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Costco Wholesale Corp. says it will return tariff refunds to its members if and when they are paid back by the United States government. <\/p>\n
Costco is among thousands of companies suing the U.S. federal government for a return of tariffs the government collected after the U.S. Supreme Court struck them down in February. <\/p>\n
Costco is also facing a class-action lawsuit in the U.S., arguing that any refunds it receives from the government should be paid to its members. <\/p>\n
Costco chief executive Ron Vachris said Thursday the retailer intends to pass down the money to members, though they have not received the federal refunds to date. <\/p>\n
\u201cOur plan is to return to our members in some form the portion of tariffs that were passed on to them,\u201d he said on an earnings call on Thursday. <\/p>\n
Vachris said the company has begun submitting tariff refund forms and expects payments on a rolling basis within the next few months. <\/p>\n
\u201cWhat we return and when depends on a variety of factors, including how much refund money we receive and when it arrives, as well as developments in the lawsuit filed against the company regarding the return process,\u201d he added. <\/p>\n
Overall, Costco beat expectations for the three months ending on May 10, with net sales of US$69.15 billion, up more than 11 per cent from a year ago. <\/p>\n
The retailer\u2019s gas division was a particular bright spot. It saw \u201crecord-breaking volumes\u201d as customers turned to Costco for discounted gas as prices have skyrocketed because of the war in Iran. <\/p>\n
\u201cWe believe this will drive even greater loyalty with these members in the future, as members who use our gas stations typically spend more with us in the warehouse,\u201d Vachris said. <\/p>\n
The popularity of weight loss drugs like Ozempic have benefited Costco\u2019s pharmacy division, where customers can typically receive a discount on expensive drugs. <\/p>\n
\u201cThe value that we\u2019re offering in our pharmacy is really helping members take advantage of those drugs in a very cost effective way,\u201d said Costco chief financial officer Gary Millerchip. <\/p>\n
These drugs have also spurred more high-protein focused diets, and Costco has taken notice. <\/p>\n