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Refinancing at Current Rates Doesn’t Make Sense

Q&A with Costco CFO Richard Galanti.

By Nina Trentmann | November 02, 2023 at 12:05 PM
Photo: Shoppers outside a Costco store in New York. Photographer: Bing Guan/Bloomberg Shoppers outside a Costco store in New York. Photographer: Bing Guan/Bloomberg

Costco Wholesale Corp.’s Richard Galanti, who has served as CFO of the warehouse club retailer since 1985, says he views the more-than-decade-long period of low interest rates in the United States as an anomaly.

Finance chiefs at many companies face a balancing act due to recent increases in financing costs, according to Galanti, one of the longest-serving CFOs at an S&P 500 company. Costco is considering repaying a $1 billion bond maturing in 2024 with cash and won’t be buying back any debt ahead of its maturity, he said, adding that refinancing at current rates doesn’t make sense.

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