés & Delis Nonprofit Care Facilities Organizations Food Trucks Medical & Dental Restaurants Offices Cafeterias School Offices Convenience Store Concession Stands Volume Sales Distributors Gas Stations Groce
Slide 57: Pharmacy
Pharmacy 72.3M prescriptions filled globally in FY’25 U.S. Growth +13%
Slide 58: Pharmacy: GLP-1 Member Savings
$1,500 $1,000 $500 $o Pharmacy GLP-1 Member Savings $1,339 December 2024 l™ Member Copay for Wegovy $499 September 2025 $349 December 2025 — \ *Price per month 59
Slide 59: Gasoline
Gasoline 8.2B Gallons of Fuel Sold Globally in FY’25
Slide 60: Gasoline
Gasoline ● $198M Member value to lowest competitor in FY’25 ● 27 New gas stations ● 24 Gas station expansions ● Expanded hours ○ Mon - Fri: 6AM to 10PM ○ Saturday: 6AM to 8:30PM ○ Sunday: 6AM to 7:30PM 61
Slide 61: Costco Travel
COSTCO Costco Travel
Slide 62: Costco Travel Member Spotlight
Costco Travel Member Spotlight 150 night World Cruise on Regent Cruise Line Included: ● 2 Adults ● Concierge Suite ● $550 On-Board Credit ● $100 Executive Member On-Board Credit ● Example of Call ○ Rangiroa/Polynesia ○ Bay of Islands/New Zealand ○ Mooloolaba ○ Ho Chi Minh City Total Spent : $218,528
Slide 63: Executive Membership Upgrades
Executive Membership Upgrades ● Exclusive Shopping Hours (Effective June 30, 2025) ● $10 Monthly Instacart Credit ($120 value annually) ● Auto & Home Insurance: Added benefits ● Pet Insurance: Lost Pet Recovery ● Costco Auto Program: Up to $250 + value on select promos ● Travel Extras: Additional va
Slide 64: BB ’ A ’
1 BB ’ A ’ ef iB For an Additional Selection & Delivery of Furniture & Mattresses
Slide 65: New Technology
Front Door Scanners Mobile App - Digital Wallet Pre-Scanning at Checkout Global Membership System Pay ahead Pharmacy Med Flex Cards (Jan 2026) 66
Slide 66: Pharmacy Technology Improvements
Pharmacy Technology Improvements Lockers Pay Ahead MedFlex Cards ● Lockers - Convenient after hours pick-up ● Pay Ahead - Save time at pharmacy counter ● Medflex Cards - Expanding access to members 67
Slide 67: Our People
Our People ● Good jobs / wages / benefits ● Careers - available to all ● Promote from within ● Everyone is included ● This is “good business” 68
Slide 68: Fantastic Employees
Fantastic Employees • 341,000 employees worldwide – 94% benefits eligible in the U.S. (97% enrolled) • Highly compensated – ~$32 U.S. average hourly wage • Low turnover – 9% in the U.S. after 1 year 69
Slide 69: Warehouse Manager Profile
Warehouse Manager Profile 923 Managers started as: Warehouse Manager 1% Asst. Warehouse Manager 2% Other Manager 10% Hourly staff ~87% 70
Slide 70: Costco's 2025 Global Graduates
COSTCO’S 2025 GLOBAL GRADUATES UNITED KINGDOM CANADA 66 —\ y hbo = 10 ace oy N : —— ~ PUERTO RICO aE = Aw: Ww 3 2 SOUTH “ H y ? KOREA 4 % : Ny v 5 5 % : ye TAIWAN “ ‘ ee ‘ee ; 8 € c —— _ a N, on. ce @ S AUSTRALIA “Qin 6 ¥ 776 Total Graduates _
Slide 71: Charitable Contributions
Charitable Contributions Target is 1% of prior year’s pretax profit FY’21 $52M FY’22 $65M FY’23 $75M FY’24 $84M FY’25 $97M 72
Slide 72: Quality, People, Facilities, Merchandise, Management Team
Quality ● People ● Facilities ● Merchandise ● Management Team Never complacent! 73
Slide 73: Committed to doing the right thing
At Costco, we are committed to doing the right thing by taking care of the people we work with, the communities we serve and the environment we all depend on. We take a holistic approach to operating sustainably across our business. ‘Gunne” Taking Care of People Increasing Our Water Efficiency Sourc
Slide 74: Sustainability Commitment
Sustainability Commitment Pillars: – People: How we take care of our employees, suppliers, and communities – Environment: Our sustainability efforts across Operations and Merchandising: ■ Climate & Energy (Emissions, Transp. & Logistics) ■ Biodiversity & Nature (Forests, Animals, Fisheries) ■ Resour
Slide 75: Financial Position (M's)
Financial Position (M’s) Q1, FY’26 Cash, Equiv, & Short-Term Inv. $17,183 Property & Equipment (net) $32,616 Long-Term Debt $5,666 Stockholders’ Equity $30,303 76
Slide 76: Dividends
Dividends • Initiated May 2004 at $0.40 per year • Currently at $5.20 per year • Compound Annual Growth Rate 13% per year • >$2.3B annually • Five special dividends in the last 13 years • ~$19.5B to date 77
Slide 77: Stock Repurchase
Stock Repurchase as of FY’25 End • Program inception – Fiscal Year 2000 • $12.5B total expenditure • 139.9 million shares retired • $89.47 average cost per share • $903M in repurchases in FY’25 78
Slide 78: Company Annual Growth
Company Annual Growth (Dec ’85 through FY’25) Net Sales 11.9% Net Income 13.2% Stock Price 17.6% S & P 500 9.3% 79
Slide 79: Costco Code of Ethics
Costco Code of Ethics • Obey the law • Take care of our members • Take care of our employees • Respect our suppliers • Reward our shareholders 80
Slide 80: Our Future
Our Future • Maintain core values and culture • Deliver great quality goods and services to our members worldwide • Continue to innovate • Warehouse expansion • Digital growth 81
Slide 81: Thank you!
Thank you! 82
Costco Wholesale — Shareholder Meeting (January 2026) on 6ix