D.A. Davidson Companies’ Post

Costco's recent membership fee increase had little effect on quarterly results, says Michael Baker of D.A. Davidson. Mixed earnings but strong margins and e-commerce growth highlight resilience.

Costco Membership Fee Price Increases Coming September, 2024 Costco Wholesale is raising its membership fees for the first time since 2017! Starting September 1, 2024, the Gold Star Membership will increase by $5 (from $60 to $65), and the Executive Membership will go up by $10 (from $120 to $130). This change is expected to bring in an additional $265 million annually, leveraging Costco's massive member base of around 65 million households. Despite the fee hike, I believe Costco Wholesale's strategy remains strong and continues to deliver exceptional value to its members. What are your thoughts on this change? Will this affect your Costco membership. #Costco #Membership #RetailStrategy #BusinessGrowth #Inflation

On Yahoo Finance today talking about Costco Wholesale’s membership fee hike!

Costco Wholesale is raising its fees by about 10%. Compared with the 20% to 40% inflation we've seen in everything else over just the last 3 years, this isn't unreasonable. This may still sound like a money-grab to some folks, but not us. We used to have the executive membership ($120/mo), but the Costco customer service counter took a quick look at our account and recommended proactively that we downgrade to the basic membership ($60/mo), as we were no longer buying enough to justify it. It's the rare business that will "lose the battle but win the war." Another is AT&T, which has demonstrated time and again its willingness to reverse unintended charges, even if they were due to our forgetfulness or inattention. #loyalty #retail #customerexperience https://lnkd.in/ev6jBvM5

As a consumer, I'm surprised by Costco raising its membership fees during the current high inflation rates. However, from a business perspective, the increase will generate more revenue that Costco can invest in improving its stores and services, enhancing the shopping experience and maintaining competitiveness. However, Costco members might choose not to renew their memberships if they find the higher fees too burdensome, especially in uncertain economic times. To handle the fee increase effectively, Costco should emphasize improved value through consider gathering member feedback, and providing incentives for early renewals to maintain member satisfaction and loyalty.

Costco beats on earnings as membership fee hike boosts revenue by Costco in September increased its annual membership fee, helping to increase revenue from the prior year.

Given the current state of living costs going up, this was bound to happen. As much as there are great deals sold at Costco compared to other retailers, contrary to belief, most consumers spend more money there than other places, volume-wise. Nevertheless, longtime Costco members know the types of merchandises to buy in order to get their money's worth (not to mention their incredible return policies), all of which makes the membership pricing very little in the long run. https://lnkd.in/gx2W9jNP

Costco beats on earnings as membership fee hike boosts revenue by Costco in September increased its annual membership fee, helping to increase revenue from the prior year.

Costco on Thursday beat Wall Street's quarterly earnings and sales estimates, as it got a boost in part from higher membership fees. Here's how the warehouse club did for the fiscal first quarter compared to what Wall Street expected, according to a survey of analysts by LSEG: In the three-month period that ended Nov. 24, Costco's net income rose to $1.80 billion, or 4.04 per share, from $1.59 billion, or $3.58 per share in the year-ago period. Revenue increased from $57.80 billion in the year-ago period.