Costco Reports Strong Sales Growth and Announces Membership Fee Increase

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Costco Reports Strong Sales Growth and Announces Membership Fee Increase

Costco Reports Strong Sales and Announces Membership Fee Increase

Costco Wholesale Corporation (COST) shares are trading higher in Wednesday's after-hours session following the company's announcement of strong sales results for June and a planned membership fee increase.

For the retail month of June, Costco reported net sales of $24.48 billion, representing a 7.4% increase year-over-year. Net sales for the first 44 weeks of the year reached $210.55 billion, marking a 6.9% year-over-year increase.

Total comparable sales rose by 5.3% in June, while e-commerce sales surged by 18.4%. U.S. comparable sales increased by 5.6%, Canadian comparable sales grew by 5.2%, and Other International sales rose by 4.3%.

Effective September 1st, Costco will be increasing its annual membership fees by $5. This will bring the annual fee for U.S. and Canada Gold Star (individual), Business, and Business add-on members to $65. Executive memberships will increase from $120 to $130. The fee increase will impact approximately 52 million memberships, half of which are Executive.

The company also announced a quarterly cash dividend of $1.16 per share, payable on August 9th to shareholders of record as of July 26th.

Costco currently operates 882 warehouses, including 609 located across the United States.

Following the announcement, COST shares were up 2.34% after hours at $905.