Costco hikes membership fees, tweaks pricing

Costco Wholesale Corporation (NASDAQ:COST) marked 52-week highest price level of $178.71 on 03/01/17 and 52-week lowest price level of $137.40 on 05/18/16.

Retail giant Costco Wholesale (NASDAQ:COST) has been an innovator in the big-box retail industry, pioneering and refining the warehouse-shopping concept and honing it into a hugely successful business.

Beginning June 1, individual members of the wholesale warehouse in the US and Canada see their annual fees increase from $55 to $60.

Annual executive membership fees in the US and Canada will go up from $110 to $120.

Costco Wholesale (cost) on Thursday announced a membership fee hike, even as it reported disappointing revenues and profit for its second fiscal quarter.

The company delivered earnings of $1.17 a share for the February quarter that fell short of analyst’s estimate by 18 cents a share. Comparable sales were up 3%, missing expectations for a 3.5% increases. The stock was sold at an average price of $158.93, for a total value of $1,861,864.95. Gross margin contracted by 24 bps y/y to 11.0% (vs. consensus of 11.4% and its estimate of 11.3%) primarily due to lower gas margins, higher gas mix, and price investments. Following the transaction, the vice president now directly owns 7,123 shares of the company’s stock, valued at $1,152,002.79.

COST stock fell 4.2% on the news.

Costco Wholesale Corporation (NASDAQ:COST) [Trend Analysis] considering as most desiring stocks in active trading lead, shares knocked up after opening to traded at $177.98 with volume of 3.05 Million shares.

Costco last raised its membership fees in 2011.

Costco shares were down 4.5 percent in after-hours trading after the earnings report was released. Costco said it expects the fee increases to impact 35 million members, half of them being executive members.

Buying 60 rolls of toilet paper at Costco is about to get more expensive. The average twelve-month target price among brokers that have covered the stock in the a year ago is $177.64.

As of current trade, Costco Wholesale Corporation (NASDAQ:COST) has shown weekly upbeat performance of 1.21%. Hosking Partners LLP increased its position in shares of Costco Wholesale Corporation by 14.8% in the second quarter.

EPS in next five year years is expected to touch 10.38% while EPS growth in past 5 year was 10.10% along with sales growth of 6.00% in the last five years.

Costco Wholesale Corporation (NASDAQ:COST) To Release Earnings




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