Costco Wholesale late Wednesday announced its first membership fee hike since 2017. The warehouse chain, which also reported June sales, fell Thursday after rising overnight. BJ's Wholesale edged higher while Sam's Club parent Walmart declined slightly.
Costco Membership Fee Hike
Costco will raise the base membership fee in the U.S. and Canada by $5, to $65 a year, as of Sept. 1. The higher-end Executive Membership will rise by $10, to $130 a year.
Costco says it has some 52 million members, with just over half higher-end members.
In fiscal Q3 ending in May, Costco's membership fees accounted for two-thirds of net income. So the fee hikes will offer a clear boost to the bottom line.
Costco Sales
Costco reported June sales grew 7.4% vs. a year earlier. Comparable sales rose 4.3%, or 6.9% excluding gas prices and foreign exchange swings. U.S. comps climbed 5.6%, or 6.3% excluding items.
Costco Stock
Costco stock sank 4.3% to 846.59, tumbling to below the 21-day line.
Costco stock cleared a three-weeks-tight last Friday with a 873.96 add-on entry for existing investors.
BJ's Wholesale stock rose 1.1%. Shares have been trading tightly for seven weeks, rebounding last week from the 10-week line.
Walmart stock fell 0.9%, trading at all-time levels.
PriceSmart Beats Views
Separately, PriceSmart, a membership warehouse club operator that operates in the Caribbean, Central America and Colombia, reported better-than-expected fiscal third-quarter earnings, with revenue slightly topping as well.
PSMT stock climbed 2.5% to 80.23 but well off an early move to the 50-day line. PriceSmart has an official flat-base buy point of 87.99. But shares have moved sideways for more than a decade.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
