1331 ET - Costco will likely gain market share as retailers face increasing pricing pressures from tariffs, Baird analysts say in a research note. The warehouse-club chain expressed confidence in navigating the fluid tariff environment, having taken mitigation steps such as pulling forward seasonal items, re-routing goods from high-tariff countries to non-U.S. markets and sourcing more items domestically, the analysts say. They note that about one-third of the company's U.S. goods are imported, with about 8% coming from China. Costco has raised some prices where necessary. "However, lower commodity costs have allowed Costco to reduce prices on key SKUs (eggs/butter/olive oil) while also realizing some outsized core margin gains," the analysts say. Shares rise 3.6%.(connor.hart@wsj.com)
(END) Dow Jones Newswires
May 30, 2025 13:31 ET (17:31 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.