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)

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May 30, 2025 13:31 ET (17:31 GMT)

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