Costco Maintains Membership Fees After Earnings Beat Expectations

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Costco isn’t yet hiking its membership fees after reporting quarterly results that topped expectations.

A Costco membership costs $60 a year, or $120 a year for an executive membership that comes with additional perks.

During the quarter ended Aug. 28, Costco said the number of its members increased and that the proportion of executive members now account for a record 44% of members. For the quarter, Costco reported higher revenue of $72.09 billion, which was slightly above the $72.04 analysts expected. Earnings per share rose from a year ago to $4.20, beating estimates of $4.17.Gross margins declined in the quarter as inflation drove up costs.Costco has kept its prices competitive and evenas inflation pressures shoppers. Galanti noted a small uptick for the company's private Kirkland brand products, but said said the company is seeing a relatively strong consumer.

"They're not trading down. They're trading up or certainly trading the same," Galanti said in the earnings call Thursday.

 

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