Costco Wholesale Corp. is aiming to decrease its reliance on Canadian products in its US stores due to tariffs imposed by US President Donald Trump. CEO Ron Vachris stated that consumers can expect price increases on items imported from Canada, China, and Mexico, but the company is also looking to source more products from non-tariffed nations to reduce costs. Costco sources less than 20% of its products from Canada, China, and Mexico for its US locations.
Adjusted net sales increased 9.1% to US$57.3 billion in the three months ending February 16, with earnings per share missing analysts’ expectations of US$4.10. Adjusted sales in 109 Canadian stores climbed 10.5%. Costco’s chief financial officer, Gary Millerchip, said the results reported in February were in line with the current results, with the strongest overall sales when accounting for currency exchange and gas.
Source: Financial Post
