Revenue and membership numbers increase due to the increase in fees

Costco got off to a good start to the holiday shopping season as the retailer posted higher sales ahead of Black Friday and the official start of consumers’ seasonal shopping.

The members-only warehouse company also boosted its revenue through higher membership fees, which it began in September — its first membership fee increase in seven years.

Costco reported net sales of $61 billion, up 7.5% for the first quarter of fiscal 2025, compared with $56.7 billion a year earlier, the company said Thursday. The three-month period ended on November 24th, a week before Black Friday.

“The seasonal selloff appears to be very strong,” said Gary Millerchip, chief financial officer and executive vice president of Costco, during a call with investment analysts Thursday. “People are shopping very easily this year, but there are good trends.”

Membership fee revenue rose 7.6% to $1.17 billion, from $1.08 billion a year earlier, the company said.

Holiday offers: Shop this season’s top products and special offers, curated by our editors.

The price of an annual Costco membership increased from $60 to $65 for Gold Star memberships in the US and Canada and from $120 to $130 for Executive memberships, with the maximum annual premium of 2% for the Executive Membership increased from $1,000 to $1,250.

Costco reported sales of $62.15 billion, up 7.5% from a year earlier. That’s more than the $61.9 billion estimated by Wall Street analysts in a survey by S&P Global Market Intelligence.

Membership fees brought in $4.8 billion in the previous fiscal year ended Sept. 1, 2024, and $1.5 billion in the previous three months, the company reported in September.

The company said it now has 77.4 million paid memberships, an increase of 7.6%. Almost half (47%) were board memberships.

More shoppers came to Costco

Costco, which sells products in bulk and offers discounts on groceries, including eggs, for as little as $3, continued to see sales growth as consumers remain concerned about prices.

Given the shortened holiday shopping season, Costco joined other retailers in holding pre-Black Friday sales in early November. Store traffic increased 5.1% in the period, while comparable tickets (total retail sales) increased 0.1%, the company said.

“As consumers of all income levels continue to value value, Costco is benefiting from robust membership growth and generating additional revenue through the recent increase in membership fees,” Sky Canaves, chief retail and e-commerce analyst at eMarketer, told USA TODAY.

“Among the major U.S. retailers we track, Costco is one of the few that can boast significant above-average e-commerce growth in 2024,” Canaves said. “The company is starting with a small base and has a long way to go to grow its online business with additional revenue opportunities through the marketplace and retail media network.”

Costco Manager: Selling gold bars and precious metals drives traffic

Costco reported a 13% increase in e-commerce sales in the quarter, with top e-commerce sales categories including gift cards, hardware, home furnishings, health and beauty aids, sporting goods, and gold and jewelry. The company successfully sells gold bars, silver coins and recently platinum bars.

Costco members can purchase gold bars (current price: $2,749.99), platinum bars ($1,049.99) and silver coins ($649.99) on the site.

Owning precious metals has driven “significant traffic” to the company’s website and “our ability to grow our overall digital business,” Millerchip said.

In the previous quarter, Costco reported an increase in sales, but it wasn’t as high as Wall Street had expected, suggesting that consumers were anxious about spending.

The company’s shares, which have risen 51% so far this year, rose nearly 1% in extended trading.

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