Costco Wholesale Corporation

Core-on-core margins were higher by 22 basis points with broad-based improvement across non-foods, food and sundries and fresh, driven by deflation turnover benefits, supply chain efficiency and KS penetration, partially offset by higher 2% executive rewards and lapping co-brand card income.

Management said recently-eliminated IEEPA tariffs have been replaced by new global tariffs for at least the next 150 days and committed to return any future IEEPA refunds to members through lower prices, while continuing to mitigate through country-of-production shifts, global buying consolidation, KS expansion and domestic sourcing.