Costco Wholesale Corporation Reports Increased Sales in Latest Earnings Report

A closer look at Costco’s latest growth strategy has been revealed as the company recently pulled back the curtain on its earnings for the first 44 weeks of the year. In addition to reporting net sales of $210.55 for the period, Costco also announced plans to increase its annual member fees, effective September 1.

The fee will impact about 52 million members, according to a press release. The breakdown details:

• United States, Canada Gold Star, Business, and Business add-on memberships will rise to $65 annually
• Executive Memberships in the U.S. and Canada will increase from $120 to $130
• The maximum annual 2 percent reward associated with the Executive Membership will increase from $1,000 to $1,250

Along with this strategy update, Costco reported that its net sales increased by 6.9 percent to $210.55 billion for the first 44 weeks. June’s retail report also unveiled net sales of $24.48 billion, an increase of 7.4 percent from $22.78 billion last year.

Costco operates a total of 882 warehouses globally, 609 of which are in the U.S. and Puerto Rico, 108 in Canada, and 40 in Mexico.

With strong quarterly performance and a new membership strategy in place, what further growth will we witness across Costco’s operations?

DMN will be here to report on the latest.