Shoppers wait in a check-out line at a Costco wholesale store in Orlando, Florida.
Paul Hennessy | Sopa Images | Lightrocket | Getty Images
Costco remains to be holding off on raising its membership fees after reporting fiscal fourth-quarter results that beat expectations.
The retailer typically raises fees around every five years, but hasn’t said when it should achieve this again after rival Sam’s Club hiked its fees in late August. On Thursday, Richard Galanti, the corporate’s chief financial officer, noted Costco hasn’t reached its typical milestone for a hike.
“When you have a look at June of ’17, plus five years and 7 months, you are talking roughly January ’23,” Galanti said during an earnings call with investors. “Now I’m not suggesting it’s January ’23. I’m just saying it isn’t there yet.”
A Costco membership costs $60 a yr, or $120 a yr for an executive membership that comes with additional perks.
In the course of the quarter ended Aug. 28, Costco said the variety of its members increased and that executive members now account for a record 44% of total membership.
For the quarter, Costco reported higher revenue of $72.09 billion, which was barely above the $72.04 analysts expected. Earnings per share rose from a yr ago to $4.20, beating estimates of $4.17.
Gross margins declined within the quarter as inflation drove up costs.
Shares of Costco were down 2% in Friday morning trading.
Costco has kept its prices competitive and even maintained the value of its $1.50 hot dog combo meal as inflation pressures shoppers. Galanti noted a small uptick for the corporate’s private Kirkland brand products, but said the corporate is seeing a comparatively strong consumer.
“They don’t seem to be trading down. They’re trading up or definitely trading the identical,” Galanti said within the earnings call.