Costco returns tariff refunds to members via price reductions

Costco Wholesale Corporation has begun returning a portion of tariff refunds received from the U.S. government to its members. The company used its fourth-quarter earnings report to provide details on the initiative.

Company CEO Ron Vachris stated that Costco received "initial" refunds during its fourth quarter and "reinvested some of these dollars to give value back to our members." This was primarily achieved through price reductions on a range of items, including produce, meat, and beverages, as well as nonfood goods like home furnishings and hardware.

Costco CFO Gary Millerchip disclosed that the company received $184 million in tariff refunds during the fourth quarter. This amount represents approximately one-third of the total refunds the company expects to receive. By the time of the company's earnings call, Costco had already received a similar amount in refunds in the first quarter of fiscal year 2027.

The company concluded its fourth quarter of fiscal year 2026 with a net income of $2.998 billion, an increase year-over-year. The full-year net income rose to $9.226 billion. Costco also expanded its store footprint, operating 939 locations, a net increase of 25 stores from the previous year.