Costco Stock Falls After Announcing Membership Fee Increase

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.