Costco beats fourth-quarter estimates as tariff refunds boost profit
publishers 14articles 18first reported 24 Sep, 22:05 UTCdeveloping since 25 Sep · 5 editions
Costco Wholesale reported better-than-expected fourth-quarter results, helped by tariff refunds that also funded price reductions for members.
Revenue for the 16-week quarter ended in August rose 11.1% from a year earlier to $95.72 billion, exceeding the $94.86 billion expected by analysts surveyed by LSEG, according to CNBC. Adjusted earnings increased 15% to $6.75 per share, also topping expectations. The earnings figure included a 15-cent-per-share benefit from tariff refunds, though it remained above consensus after excluding that contribution.
Costco received $184 million in initial tariff refunds during the quarter, The Seattle Times and Anchorage Daily News reported. CEO Ron Vachris said the company reinvested some of the money in lower prices during the second half of the quarter, primarily on produce, meat, beverages and some nonfood products, according to Fast Company. Additional refunds are expected.
Membership fee income climbed 7.3% to $1.85 billion, narrowly missing FactSet’s $1.86 billion estimate. Worldwide and U.S.-Canada renewal rates improved from the previous quarter, while the company also reported growth in its higher-priced executive membership tier.
Costco shares were little changed in extended trading after the report. The stock had closed Thursday at $896.48, 18% below its May 19 closing high.
Vachris also said Costco plans to open 33 new warehouses during its 2027 fiscal year, according to The Hill.
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