Financial Analysis

"COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company and its subsidiaries are subject to legal proceedings, claims and litigation arising in the ordinary course of business related to the Companys operations and property ownership. The Company evaluates such matters on a case-by-case basis and vigorously contests any such legal proceedings or claims which the Company believes are without merit. The Company believes that the final disposition of these matters will not have a material adverse effect on its financial position, results of operations or liquidity. It is possible, however, that the Company's results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to such matters. The Company establishes an accrual for legal proceedings if and when those matters reach a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. The Company monitors those matters for developments that would affect the likelihood of a loss and the accrued amount, if any, thereof, and adjusts the amount as appropriate. If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual but will continue to monitor the matter for developments that will make the loss contingency both probable and reasonably estimable. If it is at least a reaso …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Short-term borrowings consist of unsecured lines of credit and short-term overdraft borrowings. The following table summarizes the balances of total facilities, facilities used and facilities available (in thousands): Facilities Used Total Amount of Facilities Short-term Borrowings Letters of Credit Facilities Available Weighted average interest rate May 31, 2026 - Committed $ 75,000 $ $ $ 75,000 % May 31, 2026 - Uncommitted 96,000 3,445 92,555 3.3 May 31, 2026 - Total $ 171,000 $ 3,445 $ $ 167,555 3.3 % August 31, 2025 - Committed $ 75,000 $ $ $ 75,000 % August 31, 2025 - Uncommitted 96,000 12,286 83,714 9.5 August 31, 2025 - Total $ 171,000 $ 12,286 $ $ 158,714 9.5 % As of May 31, 2026 and August 31, 2025, the Company was in compliance with all covenants or amended covenants for each of its short-term facility agreements. These facilities generally expire annually or bi-annually and are normally renewed. One of these facilities is a committed credit agreement with one bank for $75.0 million. In exchange for the banks commitment to fund any drawdowns the Company requests, the Company pays an annual commitment fee of 0.25%, payable quarterly, on any unused portion of this facility. Additionally, the Company has uncommitted facilities in most of the countries where it operates, with drawdown requests subject to approval by the individual banks each time a drawdown is requested. The following table provides the changes in long-term debt for the nine months ended May 31, 20 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

In the following table, net merchandise sales are disaggregated by merchandise category (in thousands): Three Months Ended Nine Months Ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 Foods & Sundries $ 669,081 $ 607,693 $ 1,976,479 $ 1,813,765 Fresh Foods 464,379 400,264 1,334,856 1,170,266 Hardlines 150,074 141,357 457,568 440,790 Softlines 88,058 70,632 270,227 216,761 Food Service and Bakery 63,946 56,792 188,734 169,025 Health Services 15,160 13,259 43,160 37,804 Net Merchandise Sales $ 1,450,698 $ 1,289,997 $ 4,271,024 $ 3,848,411

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Recent Accounting Pronouncements - Not Yet Adopted FASB ASC 740 ASU 2023-09Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures. ASU No. 2023-09 focuses on income tax disclosures around effective tax rates and cash income taxes paid. The ASU is effective for annual periods beginning after December 15, 2024. The Company expects to adopt ASU No. 2023-09 on a retrospective basis for our annual reporting for the fiscal year ending on August 31, 2026. The adoption of ASU 2023-09 is not expected to have a material impact on the Companys consolidated financial statements, but is expected to result in expanded income tax disclosures. FASB ASC 220 ASU 2024-03 Income Statement (Topic 220): Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses. ASU No. 2024-03 requires disaggregated disclosure of income statement expenses. The ASU is effective for annual reporting periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption is permitted. The Company expects to adopt ASU No. 2024-03 for our annual reporting for the fiscal year ending on August 31, 2028. The Company is evaluating the impact on the Company's consolidated financial statements. FASB ASC 350 ASU 2025-06 Intangibles (Subtopic 350): Targeted Improvements to the Accounting for Internal-Use …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION Performance Obligations The Company identifies each distinct performance obligation to transfer goods (or bundle of goods) or services. The Company recognizes revenue when (or as) it satisfies a performance obligation by transferring control of the goods or services to the customer. Net Merchandise Sales . The Company recognizes merchandise sales revenue, net of sales taxes, on transactions where the Company has determined that it is the principal in the sale of merchandise. These transactions may include shipping commitments and/or shipping revenue if the transaction involves delivery to the customer. Membership Fee Revenue. Membership income represents annual membership fees paid by the Companys warehouse club Members, which are recognized ratably over the 12-month term of the membership. Our membership policy allows Members to cancel their membership in the first 60 days and receive a full refund. After the 60-day period, membership refunds are prorated over the remaining term of the membership. The Company has significant experience with membership refund patterns and expects membership refunds will not be material. Therefore, no refund reserve was required for the periods presented. Membership fee revenue is included in Membership income in the Company's consolidated statements of income. The deferred membership fee is included in deferred income in the Company's consolidated balance sheets. Platinum Points Reward Programs. The Company currently offer …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENTS The Company and its subsidiaries currently are principally engaged in the international operation of membership shopping in 57 warehouse clubs located in 12 countries and one U.S. territory that are located in Central America, the Caribbean and Colombia. In addition, the Company operates distribution centers and corporate offices in the United States. The Company has aggregated its warehouse clubs, distribution centers and corporate offices into reportable segments. The Companys reportable segments are based on managements organization of these locations into operating segments by general geographic location, which are used by management in setting up management lines of responsibility, providing support services, and making operational decisions and assessments of financial performance. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. Certain revenues, operating costs and inter-company charges included in the United States segment are not allocated to the segments within this presentation, as it is impractical to do so, and they appear as reconciling items to reflect the amount eliminated on consolidation of intersegment transactions. From time to time, the Company revises the measurement of each segment's operating income and net income, including certain corporate overhead allocations, and other measures as determined by the information regularly reviewed by management. When the Company does so, the previous period am …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements of the Company included herein include the assets, liabilities and results of operations of the Companys wholly owned subsidiaries. The consolidated financial statements also include the Company's investment in, and the Company's share of the income (loss) of, joint ventures recorded under the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the SEC and reflect all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to fairly present the financial position, results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of the results for the year. The Company determines whether any of the joint ventures in which it has made investments are a Variable Interest Entity (VIE) at the start of each new venture and if a reconsideration event has occurred. The Company also considers whether it must consolidate a VIE and/or disclose information about its involvement in a VIE. A reporting entity must consolidate a VIE if that reporting entity has a variable interest (or combination of variable interests) and is determined to be the primary beneficiary. If the Company determines that it is no …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"STOCKHOLDERS EQUITY Dividends The following table summarizes the dividends declared and paid during fiscal years 2026 and 2025 (amounts are per share): First Payment Second Payment Declared Amount Record Date Date Paid Date Payable Amount Record Date Date Paid Date Payable Amount 2/6/2025 $ 1.26 2/18/2025 2/28/2025 N/A $ 0.63 8/15/2025 8/29/2025 N/A $ 0.63 2/5/2026 $ 1.40 2/17/2026 2/27/2026 N/A $ 0.70 8/17/2026 N/A 8/31/2026 $ 0.70 On February 5, 2026, the Companys Board of Directors declared an annual cash dividend in the total amount of $1.40 per share, with $0.70 per share paid on February 27, 2026 to stockholders of record as of February 17, 2026 and $0.70 per share payable on August 31, 2026 to stockholders of record as of August 17, 2026. The declaration of future dividends (ongoing or otherwise), if any, the amount of such dividends, and the establishment of record and payment dates is subject to final determination by the Board of Directors at its discretion after its review of the Companys financial performance and anticipated capital requirements, taking into account the uncertain macroeconomic conditions on our results of operations and cash flows. Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss The following tables disclose the effects on accumulated other comprehensive loss of each component of other comprehensive income (loss), net of tax (in thousands): Amount Beginning balance, March 1, 2026 $ (123,496) Foreign currency translation …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS The Company has evaluated all events subsequent to the balance sheet date as of May 31, 2026 through the date of issuance of these consolidated financial statements and has determined that there are no subsequent events that require disclosure.

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