Consumer Staples Merchandise Retail

Target Corporation is raising capital investments to strengthen its store network, supply chain and technology capabilities, expecting capital expenditures of approximately $5 billion in fiscal 2026. Through the first half, the retailer deployed about $2.4 billion in capital expenditures, up nearly 30% from a year ago, with spending directed toward new stores, full-store remodels and technology upgrades. Target opened 17 new stores in the second quarter, bringing the first-half total to 24, and had more than 100 full-store remodels underway, moving toward roughly 130 for the year, as stores handle more than 95% of the company's sales. The company is modernizing its technology foundation and has partnered with OpenAI, Google Gemini and other leading platforms as it explores agentic commerce, saying digital traffic sourced from external AI platforms is growing more than 3.5 times the industry rate versus a year ago. Target is also investing in Proxima, a digital twin of its middle-mile inventory positioning system, and said it fulfilled nearly 30% more same-day and next-day units in the second quarter than a year earlier. Separately, Walmart raised its fiscal 2027 capital expenditure outlook to about 4% of net sales from roughly 3.5% earlier, while Dollar General expects fiscal 2026 capital expenditures of $1.4-$1.5 billion and plans about 4,730 real-estate projects during the year.

Costco Wholesale Corporation lowered prices across several everyday Kirkland Signature items in the fourth quarter of fiscal 2026, reinforcing its private label as a member-value lever. Management said Kirkland Signature typically offers savings of at least 15%-20% versus national-brand equivalents while maintaining equal or better quality. KS Walnuts were reduced to $9.99 from $13.79, Colombian Whole Bean Coffee to $19.99 from $21.99, Dry Facial Towels to $18.99 from $19.99 and Coarse Black Pepper to $5.99 from $6.99. The value push was supported by tariff refunds: Costco received $184 million in the quarter, including $174 million in refunds and $10 million in interest, and management said it intends to reinvest the majority of additional tariff-refund dollars to enhance member value. The Zacks Consensus Estimate for Costco's current fiscal-year sales and earnings per share implies year-over-year growth of 8.3% and 11.8%, respectively, and the estimate for current fiscal-year earnings has increased by 36 cents to $22.87 per share over the past 30 days.

Tisco Securities released an analysis of retail sector stocks, noting that same-store sales growth, or SSSG, improved by 0.9% in September, recovering from a contraction of 1.5% in July and 0.4% in August, driven by stockpiling of goods related to the flood situation as well as a recovery in fundamentals. It expects SSSG at 7-Eleven under CPALL to come in at positive 3%, while Makro under CPAXT is seen at positive 1.5% and Big C under BJC at positive 2%. Overall, SSSG in the third quarter of 2026 is expected to decline 0.3% under pressure from the high base effect of previous government economic stimulus measures, but strong operating results in September should partially offset the weakness in July and August. Tisco's research team recommends BJC, expecting September SSSG to be positive at 2% on the benefit of flood-related stockpiling and store improvements, as well as the broad-based recovery that began to emerge in August. BJC's stores showed significantly better development across all product categories, and SSSG is expected to accelerate again once the impact of government stimulus spending fades and customer numbers return to normal in December 2026. CPALL, meanwhile, is expected to report September SSSG in positive low- to mid-single-digit territory, improving from the previous two months, with 7-Eleven benefiting from consumer stockpiling in late September amid heavy rain and flood risk. It also received support from extended alcohol sales hours and an increase in Chinese tourist numbers, while the impact of branch closures due to flooding remained limited.

Costco Wholesale Corporation closed fiscal 2026 with total revenue of $276.4 billion, up 8.1% year over year, as the warehouse retailer reported net sales of $93.87 billion, up 11.2%, and net income of $2.998 billion in its September 24 earnings call. Membership remains the engine of the business, with 84.1 million paid members, including 42.3 million Executive tier members, a group that grew 9.4% and pushed that tier's share of the base to a new high, while renewal rates rose to 92.3% in the US and Canada and 89.8% worldwide. Membership fee income climbed 7.3% to $1.849 billion, and management plans 33 openings in fiscal 2027 as it works toward 30 net new warehouses a year, with digitally enabled sales topping $33 billion on growth above 20%. The quarter was not spotless, as reported gross margin slipped to 11.02% from 11.13% a year earlier and the LIFO charge jumped to $152 million from $43 million, tied to pricier memory in electronics and Middle East conflict costs for gas, motor oil, and resins, while tariff refunds added $0.15 per share and the $184 million received covers only about a third of the expected recovery. With the stock trading near historical valuation highs at a forward P/E of 40.32 and hedge fund ownership slipping to 104 funds from 107, the debate now centers on whether membership loyalty and the expansion plan can keep earnings growing into a premium that leaves little room for a stumble.

Major convenience store chains are stepping up their apparel offerings, including clothing and fashion accessories. Seven-Eleven Japan has teamed up with major apparel company Adastria to launch 28 Seven-exclusive items nationwide on September 25, including T-shirts, scrunchies, and seasonal scarves from Nico and and Lowrys Farm, both popular among young women. According to Seven-Eleven, about 40 percent of last fiscal year's customers were aged 50 or older, while those in their 20s or younger accounted for only about 17 percent. Junko Watanabe of the merchandise division stressed that acquiring younger customers is essential for continued long-term growth, and indicated a plan to double apparel sales by fiscal 2025. FamilyMart, which moved early to strengthen its clothing lineup, began nationwide sales in 2021 of its own brand Convenience Wear, developed with a famous designer. Its flagship store, which opened in Tokyo in July this year, carries about 300 items and includes fitting rooms, with a target of 30 billion yen in sales for fiscal 2026, 1.5 times the previous fiscal year. Lawson also expanded the range and floor space for Muji clothing from April, and on September 29 launched items including gloves in collaboration with the lifestyle brand Bruno. According to the Japan Franchise Association, customer traffic at existing convenience stores has fallen below the same month a year earlier for 14 consecutive months, and attention is focused on whether apparel can create destination-purchase demand and lift sales per store.

Walmart, Target and Dollar General each booked tariff refunds as a second-quarter earnings tailwind, using the proceeds to fund price investments and customer-focused initiatives. Walmart received substantially all of its eligible tariff refunds, totaling approximately $2.9 billion, or about 0.5% of annual U.S. net sales, helping lift its second-quarter consolidated gross profit rate 96 basis points to 25.4% and contributing an approximately 750-basis-point benefit to operating income growth. Target recognized $994 million in International Emergency Economic Powers Act tariff refunds as a reduction in the cost of sales, a benefit of 3.7 percentage points to its gross margin of 33.7% and $1.65 to adjusted earnings per share, and it expects fiscal 2026 operating margin to include about 90 basis points of benefit from the second-quarter refunds. Dollar General said gross profit as a percentage of sales rose 127 basis points year over year to 32.6%, with tariff refunds contributing approximately 81 basis points after related reinvestments, while operating profit rose 29.2% to $769.2 million and adjusted earnings per share increased 33% to $2.48, including an estimated 25 cents from refunds. Dollar General received the majority of expected tariff refunds during the quarter and does not expect a material impact from refunds after reinvestments in the second half of fiscal 2026.

Costco Wholesale Corporation's ancillary businesses delivered strong results in the fourth quarter of fiscal 2026, with gross margin for ancillary and other businesses rising 23 basis points year over year and 32 basis points excluding gasoline inflation, while comparable sales in ancillary operations surged in the high 20s percentage range on strength in gasoline, pharmacy and travel. Costco's gasoline business reached record volumes in fiscal 2026 as U.S. member household penetration hit an all-time high, saving members an estimated $3.2 billion at the pump versus regional market averages, and the company expanded 26 high-volume U.S. gas stations to support throughput. The pharmacy department posted nearly 20% sales growth, aided by digital options such as Rx Mobile Pay Ahead and Pickup Lockers plus specialized GLP-1 and fertility programs, yielding double-digit script growth that helped offset Medicare Maximum Fair Price adjustments, and Costco announced a partnership with SCAN Health Systems to develop Medicare Advantage benefits. Costco Travel achieved double-digit growth across vacation packages, cruises and car rentals, with cruise bookings up 16% and more than 750,000 members sent on cruises during the fiscal year. The Zacks Consensus Estimate for Costco's current fiscal-year sales and earnings per share implies year-over-year growth of 8.3% and 11.8%, respectively, and over the past seven days the current fiscal-year earnings estimate rose 36 cents to $22.87 per share while the next fiscal-year estimate rose 44 cents to $24.94 per share.

Alphabet rose 2% in premarket trading after unveiling Gemini 4 Argon, its most advanced artificial intelligence model yet, which the company said delivers improvements in cybersecurity, coding and complex professional work. Accenture soared 17% after fiscal fourth-quarter revenue of $18.68 billion beat its own guidance of $17.75 billion to $18.4 billion and the FactSet consensus estimate of $18.3 billion, with earnings of $3.29 per share also topping expectations. Rocket Lab climbed 4.5% after signing a multiyear launch agreement for 20 new Electron missions with Tokyo-based company Synspective, which Rocket Lab called the largest commercial launch contract for Electron to date. Micron reported better-than-expected fiscal fourth-quarter results, earning an adjusted $33.42 per share on revenue of $54.23 billion versus analyst estimates of $31.61 per share on revenue of $51.07 billion, though the stock fell slightly while the Roundhill Memory ETF gained more than 1% and the VanEck Semiconductor ETF advanced 1%. McCormick rose nearly 5% on third-quarter adjusted earnings of 86 cents per share and revenue of $2.02 billion, both above consensus, while Dollar Tree added 1.3% on a Loop Capital upgrade to buy from hold and Nu Holdings gained nearly 6% after denying it is pursuing a transaction with U.K. digital bank Monzo.

Pan Pacific International Holdings, which operates the discount chain Don Quijote, announced on the 1st that it has signed a business transfer agreement with major toy retailer Toys R Us Japan. Toys R Us Japan filed for application of the Civil Rehabilitation Act with the Tokyo District Court the same day, and according to Teikoku Databank, its total liabilities stand at approximately 13.2 billion yen. Pan Pacific International Holdings plans to take over all stores by the end of this month after obtaining court approval, inheriting the brand and main debts while continuing operations, and aims to return to profitability quickly through strengthened sales efforts. Toys R Us Japan has operated more than 150 toy stores nationwide under the Toys R Us name and others, but in recent years it had continued to post losses against the backdrop of a declining birthrate. Pan Pacific International Holdings is also involved in the toy business and judged that combining the two companies' shares would allow it to establish an overwhelming position in Japan's toy market. President Hiroshi Mori, at a press conference on the 1st, stressed that the addition of Toys R Us Japan's broad customer touchpoints will contribute to the group's sustainable growth.

Pan Pacific International Holdings, the company that operates the discount chain Don Quijote, announced on the first of the month that it has signed a business transfer agreement with major toy retailer Toys R Us Japan. Toys R Us Japan filed for application of the Civil Rehabilitation Act with the Tokyo District Court on the same date, and according to Teikoku Databank, its total liabilities are approximately 13.2 billion yen. PPIH plans to take over all stores by the end of this month after obtaining court approval, inheriting the brand and major debts to continue operations, and aims to return to profitability quickly through strengthened sales efforts. Toys R Us Japan has operated more than 150 toy stores nationwide under the Toys R Us name and others, but in recent years it had continued to post losses against the backdrop of a declining birthrate. PPIH President Hideki Mori emphasized at a press conference on the first, saying, "The addition of Toys R Us Japan's broad customer touchpoints will contribute to the group's sustainable growth."

Pan Pacific International Holdings, the operator of Don Quijote, announced on the 1st that it will acquire major toy retailer Toys R Us Japan. The acquisition price was not disclosed, and the deal is expected to be completed within the month. According to PPIH, Toys R Us Japan filed for the start of civil rehabilitation proceedings with the Tokyo District Court on the 1st. PPIH will take over all of the roughly 150 stores in Japan, and President Hideki Moriya, speaking at a press conference in Tokyo, said, "We are considering opening stores inside large Don Quijote locations and those of our group supermarket Uny." The company said it will proceed with discussions toward continuing to use the Toys R Us name, and Senior Executive Officer Kenji Moriya said, "In addition to the existing offerings for children, there is ample room for growth by strengthening our provision of toys for adults." Toys R Us opened its first store in Japan in Ibaraki Prefecture in 1991, and while the U.S. Toys R Us went bankrupt in 2017, Toys R Us Japan continued its business, though in recent years it had continued to post losses amid factors such as the declining birthrate.

Life Corporation announced on September 8 that it will launch a tender offer for Albis, a food supermarket chain based in the Hokuriku region, and make it a consolidated subsidiary. This is Life's first acquisition of a rival supermarket, with the purchase price reaching up to 26.3 billion yen. Life's main trading areas are the Tokyo metropolitan area and the Kinki region, while Albis is based mainly in Toyama Prefecture and the Hokuriku region, and has already expanded into Aichi and Gifu Prefectures, so the two companies' store networks barely overlap. The acquisition would bring Life and Albis's combined sales to roughly 980 billion yen on a simple sum basis, making it a deal that symbolizes the race among food supermarkets to reach the 1 trillion yen mark. Conventional distribution realignment has been based on the dominant strategy of concentrating store openings, but a movement is now beginning to leapfrog trading areas and bring in companies that are strong in those regions.

Costco Wholesale Corporation reported fourth-quarter adjusted earnings of $6.60 per share, beating the Zacks Consensus Estimate of $6.48 and rising 12.4% year over year, while total revenues climbed 11.1% to $95,723 million and topped the consensus estimate of $94,820 million. Reported earnings came in at $6.75 per share, including a 15-cent nonrecurring benefit related to tariff refunds. Adjusted comparable sales, excluding gasoline price and foreign exchange impacts, increased 6.7%, membership fee income rose 7.3% to $1,850 million, worldwide traffic grew 3.3% and the average transaction value increased 5.9%. The company ended the quarter with 84.1 million paid members, up 3.8%, and 150.4 million cardholders, up 3.6%, while digitally enabled comparable sales jumped 19.5%. During fiscal 2026, Costco opened 28 warehouses, including three relocations, for 25 net new buildings and a global count of 939, and management plans another 33 openings in fiscal 2027, including five relocations, against a long-term pace of roughly 30 net new warehouses annually. Over the past seven days, the Zacks Consensus Estimate for the current fiscal year moved up 30 cents to $22.80 and the next fiscal year rose 44 cents to $24.90, implying growth of 11.5% and 9.2%, respectively, while Costco carries a Zacks Rank #3 (Hold).

HSBC analyst Joe Thomas upgraded Target to Buy and raised his price target on the stock to $190 from $125 per share, citing a traffic-driven recovery. In a note Wednesday, Thomas said Target's second-quarter results support the view that a turnaround is gaining momentum, with comparable sales rising 3.8%, including a 2.7% rise in store-originated sales, while underlying profits and EPS came in around 5% ahead of consensus. He said growth was driven primarily by footfall rather than higher ticket values, indicating Target is rebuilding customer traffic without material cannibalisation of its store base. HSBC sees potential for earnings forecasts to be exceeded in the short and medium term, noting year-to-date two-year comparable sales growth of 1.7% and that its estimates require only 0.5% two-year growth in the second half to deliver full-year assumptions. The bank's valuation is based on an 18x multiple applied to its revised FY27e EPS estimate of $10.61, in line with Target's five-year average historical PE multiple.

Walmart is testing AI-powered shopping in India through its Flipkart business as part of a new Google pilot that lets Indian shoppers buy from Flipkart using Gemini and AI Mode. The test allows Flipkart products to be discovered and purchased directly inside Google's AI experiences for users in India, targeting online buyers as the festive shopping season approaches, a period when e-commerce activity typically climbs. The pilot plugs into Walmart's omni channel reach and AI adoption push, with the company betting that e-commerce, rapid delivery, and AI tools can tighten customer retention and support more efficient operations across markets such as India, Mexico, and China. Execution in emerging markets remains complex, and profitability outside the U.S. still trails the group average. For the trial to matter for investors, key tells include how quickly Google and Flipkart expand the product range and user access after the planned broader rollout in October, and whether Walmart starts calling out India or Flipkart AI integrations separately in future earnings commentary or KPI disclosures.

Target announced a new round of price reductions across nearly 2K apparel and home products, building on more than 10K price cuts over the past year. The retailer focused the cuts on categories where consumers remain value-conscious, a move expected to strengthen its value proposition heading into the holiday season. Jefferies analyst Corey Tarlowe said the continued price investments are another clear sign management is making the right decisions for the customer and the business, noting that lower prices help drive value perception and volume gains while enhanced newness provides additional traffic drivers. Tarlowe added that Target has meaningful flexibility from tariff refunds to further fund value initiatives, and that management could reinvest a meaningful portion of that benefit back into pricing rather than letting it flow entirely to profits, which he sees as a path to incremental traffic growth, additional market share gains, and stronger customer loyalty. Shares of Target are up more than 60% on a year-to-date basis.

Dollar General Corporation reported that tariff refunds helped drive second-quarter fiscal 2026 gross margin up 127 basis points year over year to 32.6%, with the refunds after related reinvestments contributing approximately 81 basis points to that expansion. Operating profit rose 29.2% to $769.2 million and operating margin expanded 126 basis points to 6.8%, with tariff refunds adding roughly 66 basis points, while earnings per share climbed 33% to $2.48, including an estimated 25 cents benefit from the refunds. The company said it received the majority of its expected tariff refunds in the quarter and does not anticipate a material impact from them in the second half of fiscal 2026, and it directed a substantial portion toward targeted promotions, lower everyday prices and customer-facing initiatives. For comparison, Walmart said tariff refunds lifted second-quarter fiscal 2027 operating income by an approximately 750-basis-point net benefit after price investments, and Target recognized $994 million of pretax tariff refunds that added $752 million to net earnings and $1.65 to earnings per share, contributing 3.7 percentage points to both gross margin and operating margin. Dollar General shares have advanced 8% over the past three months against the industry's 1.7% decline, and the Zacks Consensus Estimate for its earnings per share for the current and next fiscal year has increased by 50 cents and 32 cents to $7.89 and $8.39, respectively, over the past 30 days.

Costco Wholesale Corporation reported U.S. comparable sales growth of 10.7% year over year in the fourth quarter of fiscal 2026, outpacing its overall comparable sales growth of 9.4%. Adjusted U.S. comparable sales, excluding gasoline prices and foreign exchange, rose 7.2%, with U.S. comparable traffic up 3.2% and the average ticket up 7.3%; on an adjusted basis, traffic growth held at 3.2% while adjusted ticket growth was 3.9%. Management said member spending remained resilient, with adjusted comparable sales excluding gas and foreign exchange consistently running in the 6%-7% range, and named nonfood as the strongest-performing category. The company also implemented price reductions on select everyday items as part of efforts to return value to members following tariff refunds. Separately, Walmart U.S. comp sales rose 2.6% in the second quarter of fiscal 2027 on a 1.5% increase in transactions and a 1.1% rise in average ticket, with U.S. e-commerce sales up 24%, while Target posted comparable sales growth of 3.8% in the second quarter of fiscal 2026 on a 3.6% increase in comparable traffic and an 8.7% rise in digital comparable sales.

Costco Wholesale Corporation reported net sales of $93,873 million for the fourth quarter of fiscal 2026, up 11.2% year over year, with total company comparable sales expanding 9.4% and adjusted comparable sales up 6.7%. Worldwide traffic rose 3.3% during the 16-week quarter ended Aug. 30, 2026, while the average transaction size climbed 5.9% globally, or 3.3% on an adjusted basis. In the United States, reported comparable sales rose 10.7% on a 7.3% ticket gain and a 3.2% traffic increase, with adjusted U.S. comparable sales up 7.2%; Canada posted adjusted comparable sales growth of 4.6% and other international markets 6.2%. Digitally-enabled comparable sales jumped 19.5% on a reported basis and 19.8% adjusted for foreign exchange. The Zacks Consensus Estimate for Costco's current fiscal-year sales and earnings per share implies year-over-year growth of 7.9% and 10.4%, respectively, and the current-year earnings estimate has risen 7 cents to $22.57 per share over the past seven days.

Costco reported third quarter revenue of $95.72 billion, beating analyst estimates of $94.85 billion with 11.1% year-on-year growth, while adjusted EPS came in at $6.60 against estimates of $6.52. Same-store sales rose 9.4% year on year, up from 5.7% in the same quarter last year, and the company ended the quarter with 939 locations, up from 914 a year earlier. On the earnings call, CFO Gary Millerchip said executive member penetration and digital sign-ups drove higher renewal rates and spending per member, and that current membership growth rates are expected to persist, with international expansion as a possible catalyst. CEO Ron Vachris said gas, pharmacy, and travel led the way, all growing faster than the overall growth rate, and described ongoing expansion of the Kirkland Signature brand as a pricing lever against commodity inflation. Costco currently trades at $922.26, up from $897.41 just before the earnings, with a market capitalization of $409.1 billion.

Costco reported calendar third-quarter 2026 results that beat Wall Street's revenue expectations, with sales up 11.1% year on year to $95.72 billion against analyst estimates of $94.85 billion. Non-GAAP profit came in at $6.60 per share, 1.2% above the consensus estimate of $6.52, while same-store sales rose 9.4% year on year compared with 5.7% a year earlier. The membership-only retailer ended the quarter with 939 locations, up from 914 a year earlier, and a market capitalization of $409.1 billion. Chief Executive Ron Vachris said gas, pharmacy, and travel led the way, all growing faster than the overall growth rate, and Chief Financial Officer Gary Millerchip pointed to record executive membership penetration and digital sign-ups lifting renewal rates and spending per member. Management said it sees a path over the next 5 to 10 years to opening 30 new warehouses a year, and it is investing in digital capabilities and delivery partnerships with Uber Eats and DoorDash to attract younger members.

Costco Wholesale reported fourth-quarter sales of US$93,873 million and full-year sales of US$297,247 million in late September 2026, with both revenue and net income rising compared with the prior year. The results underscored the continued strength of Costco's fee-based membership model, which helped lift earnings even as operating costs remained under pressure. The company also launched nationwide on the DoorDash Marketplace, broadening same-day delivery access to all U.S. warehouses as part of its digital and omnichannel push. Costco's narrative projects US$363.2 billion in revenue and US$11.6 billion in earnings by 2029, requiring 7.4% yearly revenue growth and a US$2.8 billion earnings increase from US$8.8 billion today. Some of the most optimistic analysts were already projecting revenue near US$382 billion and earnings around US$12.6 billion by 2029, far more upbeat than consensus.

Walmart Inc. reported roughly 40% growth in U.S. store-fulfilled delivery in its fiscal second-quarter results released August 20. In a May 28 announcement, the company outlined delivery in 30 minutes or less across 33 U.S. markets, with a $10 fee for Walmart+ members, a service targeting immediate needs such as forgotten groceries. U.S. e-commerce sales rose 24% in the quarter, and management cited improved e-commerce economics among the drivers of segment operating income growth. The open question for investors is whether delivery fees and merchandise profit cover picking and delivery costs when shoppers buy only a few items, since a small order still requires someone to select, prepare, and deliver it. The $10 fee gives Walmart a direct revenue source beyond merchandise, but waiving or discounting it could encourage demand while weakening the revenue available to pay for fulfillment.

Costco Wholesale Corporation reported fiscal 2026 membership-fee revenue of $5.907 billion, up from $5.323 billion, an increase of $584 million or approximately 11%. The company ended the year with 84.1 million paid memberships, up 3.8%, including 42.3 million Executive memberships, which accounted for 75.6% of fourth-quarter sales; renewal rates were 92.3% in the United States and Canada and 89.8% worldwide. Annual net sales rose 10.1% to $297.2 billion, while operating income increased approximately 12.5% to $11.685 billion, and fourth-quarter earnings benefited by $0.15 per diluted share from International Emergency Economic Powers Act tariff refunds after partial reinvestment in member value. Costco's Executive program generally offers a 2% reward on qualifying purchases subject to an annual limit, and rewards reduce sales after allowing for estimated nonredemptions, a reduction that totaled $3.007 billion in fiscal 2025. Accrued member rewards stood at $3.037 billion at fiscal year-end versus $2.677 billion a year earlier, but the results release does not disclose the fiscal 2026 rewards reduction, so investors cannot directly compare incremental fee revenue with incremental reward costs.

RBC Capital reaffirmed a Sector Perform rating and a $1,000 price target on Costco Wholesale Corporation while raising its earnings forecasts, according to a research note reported on September 25. The firm lifted its FY26 EPS estimate by $0.21 to $20.76 and its FY27 estimate by $0.10 to $22.86, incorporating expected IEEPA tariff refunds in early 2027 along with updated margin, store expansion and capital expenditure assumptions. Costco reported FY26 total revenue of $303.15 billion, including $5.91 billion in recurring membership fees, an 11% year-over-year increase, and net income of $9.23 billion. Operating cash flow rose to $15.83 billion from $13.34 billion, funding $6.44 billion in capital expenditures, while cash and cash equivalents climbed to $20.21 billion from $14.16 billion and non-current debt fell to $3.91 billion from $5.71 billion. RBC flagged the stock's premium valuation, trading near 40x to 45x forward earnings, as its core bottleneck, and noted that Q4 net income of $2.998 billion included a non-recurring $0.15 EPS benefit from tariff refunds.

Costco Wholesale Corporation reported fourth-quarter results on September 24 that beat expectations, with net sales up 11.2% to $93.9 billion and earnings of $6.75 a share, and the stock rose 2.93% to close at $922.77. Comparable sales rose 9.4% companywide and 10.7% in the United States, while digitally enabled sales grew 19.5%, the fastest-moving part of the business. The sixteen-week quarter closed a fiscal year in which net sales reached $297.2 billion, and Costco finished the year operating 939 warehouses worldwide. Earnings included a non-recurring benefit of $0.15 a share from tariff refunds, so excluding that the quarter was still ahead of expectations but by less than the headline suggests. At least eight research firms lowered their price targets the following day, led by Truist, which cut its target to $955 from $1,011 while keeping a Hold rating, and Bernstein, which trimmed its target by a single dollar to $1,143 from $1,144 while keeping an Outperform rating; JPMorgan cut to $1,015 from $1,100 and stayed Overweight. The cuts centered on slowing membership growth rather than the quarter itself, and the day was not one-directional, as HSBC upgraded the stock to Buy and DA Davidson raised its target to $1,040. Costco earned $20.76 a share across the fiscal year, leaving the stock trading near 44 times what the business actually produced, with the average Wall Street target still above $1,045.

Costco Wholesale Corporation received $184 million related to International Emergency Economic Powers Act tariffs in the fourth quarter of fiscal 2026, comprising $174 million of refunds and $10 million of interest, which management said represented a little more than one-third of the total refunds expected. The tariff refunds, net of partial reinvestment in member value, contributed a nonrecurring benefit of 15 cents per share in the quarter; excluding that benefit, net income and earnings per share rose 12.3% and 12.4%, respectively, while refunds and related reinvestment added nine basis points to gross margin. Costco intends to reinvest the majority of future refunds in increased member value, primarily through lower prices, after directing fourth-quarter investments into produce, meat, beverages, home furnishings and hardware. Walmart Inc. said tariff refunds lifted gross profit and operating income in the second quarter of fiscal 2027, with operating income receiving an approximately 750-basis-point net benefit after price investments, while Target Corporation recognized $994 million of pretax tariff refunds in its second-quarter fiscal 2026, adding $752 million to net earnings and $1.65 to earnings per share and contributing 3.7 percentage points to both gross margin and operating margin. Costco's forward 12-month price-to-earnings ratio stands at 40.59 versus the industry's 27.39, and the Zacks Consensus Estimate for current fiscal-year earnings has risen 7 cents to $22.57 per share, with next fiscal year up 25 cents to $24.71 per share.

Walmart Inc. reported that global membership fee revenues rose 17% year over year in the second quarter of fiscal 2027, reaching an all-time high, as membership becomes a more meaningful contributor to its overall business. Walmart+ posted double-digit growth in the United States on record second-quarter net additions and its strongest first-half membership growth since launch, while Walmart U.S. membership and other income rose 15.6%. Sam's Club U.S. membership fee revenues increased nearly 6% on steady member-account growth and higher Plus penetration, international membership fee revenues climbed 28%, Sam's Club China reached record member counts, and Walmart launched Walmart+ in Canada during the quarter. Walmart noted that members spend approximately four times more than non-members, and membership revenues contributed to improving Walmart U.S. e-commerce economics alongside advertising, delivery-network density, fee-based expedited delivery and automation. The company, which competes with Costco Wholesale Corporation and Target Corporation, carries a Zacks Rank #3 (Hold), and the Zacks Consensus Estimate implies current fiscal-year sales and earnings per share growth of 5.3% and 8.7%, respectively.

Costco Wholesale Corporation is drawing heavy investor attention, with the Zacks Consensus Estimate for current-quarter earnings now at $4.86 per share, up 12% from the year-ago quarter and 1% higher over the last 30 days. For the current fiscal year, the consensus earnings estimate of $22.57 points to a 10.4% increase from the prior year, while the next fiscal year's estimate of $24.71 indicates a 9.5% gain. Revenue is also projected to grow, with the current-quarter consensus sales estimate of $73.33 billion marking a 9% year-over-year change, and current and next fiscal year estimates of $327.15 billion and $350.18 billion pointing to increases of 7.9% and 7%, respectively. In its last reported quarter, Costco posted revenues of $95.72 billion, up 11.1% year over year, and earnings per share of $6.6 versus $5.87 a year earlier, beating the Zacks Consensus Estimate on both revenue and EPS. Despite the estimate revisions, Costco carries a Zacks Rank #3 (Hold) and a Zacks Value Style Score of D, indicating it trades at a premium to its peers.

Walmart opened its latest Neighborhood Market store last week in Mesquite, Texas, continuing the expansion of its smaller, grocery-focused store chain. Over the past five years, the retail giant has invested more than $2.5B in Texas stores and plans to remodel 72 locations across the state in 2026. Walmart Neighborhood Market began with three stores in Arkansas in 1998, including one in the company's home city of Bentonville, and the chain now stands at a reported tally of 674 stores in the U.S. This year the company is testing remodels at several Neighborhood Markets, with expanded deli and hot-bar offerings, improved lighting, pharmacy delivery, and better space for fulfilling online grocery orders. Looking ahead, Walmart expects approximately 20 new store openings across its U.S. formats in 2026 and early 2027, part of a broader commitment made in 2024 to open or convert more than 150 locations over five years.

Costco Wholesale Corp. reported fourth-quarter fiscal 2026 adjusted earnings of $6.60 per share, beating the Zacks Consensus Estimate of $6.48 per share, sending its shares up 2.9%. Shares of People Inc. jumped 11.3% following a Wall Street Journal report that MGM Resorts International is considering acquiring the company. Akamai Technologies Inc. gained 3.2% after entering a seven-year power deal with AI giant Anthropic worth $11.6 billion. Scholastic Corp. tumbled 7.1% after posting a first-quarter fiscal 2027 adjusted loss of $3.63 per share, wider than the Zacks Consensus Estimate of a loss of $3.42 per share.