Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

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

Friday, March 3, 2017 7:10
% of readers think this story is Fact. Add your two cents.

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


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.