Costco Wholesale Corporation (COST) SEC Filings & Earnings Calls

California concentration risk

“Within the U.S., we are highly dependent on our California operations, which comprised 26% of U.S. net sales in 2026.” · word for word

Cybersecurity risk

“The potential impacts of a cybersecurity attack include reputational damage, litigation, government enforcement actions, penalties, disruption to systems and operations, unauthorized release of confidential or otherwise protected information, corruption of data, diminution in the value of our investment in IT systems, and increased cybersecurity protection a”

Tariff risk

“Additionally, trade-related actions in various countries have adversely affected the costs of some of our merchandise.” · word for word

Inflation risk

“Inflationary factors, such as increases in merchandise costs, may adversely affect our business, financial condition and results of operations.” · word for word

Tariff exposure on merchandise costs

“Higher tariffs are more likely to adversely impact rather than improve our results.” · word for word

Gasoline price volatility

“Higher gasoline prices positively impacted net sales by $1,367, or 221 basis points ... A decline in gasoline prices has the inverse effect.” · word for word

Litigation risk from multiple class actions

“four class actions were filed against the Company seeking a refund of tariffs paid by the Company under the International Emergency Economic Powers Act (“IEEPA”) that were passed on to members through higher prices.” · word for word

Geopolitical and tariff risks, inflation/deflation, and consumer spending patterns could impact future performance

“Forward-looking statements mention domestic and international economic conditions, exchange rates, inflation or deflation, geopolitical conditions (including tariffs and global conflicts)”

Tariff exposure on merchandise costs

“Government actions in various countries relating to tariffs affect the costs of some of our merchandise. The degree of our exposure is dependent on (among other things) the type of goods, rates imposed, and timing of the tariffs. Higher tariffs are more likely to adversely impact rather than improve our results.” · word for word

Litigation risk from multiple class actions

“The Company is involved in many claims, proceedings and litigations...including class actions alleging privacy law violations, wage and hour claims, and opioid-related claims.” · word for word

Self-insured general liability claims expense

“Results were negatively impacted by six basis points attributable to self-insured general liability claims expense.” · word for word

Geopolitical risks including tariffs and foreign exchange; competitive pressures.

“Forward-looking statements mention tariffs, geopolitical conditions, and competition.”

Tariff exposure on merchandise costs

“Government actions in various countries relating to tariffs affect the costs of some of our merchandise. The degree of our exposure is dependent on (among other things) the type of goods, rates imposed, and timing of the tariffs. Higher tariffs are more likely to adversely impact rather than improve our results.” · word for word

LIFO benefit reduction

“Gross margin percentage was negatively impacted by three basis points due to a smaller LIFO benefit in the first quarter of 2026 compared to the first quarter of 2025.” · word for word

Foreign currency translation risk

“Foreign-currency translation adjustment and other, net $(206) million.” · word for word

Geopolitical and tariff risks; foreign exchange volatility.

“Forward-looking statements mention geopolitical conditions (including tariffs) and exchange rates.”

Litigation risk from opioid and privacy lawsuits

“The Company is involved in many claims, proceedings and litigations arising from its business and property ownership. ... In re National Prescription Opiate Litigation ... five class action suits ... alleging privacy law violations stemming from pixel trackers on Costco.com.”

Greenwashing regulatory risk

“The SEC has historically targeted companies engaging in forms of greenwashing with considerable financial penalties. ... Should Costco be implicated in greenwashing, the impact on shareholders could be considerable.” · word for word