Costco Wholesale Corporation reported solid fourth-quarter and fiscal 2024 financial results on Thursday, demonstrating the retail giant's continuing ability to attract value-conscious consumers despite persistent inflationary pressures. The warehouse club operator delivered steady top-line growth while maintaining industry-leading customer retention rates across its worldwide store network.

For the 16-week fourth quarter ending September 1, Costco posted net sales of $78.2 billion, compared with $77.4 billion during the 17-week fourth quarter of the prior fiscal year. When adjusting for the extra operating week in fiscal 2023, net sales grew approximately 5.3 percent, driven by sustained grocery demand, strong private-label Kirkland Signature purchases, and expanding pharmacy volume.

Resilient In-Store Foot Traffic and Booming E-Commerce

Quarterly net income rose to $2.35 billion, or $5.29 per diluted share, up from $2.16 billion, or $4.86 per share, in the year-ago period. A major bright spot was the company's digital channels, where e-commerce comparable sales surged 18.9 percent. Growth was accelerated by expanded mobile app capabilities, faster delivery partnerships, and strong consumer appetite for precious metals such as gold bars.

For the full fiscal year 2024, total net sales reached $249.6 billion, representing a 5.0 percent increase over the previous year. Membership fee revenue climbed to $1.51 billion in the fourth quarter, providing the high-margin foundation that enables Costco to price merchandise at minimal markups and pass significant savings directly to households.

“Our renewal rates remain at record highs above 93% in the U.S. and Canada, illustrating the unmatched value proposition our warehouses deliver to members in an inflationary climate.”

Membership Fee Increases and Unmatched Customer Loyalty

The earnings release coincided with the implementation of Costco's first membership fee hike in seven years, which officially took effect on September 1. Annual fees increased by $5 to $65 for standard Gold Star and Business members, while Executive memberships rose by $10 to $130, accompanied by an increased maximum annual 2 percent reward cap of $1,250.

Retail analysts observed that unlike traditional retailers struggling with discretionary consumer pullbacks, Costco continues to expand its physical footprint and customer base. The company ended the fiscal year with 890 warehouses worldwide and over 76 million paid member households, confirming that consumer loyalty remains rock solid despite modest fee increases.

Sources

Costco Wholesale Retail Earnings Ron Vachris Consumer Spending Membership Fees E-Commerce Gold Star