COST · CIK 909832
What Costco Wholesale Corporation told the SEC could break it.
Costco's flagged risks are mostly about geographic concentration. Its performance leans heavily on North America, with the U.S. and Canada making up 86% of net sales and 84% of operating income in 2025, and within the U.S. it is especially dependent on California, which alone was 26% of U.S. net sales and skews toward higher-volume warehouses — concentrating its exposure to those economies and to local disasters. The remainder is the ordinary cost-and-currency exposure of that footprint: fluctuations in energy prices, particularly electricity and natural gas, and the foreign-exchange swings that come with international operations generating 27% of net sales as it continues to expand abroad.
4 self-disclosed vulnerabilities, pulled from its own filings — each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- U.S. and Canada = 86% of net sales / 84% of operating incomemedium
Costco is highly dependent on its U.S. and Canadian operations, which comprised 86% of net sales and 84% of operating income in 2025.
“Our financial and operational performance is highly dependent on our U.S. and Canadian operations, which comprised 86% and 84% of net sales and operating income in 2025.”
SEC filing →As of 2025 - California = 26% of U.S. net salesmedium
Within the U.S., Costco is highly dependent on California, which comprised 26% of U.S. net sales in 2025 and skews toward higher-volume warehouses — concentrating exposure to that single state's economy and disasters.
“Within the U.S., we are highly dependent on our California operations, which comprised 26% of U.S. net sales in 2025.”
SEC filing →As of 2025
Commodity & input dependence
- energy price exposure (electricity, natural gas, fuel)low
Costco is exposed to price fluctuations for energy — particularly electricity and natural gas — and other commodities used in retail and manufacturing, partially mitigated via fixed-price contracts primarily in the U.S. and Canada.
“We are exposed to fluctuations in prices for energy, particularly electricity and natural gas, and other commodities used in retail and manufacturing operations.”
SEC filing →As of 2025
Currency (FX)
- international operations ~27% of net sales / 34% of operating incomelow
Costco's international operations (including Canada) generated 27% of net sales and 34% of operating income in 2025, exposing results to foreign-exchange rate fluctuations as it continues international expansion.
“During 2025, our international operations, including Canada, generated 27% and 34% of our net sales and operating income.”
SEC filing →As of 2025
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings — including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
“The Company's top-ten customers in 2025 included (in alphabetical order): Amazon.com Inc., Costco Wholesale Corporation, Grainger Inc., Office Depot Inc., Staples Inc., Target Corporation, The Home Depot Inc., The Kroger Co., Uline Inc. and Walmart Inc.”
Cited →“Our largest retailers include Amazon, Costco and Walmart, each of which accounted for more than 10% of our net sales, and together made up 45.7% of our net sales for the year ended December 31, 2025.”
Cited →“In 2025, our largest distributor by net sales accounted for less than 10% of our net sales and our largest customers, Walmart and Costco, accounted for 25% and 10% of our net sales, respectively.”
Cited →“Our partners include major retailers such as Amazon, Best Buy, Costco, Hobby Lobby, HSN, Michaels, Target, and Walmart, along with many others.”
Cited →“Our largest customers, Walmart (which includes its affiliates, including Sam's Club), Costco and Amazon, accounted for approximately 74.0% of our net sales in our year ended September 30, 2025. No other customer accounted for more than 10% of our fiscal 2025 net sales.”
Cited →
In the MyPRIA app, this is checked against the companies you actually own.
← World Watch