STOXPO
  • Latest News
  • Technology
    • Software
    • Semiconductors
  • Healthcare
    • Biotechnology
    • Pharmaceuticals
  • Crypto
    • Altcoins
    • Bitcoin
    • Ethereum
  • Companies
    • Micro-Cap
    • Small-Cap
    • Mid-Cap
    • Large-Cap
    • Mega-Cap
  • Q&A’s
  • Contributions
No Result
View All Result
  • Latest News
  • Technology
    • Software
    • Semiconductors
  • Healthcare
    • Biotechnology
    • Pharmaceuticals
  • Crypto
    • Altcoins
    • Bitcoin
    • Ethereum
  • Companies
    • Micro-Cap
    • Small-Cap
    • Mid-Cap
    • Large-Cap
    • Mega-Cap
  • Q&A’s
  • Contributions
No Result
View All Result
STOXPO
No Result
View All Result
Home Consumer Defensive Discount Stores
investing

Costco’s Strong June 2024 Performance and Upcoming Membership Fee Increase

byLiliana Vida
July 11, 2024
in Discount Stores, Foods, Large-Cap, Retail
Reading Time: 3 mins read
Share on TwitterShare on LinkedIn

Exceptional Sales Growth and Strategic Membership Adjustments Position Costco for Continued Success

Costco has demonstrated robust performance in June 2024, marking another milestone in its journey of consistent growth and market leadership. The retail giant reported a commendable 5.3% increase in comparable sales (comp) for June, aligning closely with projections. Excluding the combined headwind of 160 basis points (bps) from gas prices (-50 bps) and foreign exchange (FX) rates (-110 bps), the core merchandise comp exceeded expectations, hitting 6.9% compared to the anticipated 6.5%.

This solid performance is reflected across different regions. In the U.S., the core comp excluding gas stood at 6.3%, while Canada reported an 8.4% increase excluding gas and FX. The international segment also performed admirably, with a core comp of 8.7% excluding FX. These figures underscore Costco’s adept execution and its ability to gain market share even amid challenging conditions.

Traffic Trends and E-commerce Surge

June saw a notable 6.6% rise in total traffic, with U.S. traffic specifically increasing by 5.9%. However, the average ticket size decreased by 1.2%, attributed to lower inflation and sharper pricing strategies designed to highlight value for customers.

Costco’s e-commerce segment was particularly impressive, boasting an 18.4% increase in sales, a significant rebound from the previous year’s 0.7% decline. On a constant currency basis, e-commerce sales surged by 19.1%. This growth can be attributed to several factors, including the recovery of non-food items, expansion of product offerings through the Costco Next program, effective marketing strategies, and favorable year-over-year comparisons.

Category Performance Insights

In terms of category performance, fresh foods and food & sundries reported mid-single-digit to high-single-digit (MSD-HSD) and mid-single-digit (MSD) comp growth, respectively, driven by healthy at-home consumption trends. Non-foods, or general merchandise, continued its strong performance with a low double-digit (LDD) increase, marking the eighth consecutive positive month following a period of declines. Key outperformance areas included jewelry, gift cards, toys, and seasonal items. Ancillary businesses, including pharmacy, food court, and optical, also reported a low single-digit (LSD) comp increase.

Upcoming Membership Fee Increase

In a strategic move to bolster its revenue, Costco announced an increase in its membership fees effective September 1. Regular membership fees in the U.S. and Canada will rise by $5 to $65, while executive membership fees will increase by $10 to $130. Additionally, the maximum 2% reward for executive members will go up from $1,000 to $1,250. These changes will impact approximately 52 million paid members, with over half being executive members.

The fee hike is projected to generate an additional $196 million in membership fee income (MFI) and contribute approximately $0.32 to earnings per share (EPS) in FY25. This strategic adjustment reflects Costco’s commitment to enhancing member value while driving financial growth.

Future Outlook and Investment Thesis

Costco’s exceptional execution in a challenging operating environment reinforces its position as a market leader. With strong sales and high membership renewal rates, currently at around 134 million members, the company is well-positioned for continued success. In FY25, Costco is expected to maintain solid EPS growth, driven by mid-single-digit (MSD) comp growth, high single-digit to low double-digit (HSD-LDD) membership fee income growth, effective merchandising and cost management, and leveraging customer data.

Given Costco’s strong performance and strategic initiatives, analysts have maintained an Outperform rating and increased the 12-month price target by $25 to $900. This valuation is based on a price-to-earnings (P/E) multiple of approximately 51 times the FY25 EPS estimate of $17.75.

In conclusion, Costco’s robust June 2024 performance and strategic membership fee increase underscore its resilience and adaptability in an uncertain market. As the company continues to execute its growth strategies effectively, it remains a compelling investment opportunity for shareholders.

You might like this article:Samsung Unveils Galaxy Z Fold 6 and Z Flip 6: Foldables with Generative AI Power

Tags: analystsGrowthMoversNewsStock Market
Previous Post

Samsung Unveils Galaxy Z Fold 6 and Z Flip 6: Foldables with Generative AI Power

Next Post

CAVA Poised for Long-Term Growth with Conservative Estimates: A Bright Future Ahead

Related Posts

chemistry-2

Nektar Therapeutics Surges After Positive Eczema Drug Trial Results

byLuca Blaumann
June 24, 2025
0

Shares double as midstage study shows promising efficacy and safety for autoimmune treatment Nektar Therapeutics (NKTR) saw its shares double...

investing

Wall Street’s Top Research Upgrades: Lyft, EA, Exelixis, Broadcom, MakeMyTrip

byLuca Blaumann
June 24, 2025
0

Analysts highlight best ideas for 2025 with bullish calls on growth, innovation, and market resilience Wall Street analysts are rolling...

investing

Carnival Cruises Past Expectations with Strong Q2 Results and Upbeat Forecast

byLuca Blaumann
June 24, 2025
0

Robust travel demand and onboard spending push Carnival Corp to raise full-year profit outlook Carnival Corp (CCL) raised its annual...

Next Post

CAVA Poised for Long-Term Growth with Conservative Estimates: A Bright Future Ahead

Latest News

Nektar Therapeutics Surges After Positive Eczema Drug Trial Results

Wall Street’s Top Research Upgrades: Lyft, EA, Exelixis, Broadcom, MakeMyTrip

Carnival Cruises Past Expectations with Strong Q2 Results and Upbeat Forecast

Tesla Keeps Robotaxi Safety Details Confidential Amid Federal Review

Kroger Shares Surge 9% After Sales Forecast Hike Despite Mixed Quarter

Based on Your Interest

Large-Cap

Intel Hires Top Industry Talent to Bolster Engineering and AI Teams

June 18, 2025
Pharmaceuticals

MIRA Pharmaceuticals Secures Key Publication for Ketamir-2, a Next-Gen Ketamine Analog

June 18, 2025
investing
Large-Cap

AMD’s Growth Engine Accelerates as Piper Sandler Raises Price Target to $140

June 16, 2025

Recommended

Mega-Cap

Strategy Doubles Down on Bitcoin with $1.05B Buy Despite Market Jitters

June 16, 2025
Asset Management

Lloyd Financial CEO & CIO Sees Golden Opportunity in Treasuries and Utilities Amid AI-Driven Deflation

June 13, 2025
Aerospace & Defense

Defense Stocks Rally as Middle East Tensions Escalate Following Israeli Airstrikes

June 13, 2025
Semiconductors

Oracle Soars on Cloud Optimism and AI Momentum

June 12, 2025
Large-Cap

Micron to Invest $30 Billion More in U.S. Semiconductor Expansion

June 12, 2025
Stoxpo

Follow us on social media:

Highlights

  • Nektar Therapeutics Surges After Positive Eczema Drug Trial Results
  • Wall Street’s Top Research Upgrades: Lyft, EA, Exelixis, Broadcom, MakeMyTrip
  • Carnival Cruises Past Expectations with Strong Q2 Results and Upbeat Forecast
  • Tesla Keeps Robotaxi Safety Details Confidential Amid Federal Review
  • Kroger Shares Surge 9% After Sales Forecast Hike Despite Mixed Quarter

Category

  • Blog
  • Communication Services
    • Entertainment
    • Internet
    • Telecommunications
  • Companies
    • Large-Cap
    • Mega-Cap
    • Micro-Cap
    • Mid-Cap
    • Small-Cap
  • Consumer Cyclical
    • Auto Manufacturers
    • Casinos & Gambling
    • Ground Transportation
    • Hospitality
      • Casinp
      • Resorts & Lodging
      • Restaurants
      • Travel
        • Airlines
    • Retail
    • Textiles, Apparel & Luxury Goods
  • Consumer Defensive
    • Beverages
    • Discount Stores
    • Distributor
    • Ecommerece
    • Electrical Equipment
    • Foods
    • Household & Personal Products
    • Leisure Products
    • Tobacco
  • Contributions
  • Crypto
    • Altcoins
    • Bitcoin
    • Ethereum
  • Economy
  • Energy
    • Electric
    • Oil & Gas
    • Renewables
  • Financial Services
    • Asset Management
    • Banks
    • Brokerages
    • Credit Services
    • Insurance
  • Healthcare
    • Biotechnology
    • Medical Devices
    • Pharmaceuticals
  • Industrials
    • Aerospace & Defense
    • Construction
    • Industrial Machinery
  • Materials
    • Building Materials
    • Chemicals
    • Gold
    • Mining
    • Silver
    • Steel
  • Q&A's
  • Real Estate
  • Technology
    • Artificial Intelligence
    • Computer Hardware
    • Consumer Electronics
    • Cybersecurity
    • IT Services
    • Semiconductors
    • Software
  • Utilities

Latest News

chemistry-2

Nektar Therapeutics Surges After Positive Eczema Drug Trial Results

June 24, 2025
investing

Wall Street’s Top Research Upgrades: Lyft, EA, Exelixis, Broadcom, MakeMyTrip

June 24, 2025
investing

Carnival Cruises Past Expectations with Strong Q2 Results and Upbeat Forecast

June 24, 2025
  • About
  • Privacy Policy
  • Contact

© 2024 All Rights Reserved: STOXPO.

No Result
View All Result
  • Latest News
  • Healthcare
    • Biotechnology
    • Pharmaceuticals
  • Technology
    • Software
    • Semiconductors
  • Crypto
    • Bitcoin
    • Ethereum
    • Altcoins
  • Companies
    • Micro-Cap
    • Small-Cap
    • Mid-Cap
    • Large-Cap
    • Mega-Cap
  • Q&A’s
  • Contributions

© 2024 All Rights Reserved: STOXPO.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More

In case of sale of your personal information, you may opt out by using the link Do Not Sell My Personal Information

Accept Cookie Settings
Cookies are small text files that can be used by websites to make a user's experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies we need your permission. This site uses different types of cookies. Some cookies are placed by third party services that appear on our pages.
  • Always Active
    Necessary
    Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
  • Marketing
    Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
  • Analytics
    Analytics cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously.
  • Preferences
    Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.
  • Unclassified
    Unclassified cookies are cookies that we are in the process of classifying, together with the providers of individual cookies.
Cookie Settings

Do you really wish to opt-out?