Costco Files Tariff Refund Claims; Comparable Sales Up 9.8%
COST•Costco plans to submit IEEPA tariff refund claims through U.S. Customs, expecting approved rebates to reach members over the next two to three months based on other claimants’ timelines. In Q3 ended May 15, comparable sales rose 9.8%, beating the 7.8% estimate, with U.S. comps up 9.4%.
1. Tariff Refund Process
Costco has begun filing IEEPA tariff refund claims with U.S. Customs, planning additional submissions over the next few months. Management indicates that rebates will be passed through to members once approved, though the exact amounts will depend on the volume of approved claims.
2. Q3 Sales Performance
In the quarter ended May 15, comparable sales climbed 9.8%, surpassing the 7.8% consensus, with average ticket rising 7.3% and traffic up 2.4%. U.S. comps increased 9.4%, Canada sales jumped 10.7%, international markets gained 11.2%, and underlying comps excluding gas and FX rose 6.8% in the U.S.
3. Timing and Legal Factors
Costco expects to distribute tariff refunds to members on a rolling basis over two to three months. The timing and total returns will hinge on when cash is received, the refund approval process, and developments in a lawsuit challenging the return methodology.
