0833 ET - Costco's margins were pressured during the latest quarter, as the warehouse retailer made investments to lower prices on some everyday items, including eggs and beef. Core-on-core gross margin declined, breaking a four-quarter streak of increases, Morgan Stanley analysts say in a research note. However, they're not too worried about it, as many other large-cap peers are taking the same margin hit in order to increase their value proposition. "We believe Costco is one of the best positioned operators to translate price investments into market share gains, particularly as macro headwinds build and consumers seek value," the analysts write. (connor.hart@wsj.com)

(END) Dow Jones Newswires

May 29, 2026 08:33 ET (12:33 GMT)

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