Analyst David Bellinger said Costco used about half of $184 million in tariff refunds for price cuts on high-volume items. He said Q4 earnings growth slightly exceeded estimates, with U.S. same-store sales up about 7% and membership growth just under 4%.
Bellinger said Costco is due for more than $300 million in additional tariff refunds and expects much of the money to flow back to members through lower prices and rewards. He said more than nine in 10 members renew, with the renewal rate edging up over the past few quarters.
Bellinger said Costco’s membership growth had slowed from 7%–8% a few years ago. He also said consumer strain was becoming more visible, citing higher fuel costs and McDonald’s negative same-store sales growth in August.
