Costco is Raising Its Membership Fees
Costco (COST) is raising membership fees.
On Thursday, the wholesale retailer announced it would raise the price of its Goldstar membership by $5 per year to $60. Its Executive membership fee will rise by $10 a year to $120.
These new fee increases will be effective June 1, 2017. Costco last raised membership fees in November 2011.
In a note to clients earlier this week, analysts at UBS speculated the company could raise its membership fees in the second quarter. This forecast turned out to be dead on.
Elsewhere in Costco’s release, the company reported earnings and revenue that both missed expectations.
Earnings per share came in at $1.17, below the $1.36 expected by Wall Street analysts. Revenue came in at $29.13 billion, below expectations for $29.86 billion.
Same-store sales were also a disappointment, rising 3% against expectations for a 3.5% increase. Same-store sales in the U.S. were up 3% during the quarter and were up 8% in Canada during this period, thought other international same-store sales fell 2%.