Costco Wholesale Corp. reported a fall in gross margins on Thursday, hit by soaring freight and labor costs across the United States, sending shares of the membership-only retailer down 2 percent and overshadowing an otherwise upbeat quarterly report.
U.S. companies across the board have been struggling with higher costs due to supply chain disruptions, exacerbated by fresh COVID-19 lockdowns in China and the Russia-Ukraine war which came on top of “massive” government stimulus and unusually accommodative monetary policy from the U.S. central bank.
Costco said it was increasing prices in certain areas of food to combat inflation.
Retailers like Walmart Inc. and Target Corp. have warned of decades-high inflation hitting their profits, with customers refraining from buying non-essential and high-margin products….