Costco Wholesale Corp. (COST) saw its stock plummet 5.07% in pre-market trading on Friday, following a mixed fiscal second quarter earnings report. The warehouse retailer reported earnings of $4.02 per share, missing analyst estimates of $4.09, despite revenue of $63.7 billion slightly exceeding projections of $63.1 billion. Same-store sales rose a better-than-expected 6.8%.

A key concern for Costco is the potential impact of tariffs on its business. The company acknowledged that approximately one-third of its U.S. sales are from imported goods, with less than half of those coming from China, Mexico, and Canada – countries that could be affected by the Trump administration's tariff policies.

However, Costco executives expressed confidence in their ability to mitigate the effects of tariffs on consumers. "When it rains, it rains on everyone," said President and CEO Ron Vachris, referring to the widespread impact of tariffs. "But we are prepared," he added, stating that the company is "well equipped to lower prices and defer any cost increase" through its global buying power and strong supplier relationships.