Costco (COST) on Wednesday announced its first membership-price increase in seven years. Members are looking at a $5 increase, to $65 annually, for the Gold Star membership and a $10 increase, to $130, for the Executive membership.
Costco has increased its membership fee for the first time in several years.
After Costco (COST) said Wednesday it plans to raise membership fees for the first time in seven years, several analysts raised their price targets for Costco stock, anticipating the higher fees could boost the retailer's bottom line.
Shares of the warehouse retailer have always commanded a premium, and for good reason, but at more than 50 times forward earnings, they're in new, eye-watering territory.
Retailer Costco Wholesale Corporation COST announced a membership fee increase Wednesday after market close.
Costco's retail business is massive but it's not the primary money-maker. The company has a huge membership base and world-class renewal rates thanks to offering its customers good bargains.
Costco Wholesale Corporation (NASDAQ:COST) yesterday raised membership prices in North America for the first time since 2017.
Costco's (COST) distinctive membership business model and pricing power set it apart from traditional players. Comparable sales for the retail month of June rise 5.3%.
For the first time since 2017, Costco (NASDAQ: COST ) will raise its membership fees in the U.S. and Canada. The annual cost of the giant retailer's regular membership will climb by $5, while the price of its upper-tier plan will increase by $10 per year.
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Costco has been demonstrating incredible resilience despite inflation. It issued a special dividend in January.
Those looking to get a Costco membership might want to do so before Sept. 1, when the company plans to raise the price for both gold and executive options.