Costco Got $184 Million in Tariff Refunds — Here's What It Did with the Money
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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Costco got $184 million in tariff refunds — here's what it did with the money
Costco on Thursday said it received $184 million in tariff refunds in the company's fourth quarter, the majority of which was reinvested into lower pricing for members shopping at the retail giant's warehouses.
Costco receives $184M in tariff refunds, says most will go toward lower costs for members
Costco on Thursday said it received $184 million in tariff refunds in the company's fourth quarter, the majority of which was reinvested into lower prices for members shopping at the retail giant's warehouses.
Costco received $184 million in tariff refunds and secured a part of it will reinvest it for the benefit of its customers: will it return money to them?
COSTCO PAYS IT FORWARD: Retailer Returns $184M in Tariff Refunds to Shoppers as Prices Drop on Meat, Produce and More
Costco has reinvested the majority of $184 million in tariff refunds into lower shelf prices, cutting costs on produce, meat, beverages, home furnishings and hardware in a direct rebate to American shoppers.
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