Costco lowers prices on selected Kirkland Signature items following Q3 earnings call

Costco said it lowered prices on several Kirkland Signature private-label items after executives discussed the moves during the company’s fiscal third-quarter earnings call on May 28, 2026. The reductions highlighted Costco’s ongoing focus on member value, even as the retailer works through cost pressures that can affect margins across categories.

The price changes cited by management covered four Kirkland Signature products and ranged from $1 to $10: Kirkland Signature Crispy Wings dropped from $16.99 to $14.99, Kirkland Signature Milk Chocolate Almonds moved from $19.99 to $18.99, Kirkland Signature golf balls fell from $32.99 to $29.99, and Kirkland Signature king-size sheets decreased from $89.99 to $79.99. Kirkland Signature items are Costco’s in-house brand, which typically gives the company flexibility to price aggressively versus national brands.

On the call, Costco framed the actions as part of a broader pricing philosophy. Management reiterated that its goal is “to be the first to lower prices and last to raise them,” adding that buyers use their experience to reduce impacts on member prices when opportunities show up. Executives also said they are monitoring longer-term inflationary effects tied to higher oil prices and possible tariff impacts, suggesting that pricing decisions may continue to shift as input costs change.

The pricing commentary came alongside Costco’s third-quarter operating results for the 12 weeks ended May 10, 2026. Costco reported net sales of $69.15 billion, up 11.6% from the prior year period, and net income of $2.19 billion, up 15%. Comparable sales for the total company were 9.8% for the quarter, with digitally-enabled sales increasing 21.5%, according to the company’s earnings release.

Costco’s quarterly update also pointed to margin tradeoffs. In management’s discussion of results, the company reported gross margin at 11.04%, down 21 basis points year over year, and cited lower margins in fresh and food and sundries, along with transportation costs affected by higher gas prices. The timing of these margin pressures may be one reason Costco’s executives emphasized selective price reductions rather than a broad, category-wide reset.

For Costco, price actions on private-label goods can matter disproportionately because Kirkland Signature helps differentiate the shopping experience and supports repeat buying. When Costco chooses to lower prices on familiar, high-visibility products, it can reinforce the value message that underpins membership loyalty. At the same time, Costco operates on thin retail margins by design, so even modest pricing decisions can ripple through gross margin trends and investor expectations.

Still, details remain limited. In the earnings materials and the quoted examples discussed on the call, Costco did not provide a complete inventory of which Kirkland Signature items are currently discounted, how long each markdown will last, whether the changes apply uniformly across all warehouses, or what specific financial impact the price cuts had on the quarter’s results. That means members and analysts will have to infer the broader direction from future updates.

Going forward, investors will likely watch whether Costco expands similar price moves in subsequent quarters and how it balances value initiatives with margin stability. The company’s next earnings report may also provide more clarity on whether inflation and tariff-related uncertainty continues to push price actions toward the high-profile private-label items highlighted this quarter.