Costco Delivers Strong Quarter While Navigating Tariff Turbulence

While other retailers are sweating over tariffs, investors and shoppers alike have turned to CostcoCOST

to weather the storm. The warehouse kingpin’s stock surged 3.1% Friday after beating earnings and revenue expectations. With its 14.3% YTD gain (vs. the S&P 500’s meager 0.7%), Costco is turning tariff turbulence into a competitive advantage.

• COST
  posted a $4.28 EPS (vs. $4.24 expected) and $63.21B in revenue (vs. $63.19B expected) — with comparable and e-commerce sales rising 8% and ~16% from last year, respectively.
• ~33% of Costco’s US sales are imported internationally, with ~8% stemming from China — opting to “really eliminate the [cost] impact” as rivals Best BuyBBY
  , WalmartWMT
  , and Macy’sM
  hike prices.

Bulk advantage: Costco’s secret weapon lies in its limited SKU strategy and massive buying power, allowing it to negotiate harder with suppliers than competitors. The retailer strategically absorbed tariff costs on staples like pineapples and bananas while raising prices on discretionary items like flowers. By rushing shipments ahead of tariffs and rerouting goods from high-tariff countries, Costco actually lowered prices on eggs, butter, and olive oil — proving that sometimes it’s better to be a goliath when navigating trade wars.