Costco delivered strong fiscal fourth quarter results, driven by membership growth and a one-time tariff refund. Bank of America downgraded Nike due to delayed sales recovery, while Lego and Bentley announced significant investments in production facilities and electric vehicle development. Suzuki also outlined plans to double its development speed and expand capacity in India.
01Earnings
Costco Reports 14.9% Net Income Growth in Fiscal Q4
Costco Wholesale posted fiscal fourth-quarter of $2.998 billion, or $6.75 a share, topping Wall Street estimates on the back of a non-recurring refund. The result marked a 14.9% increase from $2.610 billion, or $5.87 a share, in the same period a year earlier. Total for the 16-week quarter ended August 30 rose to $95.72 billion from a comparable prior-year level, beating analyst forecasts of $94.86 billion. Net sales grew 11.2% to $93.9 billion. The quarterly figures included a $0.15-per-share benefit from International Emergency Economic Powers Act tariff refunds after Costco received $184 million in refunds and interest. Chief Financial Officer Gary Millerchip stated that the company reinvested part of that sum into lower prices on produce, meat, beverages, and non-food items, with management planning to direct most future refunds into member value. Excluding the net refund, underlying rose 12.4% to $6.60. Comparable sales increased 9.4%, or 6.7% when stripping out gasoline prices and currency fluctuations. Membership fee income climbed 7.3% to $1.85 billion, extending a pattern of decelerating growth following the September 2024 fee increase. Paid memberships reached 84.1 million, an increase of 3.8%. Total expenditures for fiscal 2027 are projected at approximately $7.5 billion as the warehouse club targets 33 new openings, building on a total of 939 warehouses at the end of fiscal 2026. Costco shares traded flat in after-hours sessions following the report.
Costco Wholesale Reports Q4 and Full-Year Fiscal 2026 Results
Costco Wholesale Corporation reported fourth-quarter of $2.998 billion, or $6.75 per diluted share, as sales rose 11.2% to $93.87 billion for the 16 weeks ended August 30, 2026. Net income for the same period a year earlier was $2.610 billion, or $5.87 per diluted share, on net sales of $84.43 billion. The fourth-quarter results included a nonrecurring benefit of $0.15 per diluted share from refunds under the International Emergency Economic Powers Act, net of partial reinvestment in lower prices for members. Excluding that benefit, net income increased 12.3% and diluted rose 12.4%. For the full fiscal year, net sales increased 10.1% to $297.2 billion from $269.9 billion, while net income reached $9.226 billion, or $20.76 per diluted share, compared to $8.099 billion, or $18.21 per diluted share, in the prior fiscal year. Comparable sales for the fourth quarter rose 9.4%, or 6.7% after adjusting for gasoline-price and . Digitally enabled comparable sales increased 19.5% in the quarter and 20.9% for the full fiscal year. Membership-fee income rose 7.3% to $1.849 billion, driven by higher executive membership penetration and growth in the membership base. Paid executive members reached 42.3 million, up 9.4% from a year earlier, while total paid members reached 84.1 million. The U.S. and Canada renewal rate was 92.3%, and the worldwide renewal rate was 89.8%. expenditures totaled $2.21 billion in the fourth quarter and $6.4 billion for the fiscal year, with Costco expecting approximately $7.5 billion in capital expenditures in fiscal 2027. The company opened 28 warehouses during the fiscal year to bring its global total to 939 locations, and plans to open 33 warehouses during fiscal 2027.
Net Sales by Period ($B)
Net sales rose 11.2% in Q4 and 10.1% for the full fiscal year.
Suzuki Aims to Halve Vehicle Development Time by 2030
Suzuki Motor plans to compress its new vehicle development cycle to 24 months by 2030, down from the current 40 to 48 months. CEO Toshihiro Suzuki announced the timeline on Friday as part of a strategy to counter rapid industry shifts led by China. The automaker targets a 30 per cent increase in development efficiency and a 50 per cent gain in production efficiency measured against fiscal 2020. The production efficiency target uses the company's Manesar plant in India as a . Maruti Suzuki is simultaneously working through an unusually large product programme to introduce nine new models over three years, including seven SUVs. Each vehicle requires a wider choice of petrol, CNG, hybrid, flex-fuel and electric powertrains. Engineering, design, production, quality and procurement teams will work in parallel using digital simulation to shorten the cycle. Suzuki is targeting annual production capacity of four million units in India from fiscal 2030 onward. Suzuki shares rose 0.9 per cent on Friday.
Vehicle Development Cycle (Months)
Development time is targeted to fall by half by 2030
BofA Downgrades Nike Stock and Cuts Price Target to $30
Bank of America downgraded Nike to Underperform from Neutral on Friday and cut its price target to $30 from $47, citing a slower turnaround that will keep sales negative through fiscal 2027. The brokerage reduced its fiscal 2027 and 2028 estimates by 11% and 12%, respectively, projecting fiscal 2027 per-share earnings of $1.43 on of $44.31 billion. The new price target values the stock at a 16 times multiple, down from 22 times and aligned with peer averages. North American wholesale grew 14% in fiscal 2026, but sell-through to consumers has lagged shipments as classic styles weaken and new product launches miss expectations. In China, a reduction in partner online sales is adding promotional pressure through the second quarter. The earnings outlook now relies heavily on expansion and expense reduction, with a payout ratio exceeding 100% raising pressure on shareholder distributions. Nike reports fiscal first-quarter earnings on October 1, with analysts expecting revenue to fall 2.4% to $11.4 billion.
Meta Expected to Unveil Camera-Free Smart Glasses Amid Privacy Concerns
Meta Platforms introduced the Muse Charm, a pocket-sized hardware interface for its Muse agent, during its annual Meta Connect conference. Chief Executive Mark Zuckerberg said the company has shifted its strategic focus toward personal superintelligence after artificial intelligence progress outpaced the hardware timeline required for his original metaverse vision. The Tamagotchi-style device features a 2-inch OLED touchscreen, front and rear cameras, speakers, microphones, and built-in 5G connectivity, and is scheduled to ship in December ahead of the holiday season. Meta did not disclose pricing for the Charm device. The Muse AI agent, which debuted on September 8 and quickly reached the top of Apple's App Store and Google Play Store, will be integrated into the new hardware. Meta plans to Muse by taking a small fee from transactions completed through the agent, which currently integrates with partners including PayPal, Walmart, Best Buy, Gap, Sephora, Wayfair, American Eagle, Expedia, and Instacart. Alongside the handheld device, Meta announced a virtual reality headset priced at $1,299.99 slated for release in spring 2027, alongside an expansion of its smart-glasses lineup to more than 100 styles by the end of the year. Meta shares closed at $736.60 on September 22, 2026, up 33 percent over the prior month as analysts raised price targets following the initial adoption of the Muse platform.
Meta Price Target Range ($)
The average price target sits 4.06 percent above the recent close.
Lego to Spend $400 Million Expanding Mexico Manufacturing Facility
The Lego Group will invest over $400 million to expand its manufacturing facility in Monterrey, Mexico, adding packing and warehousing capabilities while creating 1,300 jobs. Construction on the project is scheduled to begin in early 2027 and finish by 2029. The investment adds more than 667,000 square feet, or 62,000 square meters, of space to the site, which currently employs 7,300 workers. The expansion increases total production capacity at the plant by 35% and includes a fully-automated high-bay warehouse. Upon completion, the facility will span 210,080 square meters on 87 hectares. The Monterrey site serves customers across the Americas and operates alongside a separate packaging and warehousing project announced in 2023 that added 59,000 square meters and 900 jobs earlier this year. Lego is separately investing more than $1.5 billion to build a factory and regional distribution center in Chesterfield, Virginia, with both facilities on track to open in 2027. The Mexican expansion follows first-half 2026 results where grew 26% and consumer sales rose 22%, outpacing the broader global toy market growth of 14% reported by Circana for the same period.
bbc.co.uk reports that Bentley has unveiled its first fully electric car, the Torcal SUV, following a £350m factory upgrade in Cheshire. The production line will be housed at the company's headquarters in Crewe, supporting 4,000 local jobs. The vehicle is equipped with a 113kWh battery that delivers a range of up to 375 miles, and it supports rapid charging from 10% to 80% in under 20 minutes via a 400kW charger. The standard model reaches a top speed of 155mph and accelerates to 60mph in 3.3 seconds. Meanwhile, the Torcal S variant serves as the brand's most powerful car to date, achieving a top speed of 162mph and a 0 to 60mph time of 2.8 seconds. The investment arrives as the wider UK motor industry contends with headwinds and localized job cuts.
Torcal Performance Metrics (count)
The Torcal S reaches 60mph in 2.8 seconds with a top speed of 162mph.
Corporate investments in manufacturing and EV technology signal long-term confidence, even as consumer brands face uneven demand. It remains uncertain whether heavy capital spending will offset near-term earnings drag from delayed sales recoveries.
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