Short COST going into earnings.

Sup autist. Costco is not passing inflationary pressures on to customers... Last earnings transcript has this: ​ Michael Lasser -- UBS -- Analyst Good evening. Thanks a lot for taking my question. Richard, your point about 4% to 5% inflationary increase across the assortment. Typically, Costco has been slower to raise prices than everyone else. That seems to be a number that's in line with others across the retail sector. So, has the posture changed with respect to passing along price increases? Why is that the case? And does Costco have more pricing power today than it ever has in the past given the pricing gaps between you and others in the market? Richard Galanti -- Executive Vice President and Chief Financial Officer Well, I think as it relates to passing on, we've always said we want to be the last to raise the price and the first to lower the price, recognizing there's a limit to what you can do based on these cost increases. First and foremost, I think because of our relative purchasing power and our relationships with our vendors, we, with our suppliers, work to mitigate those increases in any way, shape or form we can. Ultimately, that may include us taking a little less markup and maybe them taking a little less markup. There's no complete consistent answer throughout, as you might expect. ​ We saw this prove to be a bad thing for HD. https://preview.redd.it/y1b261ynxfj81.png?width=1650&format=png&auto=webp&s=4ee427d3147d392de1f455e93c15e7ae95d00d39 ​ https://preview.redd.it/90mk2laqxfj81.png?width=1640&format=png&auto=webp&s=0e75b668e630b7e40af1cb8515b5b9967902325c ​ https://preview.redd.it/eh2rsvctwfj81.png?width=1454&format=png&auto=webp&s=1d80377c616f9be31ca4a889f4b94f0a7c209373

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Short COST going into earnings.

bearish

Sup autist. Costco is not passing inflationary pressures on to customers... Last earnings transcript has this:

Michael Lasser -- UBS -- Analyst

Good evening. Thanks a lot for taking my question. Richard, your point about 4% to 5% inflationary increase across the assortment. Typically, Costco has been slower to raise prices than everyone else.

That seems to be a number that's in line with others across the retail sector. So, has the posture changed with respect to passing along price increases? Why is that the case? And does Costco have more pricing power today than it ever has in the past given the pricing gaps between you and others in the market?

Richard Galanti -- Executive Vice President and Chief Financial Officer

Well, I think as it relates to passing on, we've always said we want to be the last to raise the price and the first to lower the price, recognizing there's a limit to what you can do based on these cost increases. First and foremost, I think because of our relative purchasing power and our relationships with our vendors, we, with our suppliers, work to mitigate those increases in any way, shape or form we can. Ultimately, that may include us taking a little less markup and maybe them taking a little less markup. There's no complete consistent answer throughout, as you might expect.

We saw this prove to be a bad thing for HD.







read-time
1 min
500.00
Target Price
4/ 10
Confidence
6-12 Months
Timeframe
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Earnings Release
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News
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SEC
Filing
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