By Elias Schisgall
Costco is evaluating the potential for tariff refunds, with plans to pass on savings to shoppers through lower prices if the warehouse retailer manages to land a windfall.
Chief Executive Ron Vachris cautioned that the company doesn't know whether or how it will secure a refund, which became a possibility following the Supreme Court's ruling striking down President Trump's global tariffs last month.
"As we've done in the past, when legal challenges have recovered charges passed on in some form to our members, our commitment will be to find the best way to return this value to our members through lower prices and better values," Vachris said on an analyst call Thursday. "We'll be transparent in how we plan to do this if and when we receive any refunds."
Costco sued the Trump administration in December, requesting a full refund in advance of the Supreme Court's ruling. It didn't say at the time how much it had paid in tariff costs.
Vachris said that the company is prepared to respond to Trump's new wave of global tariffs through shifting supply chains, increasing sourcing from domestic producers, and leaning further on Kirkland Signature, Costco's private-label brand. Still, he said, the outlook for tariffs remains murky.
"The future impact of tariffs remains extremely fluid," Vachris said
The company has already lowered the costs of products including eggs, cheese, coffee, and some paper products, Vachris said, citing lower inflation for those goods. The company saw overall inflation decreasing in the fiscal second quarter, including by deflation in the costs of eggs, produce, and dairy.
Costco on Thursday posted a second-quarter profit of $2.04 billion, or $4.58 a share, compared with a profit of $1.79 billion, or $4.02 a share, a year earlier. Analysts polled by FactSet were expecting a profit of $4.52 a share.
Revenue rose to $69.6 billion from $63.72 billion a year prior. Analysts polled by FactSet were expecting $69.29 billion in revenue.
Same-store sales, adjusted to exclude impacts from gas prices and foreign exchange rates, rose 6.7% year-over-year, outpacing the 6.3% growth expected by analysts.
Adjusted same-store sales grew the most in Canada, at 7.6% growth. Same-store sales rose 7.1% in Costco's other international markets and 6.4% in the U.S.
Membership fees grew to $1.36 billion, up from $1.19 billion a year earlier. Analysts were expecting $1.33 billion. Net sales rose to $68.24 billion from $62.53 billion.
Costco opened four warehouses in the fiscal second quarter and is targeting 28 net new openings during the full fiscal year as the company looks to expand its market share and drive membership growth.
The company opened one net new location in the U.S. and two business centers in Canada, as well as relocating one U.S. location during the quarter. The company added eight net new locations in the previous quarter and is targeting upwards of 30 new warehouses annually beginning in fiscal 2027.
Costco competitor BJ's Wholesale Club is also pushing to open stores, targeting 30 new locations by the end of the year. BJ's posted rising sales and a higher profit on Thursday before the bell, but said that increased investment in stores would pressure the company's profit margin this year.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
March 05, 2026 17:46 ET (22:46 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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