Costco beat revenue and earnings estimates last quarter as comparable sales rose, but flagged an uncertain tariff landscape in the United States after February’s Supreme Court ruling.
Revenue was up 9.2% to US$69.60 billion in the quarter to 15 February, beating Zacks estimates of $69.24 billion. Earnings per share came in at $4.58, rising from $4.02 and surpassing estimates of $4.55.
“The future impact of tariffs remains extremely fluid, as the recently eliminated IEEPA [International Emergency Economic Powers Act] tariffs have now been replaced with new global tariffs for at least the next 150 days,” said CEO Ron Vachris on an earnings call. A 10% blanket tariff has been imposed under a different statute, rising to 15% this week.
Costco sued the U.S. government in December, saying it sought a full refund of import duties if IEEPA tariffs were ruled unlawful.
A U.S. Court of International Trade judge ruled this week that importers are entitled to refunds with interest, and a hearing on the government’s refund plans is set for tomorrow. Total tariff refunds could return $168-182 billion to importers, economists have estimated.
“Regarding IEEPA tariff refunds, it is not yet clear what the process will be, what refunds, if any, will be received, and when this will happen,” said Vachris today.
Costco’s net sales last quarter were $68.24 billion, growing from $62.53 billion year-over-year. Membership fees increased from $1.19 billion to $1.36 billion.
Comparable sales rose 7.4%, above estimates of 6.5%. This was supported by 5.9% growth in the U.S., 10.1% growth in Canada, and a 13% increase internationally.
The company opened four new warehouses during the quarter for a total of 924, below estimates of 928. It plans to open 28 net warehouse locations in fiscal 2026.
Costco (NASDAQ: COST) shares closed 2.4% lower at $982.57, and dropped a further 0.2% after-hours. Its market capitalisation is $436.13 billion.
