42 articles | last updated: Jul 12 19:25:03
The retailer's modest fee hike, its first in seven years, fails to impress investors despite strong renewal rates.
- Costco raises annual membership fees by $5 for Gold Star and $10 for Executive members starting September.
- The fee increase is the company's first since 2017, affecting 52 million members in the US and Canada.
- Despite initial market enthusiasm, Costco shares dropped 4% by the end of the trading day.
- Analysts suggest the modest hike was expected and less than anticipated, contributing to the stock decline.
- Costco's membership fees, though small in percentage of total revenue, significantly impact its operating profit.
People, Places and Things In This Story
- Costco Warehouse store company
- Canada Country in North America
- United States Country in North America
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