Costco Wholesale (COST) Risk Factor Changes

those managed by third parties such as cloud providers or suppliers that otherwise host or have access to confidential information, periodically have vulnerabilities, which may go unnoticed for a period of time.

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 otherwi…

If our merchandise, including food and prepared food products for human consumption, drugs, children's products, pet products, and durable goods, do not meet or are perceived not to meet applicable safety or labeling…

disruption in the supply of products from some local or overseas suppliers, the temporary disruption in the transport of goods to or from overseas, delays in the delivery of goods to our warehouses or depots, delays i…

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 otherwi…

cybersecurity incidents.

unable to make, improve, or develop relevant member-facing technology in a timely manner, our ability to compete and our results of operations could be adversely affected.

failure could lead to recalls and litigation and otherwise damage our reputation and our brands, increase costs, and otherwise adversely impact our business.

•The severity and duration of pandemics;

•Evolving macroeconomic factors, including general economic uncertainty, unemployment rates, and recessionary pressures;

•Changes in labor markets affecting us and our suppliers;

•Unknown consequences on our business performance and initiatives stemming from the substantial investment of time and other resources to the pandemic response;

•The long-term impact of the pandemic on our business, including consumer behaviors; and

•Disruption and volatility within the financial and credit markets.

Changes in rules or interpretation or changes in underlying assumptions, estimates or judgments by our management could significantly change our reported or expected financial performance and have a material impact on…

Our operations require the treatment and disposal of wastewater, stormwater and agricultural and food processing wastes, the use and maintenance of refrigeration systems, noise, odor and dust management, the operation…

Membership loyalty and growth are essential to our business.

IT systems play a crucial role in conducting our business.

Increased security threats and more sophisticated cyber misconduct pose a risk to our systems, networks, products and services.

contamination or spoilage, including the presence of foreign objects, substances, chemicals, other agents, or residues introduced during the growing, manufacturing, storage, handling, and transportation phases, or fau…

We must keep pace with changing member expectations and new developments by our competitors.

The retail business is highly competitive.

Suppliers may be unable to timely provide us with quality merchandise at competitive prices or may fail to adhere to our high standards, resulting in adverse effects on our business, merchandise inventories, sales, an…

Our suppliers (and those they depend upon for materials and services) are subject to risks, including labor disputes, union organizing activities, human rights violations, animal welfare violations, financial liquidit…

During 2026, our international operations, including Canada, generated 27% and 35% of our net sales and operating income.

Natural disasters, extreme weather conditions, and other catastrophic events, including those impacted by climate change, such as extreme temperatures, hurricanes, typhoons, floods, earthquakes, wildfires, droughts; a…

The emergence, severity, magnitude, and duration of global or regional health crises are uncertain and difficult to predict.

We are subject to risks associated with the legislative, judicial, accounting, regulatory, political and economic factors specific to the places where we operate, which could adversely affect our business, financial c…

Accounting principles and related pronouncements, implementation guidelines, and interpretations we apply to a wide range of matters that are relevant to our business, including self-insurance liabilities, are highly…

Our operations require the treatment and disposal of wastewater, stormwater, and agricultural and food processing wastes, the use and maintenance of refrigeration systems, noise, odor, and dust management, the operati…

environment and public health and safety.

We are committed to doing what is right for the business, our members, employees and shareholders over the long-term.

Failure or perceived failure to meet our environmental, social or governance (ESG) goals or expectations set by changing public interest and government regulation of ESG topics could result in reputational harm or adv…

We are subject to a variety of taxes and tax collection and remittance obligations related to federal, state and foreign jurisdictions.

Changes in federal, state and foreign tax rates and legislation, could adversely affect our financial condition and results of operations.

Accounting principles and related pronouncements, implementation guidelines, and interpretations we apply to a wide range of matters that are relevant to our business, including self-insurance liabilities, are highly…

We are subject to a wide and growing array of federal, state, local and international laws and regulations relating to (among other things), product and food safety, marketing, information security and privacy, labor…

Changes in or failure to comply with laws and regulations could adversely impact our business, financial condition and results of operations.

unable to make, improve, or develop relevant member-facing technology in a timely manner, our ability to compete and our results of operations could be adversely affected.

We must keep pace with changing member expectations and new developments by our competitors.

If we do not successfully develop and maintain a relevant and comprehensive digital experience for our members, our results of operations could be adversely impacted.

Our growth is dependent, in part, on our ability to acquire property and build or lease new warehouses and depots.

We are subject to a variety of taxes and tax collection and remittance obligations in the U.S.

Our operations require the treatment and disposal of wastewater, stormwater and agricultural and food processing wastes, the use and maintenance of refrigeration systems, noise, odor and dust management, the operation…

Changes in rules or interpretation or changes in underlying assumptions, estimates or judgments by our management could significantly change our reported or expected financial performance and have a material impact on…

The impact of changes to or the introduction of new laws, regulations and policies and enforcement practices, can be unpredictable.