Costco Reports Strong Earnings with a One-Time Tariff Refund
Costco Wholesale (COST) reported strong fiscal fourth-quarter results after the market closed on Thursday. The company's earnings per share rose to $6.75, up 15% year-over-year and exceeding analyst expectations. However, approximately $0.15 of this increase came from a one-time tariff refund following a Supreme Court ruling that deemed President Trump’s emergency tariffs illegal. Excluding the refund, Costco's earnings per share were still at $6.60 for the quarter, representing 12% growth compared to last year and slightly above analyst estimates. The company also reported total revenue of $95.7 billion, up 11%. CFO Gary Millerchip noted that part of the tariff refunds was reinvested into lower prices for members. Comparable sales rose by 9.4%, with a significant portion driven by higher gas prices and currency fluctuations. Membership fee income grew at a slower rate in Q4 compared to earlier quarters, suggesting potential future growth may moderate from double-digit levels.
Tickers: $COST
Topics: financial_performance retail tariffs