Costco cuts Kirkland prices using $184M in tariff refunds

Costco Wholesale Corporation lowered prices across several everyday Kirkland Signature products during the fourth quarter of fiscal 2026. The company reduced KS Walnuts to $9.99 from $13.79, Colombian Whole Bean Coffee to $19.99 from $21.99, Dry Facial Towels to $18.99 from $19.99, and Coarse Black Pepper to $5.99 from $6.99. Management noted that Kirkland Signature typically offers savings of at least 15% to 20% compared with national-brand equivalents.

The price reductions were supported in part by tariff refunds. Costco received $184 million during the quarter, consisting of $174 million in refunds and $10 million in interest. The company reinvested a portion of these proceeds into member value and stated that it plans to reinvest the majority of any future tariff refunds.

Over the past three months, Costco shares fell 3.1%, while its industry declined 2.3%. Among competitors, Dollar General shares rose 2.3% and Target shares gained 23.8% over the same timeframe.

The Zacks Consensus Estimate projects Costco sales to grow 8.3% and earnings per share to increase 11.8% in the current fiscal year. For the next fiscal year, consensus estimates anticipate 7.2% revenue growth and a 9.1% rise in earnings. Over the past 30 days, current fiscal-year earnings estimates rose by 36 cents to $22.87 per share, while next-year estimates increased by 45 cents to $24.94 per share.