Costco Plans Lower Prices from Tariff Refunds, Q2 Same-Store Sales Up 6.7%
Costco will pass refunds from the Supreme Court’s nullification of Trump-era emergency tariffs to customers as lower prices and already cut textile, bedding and cookware prices after tariffs fell for China. In fiscal Q2 2026, same-store sales excluding gas rose 6.7% and net income grew nearly 14% to $2.04 billion.
1. Tariff Refund Strategy
Costco was among more than 1,000 firms that argued the 1977 International Emergency Economic Powers Act did not authorize Trump’s emergency tariffs. After the Supreme Court struck those tariffs, Costco plans to pass any resulting refunds to shoppers as price cuts and has already lowered textile, bedding and cookware prices following tariff reductions for China.
2. Fiscal Q2 2026 Performance
In fiscal Q2 2026, Costco’s same-store sales excluding fuel climbed 6.7%, surpassing analysts’ forecasts of a 5.88% gain. Net income rose nearly 14% to $2.04 billion, driven by strong membership fee revenue and robust merchandise demand.
3. Private-Label Investment and Membership
Costco continues to invest heavily in its Kirkland Signature private-label brand to offer value-focused alternatives to national brands. The company also raised its membership fee in 2024 to support warehouse expansion and margin improvement.