Costco, Offset Tariffs
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Costco on Thursday reported fiscal third-quarter profit and revenue that topped Wall Street’s expectations, but its same-store sales came in a bit light, as analysts zero in on the impact of tariffs on retailers’ costs and consumer behavior.
Costco ( COST) reported mixed results on Thursday after market close as shoppers sought out value during the rollout of Trump's tariffs. Adjusted earnings per share came in at $4.28, beating estimates of $4.24. Revenue of $63.21 billion missed expectations of $63.31 billion.
What Analysts Are Saying: After a strong April sales figure from Costco, JPMorgan analyst Christopher Horvers reiterated an Overweight rating and raised the price target from $1,070 to $1,088.
Costco Wholesale missed analyst expectations for third-quarter revenue on Thursday and said it had pulled forward shipments of some goods it had planned to import this summer to lower the impact of U.
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In fact, according to the FDA, more than 200 countries and territories supply approximately 32% of the fresh vegetables and 55% of the fresh fruit that we consume in the U.S. "So if these categories are subject to tariffs, consumers can expect prices to go up – and relatively quickly as these things are perishable," McGrath says.
Some huge companies like Walmart and Costco will eat some of those costs and maybe be able to force their vendors to do the same. Despite that, prices are going to rise and that's something which has many Americans tightening their hold on their wallets.