By Wesley Brown

Costco Wholesale Corp. posted strong fiscal third-quarter results on May 29, stating that it is navigating the evolving economic environment by collaborating closely with vendors and global suppliers to mitigate the impact of tariffs and inflation on costs.

During the company’s conference call with analysts after market close, Costco CEO Ron Vachris said the retail giant, with nearly 1,000 warehouse locations worldwide, is leveraging its size by shifting production and sourcing to other countries where it makes sense to do so.

“As we look ahead to the remainder of the fiscal year, while the impacts of tariffs and the outlook for the economy in general remain unknown, we are confident in the ability of our operators and merchants to rise to the challenges and continue to offer great service and find consistent values for our members,” he said.

Across its global footprint, Costco reported that one-third of the goods it sold in the United States during the fiscal third quarter were imported. China accounted for only about 8 percent of those sales, Vachris emphasized.

In detailing the company’s ability to lower costs and mitigate the potential impacts of tariffs on customers and its operations, Vachris and Chief Financial Officer Gary Millerchip told analysts that the company rerouted many sourced goods with high tariff exposure to non-U.S. markets during the third quarter of fiscal year 2025, which ended on May 11.

In the United States, they said that Costco also pulled forward some items planned for the summer and sourced additional locally produced goods to ensure the warehouses were fully stocked, including the company’s Kirkland Signature private brand.

“Actions such as these are allowing us to continue to provide great values for our members while also delivering value to our shareholders,” Vachris said.

During the quarter, customer spending on gold and jewelry, toys, housewares, and home furnishings saw double-digit sales growth. To support those purchases, Costco launched a new buy-now-pay-later service with Affirm, giving members greater access to exclusive rates on big-ticket items such as appliances, furniture, and consumer electronics.

“At Costco, we remain committed to providing quality items at the lowest possible prices and raising prices is always seen as a last resort,” Millichip said. “But we believe our expertise in buying and limited [inventory] count model give us greater agility to navigate the environment and ultimately increase our member values compared to the market.”

In the third quarter, Costco reported a net income of $1.9 billion, or $4.28 per share, representing a 13 percent increase from $1.68 billion, or $3.78 per share, in the same quarter of fiscal 2024. Revenue for the quarter rose by 8 percent to $63.2 billion from $57.39 billion the previous year.

Adjusted same-store sales rose 8 percent, while adjusted e-commerce revenue jumped 15.7 percent year over year. Analysts surveyed by FactSet had expected the Issaquah, Washington-based company to report quarterly earnings of $4.09 per share on revenue of $63.72 billion.

Unlike most U.S. mass merchandise retailers—including rivals Target, Walmart, and its warehouse subsidiary, Sam’s Club—Costco does not provide a yearly outlook for its earnings and sales. However, Vachris noted that the company will continue to expand its global presence, invest in its e-commerce business, and increase its digital membership base. In fiscal 2024, nearly 137 million people paid for a Costco membership.

For fiscal 2025, the company expects to open 27 new warehouses, including three relocations, bringing the total number of membership clubs worldwide to 940, including 647 in the United States. Costco also operates e-commerce sites in the United States, Canada, the UK, Mexico, Korea, Taiwan, Japan, and Australia.

During the May 29 trading session on the Nasdaq, Costco shares closed at $1,008.74, down 0.43 percent. The stock has gained 25.07 percent over the past 12 months, surpassing the $1,000 mark several times this year as some investors seek a stock split. In after-hours trading following the company’s earnings report, Costco shares fell by 0.38 percent, to $1004.94.