Costco Wholesale Corp. reported its second-quarter earnings on Wednesday. While the retailer delivered strong results, analysts wanted to know how the retailer would handle higher costs for some goods. The company's Chief Financial Officer, Richard Galanti, discussed the issue.
QUESTION: Can you just dig into a little bit the fresh-food margins being down? Is that because you guys haven't been willing to pass on the price increases? And then I guess looking ahead, do you expect to see similar pressure over the next couple of quarters, because obviously those costs are going to continue to rise here?
RESPONSE: Yes, I mean it is us more than anything. When you look at — I'm making these exact numbers up — but if you look at a 15-pack of muffins or something … we sell a heck of a lot of those to restaurants and businesses and convenience stores.
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