Costco’s Earnings Top Expectations in First Results Reflecting Membership Fee Hike

Costco Wholesale (COST) reported fiscal first-quarter earnings that beat analysts’ expectations, in its first quarterly results reflecting the impact of its hike in membership fees.

The membership-based retailer saw revenue grow 7.5% to $62.15 billion, just above the analyst consensus from Visible Alpha. Net income of $1.8 billion or $4.04 per share was up from $1.59 billion or $3.58 per share a year earlier and exceeded expectations.  

Costco’s e-commerce sales increased 13%, while same-store sales were up 5.2% in the U.S. and 5.8% in Canada. 

The quarter marks the first reflecting Costco’s increased membership fees that went into effect in September. However, executives said last quarter that the impact will likely be weighted to the back half of fiscal 2025.

Costco shares gained 1% in extended trading Thursday following the release. They were up 50% for 2024 through Thursday’s close, a day after after the stock hit an all-time high close of $994.69.