Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend and Plans for Membership Fee Increase

Rhea-AI Summary

Costco Wholesale (Nasdaq: COST) reported net sales of $24.48 billion for June, marking a 7.4% increase year-over-year, and net sales of $210.55 billion for the first 44 weeks, up 6.9% from last year. Comparable sales for 5 weeks were up 5.3% and 5.4% for 44 weeks. E-commerce sales saw significant growth, with an 18.4% increase over five weeks and 15.2% for 44 weeks.

Costco's Board of Directors declared a quarterly cash dividend of $1.16 per share, payable on August 9, 2024, to shareholders of record as of July 26, 2024. Additionally, Costco will increase membership fees effective September 1, 2024: U.S. and Canada Gold Star and Business memberships will go up by $5 annually to $65, while Executive Memberships will rise from $120 to $130. This fee hike will affect about 52 million memberships.

Costco operates 882 warehouses globally and several e-commerce sites across different countries.

Positive

• Net sales increased by 7.4% in June to $24.48 billion.
• Net sales for the first 44 weeks increased by 6.9% to $210.55 billion.
• E-commerce sales showed significant growth, up 18.4% in the last 5 weeks.
• Quarterly cash dividend of $1.16 per share announced, payable on August 9, 2024.
• Membership fee increases will impact 52 million memberships, potentially boosting revenue.

Negative

• Annual membership fee increase may lead to customer dissatisfaction or cancellations.

ISSAQUAH, Wash., July 10, 2024 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $24.48 billion for the retail month of June, the five weeks ended July 7, 2024, an increase of 7.4 percent from $22.78 billion last year.

Net sales for the first 44 weeks were $210.55 billion, an increase of 6.9 percent from $196.93 billion last year.

Comparable sales were as follows:

	5 Weeks		44 Weeks
U.S.	5.6%		4.4%
Canada	5.2%		7.3%
Other International	4.3%		8.5%
Total Company	5.3%		5.4%
E-commerce	18.4%		15.2%

Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows:

	5 Weeks		44 Weeks
U.S.	6.3%		4.8%
Canada	8.4%		8.1%
Other International	8.7%		8.1%
Total Company	6.9%		5.6%
E-commerce	19.1%		15.2%

Additional discussion of these results is available in a pre-recorded message. It can be accessed by visiting investor.costco.com (click on “Events & Presentations”). This message will be available through 4:00 p.m. (PT) on Wednesday, July 17, 2024.

The Company also announced today that its Board of Directors has declared a quarterly cash dividend on Costco common stock of $1.16 per share. The quarterly dividend is payable August 9, 2024, to shareholders of record at the close of business on July 26, 2024.

The Company also announced that, effective September 1, 2024, it will increase annual membership fees by $5 for U.S. and Canada Gold Star (individual), Business, and Business add-on members. With this increase, all U.S. and Canada Gold Star, Business and Business add-on members will pay an annual fee of $65. Also effective September 1, annual fees for Executive Memberships in the U.S. and Canada will increase from $120 to $130 (Primary membership of $65, plus the Executive upgrade of $65), and the maximum annual 2% Reward associated with the Executive Membership will increase from $1,000 to $1,250. The fee increases will impact around 52 million memberships, a little over half of which are Executive.

Costco currently operates 882 warehouses, including 609 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, seven in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

Certain statements contained in this document and the pre-recorded message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS:	Costco Wholesale Corporation David Sherwood, 425/313-8239 Josh Dahmen, 425/313-8254 Andrew Yoon, 425/313-6305

COST-Sales
COST-Comp

FAQ

What were Costco's net sales in June 2024?

Costco reported net sales of $24.48 billion for June 2024, a 7.4% increase year-over-year.

How much did Costco's net sales increase in the first 44 weeks of 2024?

Net sales increased by 6.9% to $210.55 billion for the first 44 weeks of 2024.

What is the new quarterly dividend declared by Costco?

Costco declared a quarterly cash dividend of $1.16 per share, payable on August 9, 2024.

When will the new membership fee increase take effect for Costco?

The membership fee increase will take effect on September 1, 2024.

How much will the Costco Executive Membership fee increase?

The Costco Executive Membership fee will increase from $120 to $130 annually.

What is the impact of the new membership fee increase on Costco?

The membership fee increase will impact around 52 million memberships, potentially raising significant revenue.

How have Costco's e-commerce sales performed recently?

Costco's e-commerce sales grew by 18.4% over the last five weeks.