Costco shares are down slightly premarket after fourth-quarter sales fell short of Investing.com estimates

Investing.com – Costco (NASDAQ:) reported fiscal fourth-quarter revenue that fell short of analysts' estimates as a decline in spending on big-ticket items and lower gasoline prices weighed on the members-only warehouse chain.

Shares of the company fell 1.4% in U.S. premarket trading following the report. They have gained around 38.5% so far this year.

In a call with analysts following the results, Chief Financial Officer Gary Millerchip noted that there were “signs that the consumer is being very selective about how they spend their money,” adding that shoppers are increasingly looking for bargains Items such as televisions and household appliances.

Gas prices also rose 5.4% in the 16-week period ended Sept. 1, a slower rate than the 6.6% increase in the previous quarter.

Meanwhile, e-commerce sales rose 18.9%, down from 20.7% in the previous quarter, even as Costco sought to increase sales activity both online and through its mobile app.

Revenue rose nearly 1% to $79.69 billion, below Wall Street estimates of $79.93 billion, although net income of $5.29 per share beat expectations.

Millerchip noted an increase in annual membership dues of $5 to $65 for its “Gold Star” members and up to $130 from $120 for its executive members at the start of the year will have “minimal impact” on Costco’s returns in the current fiscal year. Instead, the changes, which took effect Sept. 1, would benefit the second half of the 52-week period and fiscal year 2026, he said.

“(A)f you think about the frequency of our earnings growth over the (20)25 period, it will likely be less linear than you would normally expect,” Millerchip added.

In a note to clients, Morgan Stanley analysts praised Costco's recent results, saying they “lived up to its leading retail valuation” and gave the company “strong” momentum heading into the new fiscal year.

(Yasin Ebrahim and Reuters contributed reporting.)