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Club-based retailer CostCo hikes membership fees as second quarter profits and sales decline

Friday, March 3, 2017 7:10
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(Before It's News)

Club-based retailer Costco Wholesale Corp (NASDAQ:COST) is raising its membership prices after reporting lower-than-expected quarterly sales and profits amid fierce competition in the US grocery market.

Costco said it would raise annual fees by US$5 to US$60 for its Goldstar and business members and by US$10 to US$120 for executive memberships from June 1 this year.

The fee increases will impact around 35 mln members, roughly half of them executive members, the company said.

Membership fees accounted for about 72% of Costco’s operating income in 2016, according to the company.

In the second quarter of its current year to February 12, CostCo’s net income fell to US$515mln, or US$1.17 per share, down from US$546mln, or $1.24 per share a year earlier.

Costco’s total same-store sales rose 3% in the second quarter, excluding the impact of changes in gasoline prices and foreign exchange.

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/174227/club-based-retailer-costco-hikes-membership-fees-as-second-quarter-profits-and-sales-decline-174227.html

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