Shoppers wait in line to check out at a Costco wholesale store in Orlando, Florida.
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Costco is still delaying its membership fee hike after reporting fourth-quarter financial results that beat expectations.
The retailer usually raises fees about every 5 years, but has not said when they will do so again after rival Sam’s Club raised fees at the end of August. On Thursday, Richard Galanti, the company’s chief financial officer, noted Costco has yet to hit a typical milestone for raising prices.
“If you look at June ’17, plus five years and seven months, you’re talking about January ’23,” Galanti said on an earnings call with investors. “Now I’m not suggesting it’s January ’23. I’m just saying it hasn’t arrived yet.”
A Costco membership costs $60 a year or $120 a year for an executive membership that comes with additional perks.
For the quarter ended August 28, Costco said its membership grew, and executive members now account for a record 44% of total membership.
For the quarter, Costco reported higher revenue of $72.09 billion, slightly above the $72.04 expected by analysts. Earnings per share rose from a year ago to $4.20, beating estimates of $4.17.
Gross margin declined during the quarter as inflation increased costs.
Shares of Costco fell 2% in Friday morning trading.
Costco has kept its prices competitive and even maintain price of sausage combo meal $1.50 when inflation puts pressure on shoppers. Galanti noted a small increase in the company’s private Kirkland brand products, but said the company is seeing a relatively strong consumer base.
“They’re not trading down. They’re trading bullish or certainly trading the same,” Galanti said on the earnings call.
