Costco Announces Q2 Results, Raises Membership Fee
- by Jordan Okumura
ISSAQUAH, WA – Costco Wholesale Corporation has announced the operating results for the second quarter of its 2017 fiscal year—and with them, a large-scale rise in membership fees.
Included in its quarterly report were the company’s plans, effective June 1, 2017, to increase annual membership fees by five dollars for “Primary” Members—U.S. and Canada Goldstar members, Business, and Business add-on members. These members will pay $60 annually.
Additionally, annual fees for Executive Memberships in the U.S. and Canada will increase from $110 to $120, and the maximum annual 2% award associated with Executive Membership will also increase from $750 to $1,000.
These fee increases are expected to impact roughly 35 million Costco members—roughly half of them Executive Members.
Highlights from the report included:
- Net sales for the quarter increased six percent—from 27.57 billion last year to 29.13 billion
- Year-over-year comparable sales were up 3 percent across the board, with a 3 percent increase in the U.S., an 8 percent increase in Canada, and a 2 percent decrease in other international markets
- Net income for the quarter was $515 million, or $1.17 per diluted share, compared to $546 million, or $1.24 per diluted share, last year.
The company also noted that its immediate financial circumstances were strong. During the four-week reporting month of February, ended February 26, 2017, the company reported net sales of $8.92 billion, an increase of eight percent from $8.28 billion during the similar four-week period last year.
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