Costco Q1 FY2026: The Membership Math After the Fee Hike

Costco reported Q1 FY2026 net sales of approximately $63 billion, with US comparable sales growing in the mid single digits and membership fee revenue continuing to accelerate from the fee increase that took effect in the prior fiscal year. Q1 FY2026 is the cleanest quarterly read on the durability of the fee increase, with several full quarters now reflected in the renewal rate data and the member behavior patterns.

The membership fee durability. Renewal rates in the US and Canada continue to track in the low to mid 90 percent range, validating the assumption that the fee increase has not damaged the underlying member relationship. The Executive membership tier continues to grow as a share of total memberships, with the value math (two percent rewards on annual spend plus exclusive benefits) supporting the trade up from Gold Star to Executive among members with higher annual spend.

The traffic and ticket dynamics. Member transaction frequency continued to grow in Q1 FY2026, with members visiting clubs more often and concentrating more of their grocery and household spend at Costco than at competing channels. Ticket size remained healthy, supported by both grocery essentials and discretionary categories that members continue to find compelling. The traffic and ticket dynamics together drive the comp sales growth that exceeds most mass channel competitors.

The roadshow program in Q1 FY2026. The roadshow program continued to expand in Q1 FY2026, with strong velocity data across most categories and continued discipline in graduating successful roadshow programs to permanent SKU placement. The program's role as the dominant entry path for new brands at Costco remains stable, with the bar for graduation continuing to rise as the program becomes more sophisticated and the competitive intensity grows.

The Kirkland Signature trajectory. Kirkland Signature continued to grow share modestly in selected categories, with the buyer office maintaining the discipline of strong Kirkland positioning where the value math supports it while preserving meaningful national brand assortment in categories where shopper preference rewards the differentiation. For national brands, the Kirkland dynamic remains the constant context for cost negotiation and value positioning.

The ecommerce growth. Costco's ecommerce business grew in the mid teens in Q1 FY2026, well ahead of the in club comp, with strength concentrated in larger ticket and shipped items that fit the dot com channel economics. For brands considering Costco.com as a channel for items that do not fit the warehouse pack out model, the channel continues to scale and deliver meaningful incremental volume.

The vendor implications for FY2026. Three things matter for brands at Costco for the rest of FY2026. First, the fee increase has held, which validates Costco's continued pricing power with members and the implication that vendor side cost pressure continues to be the default. Second, the roadshow program remains the dominant entry path and the bar continues to rise. Third, the Costco.com channel represents real opportunity for brands and items that do not fit the in club pack model.

The international footprint context. Costco's international business continued to grow at solid rates in Q1 FY2026, with particular strength in selected European markets and continued growth in Asia. For brands considering Costco as a multi country partner, the international footprint provides incremental scale that often justifies the operational investment in supporting Costco specific operations.

MOART perspective. Costco Q1 FY2026 is the most encouraging quarterly read in the channel since the fee increase took effect. The membership math is holding, the comp growth is healthy, the alternative channels are scaling, and the operating model is producing strong results. For brands considering Costco as a North American retail entry in 2026, the channel is in the healthiest state in years, and the discipline required to win remains high.