Costco Raises Membership Fees for First Time in 7 Years

Costco (COST) said it is raising its rank fees for nan first clip since 2017, sending nan retailer's banal higher successful extended trading Wednesday.

Costco is hiking its "Gold Star" and business rank fees successful nan U.S. and Canada by $5 to $65, while executive rank fees will emergence $10 to $130. The institution besides said that nan maximum yearly 2% reward associated pinch nan executive rank will emergence to $1,250 from $1,000.

The interest increases are expected to effect astir 52 cardinal memberships, and will spell into effect from Sept. 1.

Higher Membership Fees To Boost Costco's Revenue

The rank hikes bring an extremity to speculation astir erstwhile nan institution would move to raise fees, aft agelong hinting successful net calls it would beryllium a matter of "when, not if," they increase.

The hike is expected to springiness Costco a gross boost that CEO Ron Vachris suggested successful May would springiness nan institution an added cushion allowing it to little prices connected products successful its stores and connection greater worth to customers.

Costco reported 74.5 cardinal members astatine nan extremity of its fiscal 3rd quarter, up from 73.4 cardinal successful nan 2nd quarter, and 69.1 cardinal a twelvemonth earlier.

Costco's Sales Surge 7.4% successful June From a Year Ago

Along pinch announcing higher rank fees, Costco reported nett income for nan period of June surged 7.4% from a twelvemonth agone to $24.48 billion. Net income for nan first 44 weeks of nan twelvemonth were up 6.9% year-over-year astatine $210.55 billion.

Shares of Costco were 2.4% higher astatine $905.35 successful extended trading arsenic of 7:15 p.m. ET Wednesday pursuing nan news. They've gained adjacent to 34% truthful acold this twelvemonth done Wednesday’s close.