COST · 10-Q · 2026Q2 · Full report
FX / Currency Headwinds
COSTCO WHOLESALE CORP /NEW · 2026-06-03 · Importance 49 · Surprise 66 · In source text
Changes in foreign currencies relative to the U.S. dollar positively impacted Costco's net sales in fiscal 2026, driven by its Canadian and Other International operations. Management reports foreign-exchange benefits of approximately $643 million (104 basis points) in the third quarter of 2026 and approximately $1,578 million (85 basis points) in the first thirty-six weeks of 2026. The company calculates this impact as the difference between current and prior period exchange rates used to convert international results into U.S. dollars. Management presents results both including and excluding foreign-exchange impacts as supplemental information.
Key facts
- Higher gasoline prices positively impacted net sales by $1,367, or 221 basis points, in the third quarter of 2026, with a 20% increase in the average price per gallon. source
- Changes in foreign currencies positively impacted net sales by approximately $643, or 104 basis points, in the third quarter of 2026. source
- Changes in foreign currencies positively impacted net sales by approximately $1,578, or 85 basis points, in the first thirty-six weeks of 2026. source
- Higher gasoline prices positively impacted net sales by $936, or 50 basis points, in the first thirty-six weeks of 2026, with a 5% increase in the average price per gallon. source
- Changes in foreign currencies increased SG&A expenses by approximately $48 in the third quarter of 2026 compared to the third quarter of 2025. source
- Changes in foreign currencies positively impacted gross margin by approximately $170 in the first thirty-six weeks of 2026 compared to the first thirty-six weeks of 2025. source
- Changes in foreign currencies positively impacted gross margin by approximately $69 in the third quarter of 2026 compared to the third quarter of 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +2.2% | Changes in foreign currencies positively impacted net sales by approximately $1,578, or 85 basis points, in the first thirty-six weeks of… |
| revenue | positive | realized | +1.9% | Higher gasoline prices positively impacted net sales by $1,367, or 221 basis points, in the third quarter of 2026, with a 20% increase in… |
| revenue | positive | realized | +0.9% | Changes in foreign currencies positively impacted net sales by approximately $643, or 104 basis points, in the third quarter of 2026. |