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Costco clinches $184M in tariff refunds, with more expected

Megan Ulu-Lani Boyanton, The Seattle Times on

Published in Business News

Costco confirmed it received $184 million in tariff refunds, with more on the way, according to its latest earnings call.

On Thursday, the big-box retailer said the money was reinvested to give value back to our members" and was dispersed across everyday products and nonfood goods. Chief Financial Officer Gary Millerchip said the company targeted items “that would have the most impact for members.”

The Issaquah-based chain of warehouse clubs pocketed the refunds in its fourth quarter.

It’s more than a third of the total tariff refunds the company expects. The money consisted of $174 million in refunds and $10 million in interest.

A proposed class-action lawsuit filed against Costco earlier this year sought to secure refunds for customers who helped pay tariffs on imported products. That litigation is ongoing.

In February, the U.S. Supreme Court ruled against President Donald Trump’s ability to impose tariffs through the International Emergency Economic Powers Act, which meant businesses that shelled out for tariffs are entitled to refunds from the federal government.

As of September, U.S. Customs and Border Protection had refunded almost $135 billion, Bloomberg reported.

Costco's latest quarterly earnings surpassed expectations.

In the fourth quarter, revenue climbed close to $96 billion — an 11% increase compared with the same quarter last year — while yearly revenue hit $303 billion, 10% more than last year.

 

Quarterly net income surged 15% year over year to almost $3 billion. That period was "positively impacted by the tariff refunds, the report said.

Net income for the fiscal year saw a 14% hike to about $9 billion.

It’s been a busy year for Costco: The retailer set record gas sales amid spendy fuel prices. “Gas was definitely a major impact on top-line sales,” Millerchip said.

Costco has also made headlines for the return of its Kirkland brand semisweet chocolate chips and local excitement around its imported Indian mangoes.

Last month, the business announced its own Medicare Advantage plan.

The company has also found itself in the crosshairs of lawsuits tied to its popular $5 rotisserie chicken, grain-free dog food and Orgain protein powder. The chain notably lost $400,000 worth of lobster over the winter due to cargo theft.

Costco's empire is made up of almost 950 warehouses around the world, with 647 in the U.S. and Puerto Rico, per the report.


©2026 The Seattle Times. Visit seattletimes.com. Distributed by Tribune Content Agency, LLC.

 

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