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Costco Receives $184M in Tariff Refunds, Plans to Pass Savings to Shoppers
The refunds, including $10 million in interest, were reinvested across everyday and nonfood goods to give members more value, Costco said.
- On Thursday, Costco Wholesale reported fourth-quarter net income of $3 billion, a 15% year-over-year increase boosted by $184 million in tariff refunds from the federal government.
- These refunds stem from a February Supreme Court ruling that declared President Donald Trump's use of the 1977 International Emergency Economic Powers Act to impose tariffs unconstitutional.
- Chief Executive Ron Vachris said Costco reinvested the funds into price reductions on produce, meat, beverages, and non-food items to give "value back to our members."
- The tariff benefit added $0.15 per diluted share to quarterly earnings, and Chief Financial Officer Gary Millerchip indicated Costco expects more refunds in fiscal 2027.
- Despite the earnings beat, Costco stock trades at 43 times earnings and has dropped 18% from its 52-week high of $1,096.50, reflecting investor caution.
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The Columbian+3 Reposted by 3 other sources
Costco clinches $184M in tariff refunds, with more expected
Costco confirmed it received $184 million in tariff refunds, with more on the way, according to its latest earnings call.
·Vancouver, United States
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Costco uses US$184 million in tariff refunds to lower prices
Costco Wholesale Corp. is using refunds from U.S. tariffs to lower prices at its stores. The company said it received US$184 million in refunds in its fourth quarter after the U.S. Supreme Court struck down tariffs under the International Emergency Economic Powers Act back in February. The…
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Total News Sources10
Leaning Left3Leaning Right2Center4Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 33%
C 45%
R 22%
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