Costco 4Q Profit Rises 11% On Sales, Membership Fees Growth |
| Wall Street Journal - Oct 5, 2011 |
Costco Wholesale Corp.'s (COST) fiscal fourth-quarter earnings rose a better-than-expected 11% and the warehouse club unveiled plans to raise membership fees for a little over 22 million customers.
Costco and other retailers have been grappling with rising merchandise costs, although still cost-conscious consumers have made it more difficult to raise prices. But the membership fee increase, which begins rolling out next month and is the company's first in over five years, may help offset a disappointing operating margin the company turned in for the fourth quarter. The 10% fee increase affects club members in the U.S. and Canada.
"It's a relatively small increase," Chief Financial Officer Richard Galanti said during a conference call with analysts. "We recognize where the economy is."
Costco will increase annual membership fees by $5, to $55, for U.S. individual, business, business add-on and Canada business members. Also, annual fees for U.S. and Canadian executive memberships will increase to $110 from $100. The maximum rebate reward for executive members will increase to $750 from $500.
Read Full Article from Wall Street Journal
- Posted: 2011-10-05 11:04:45
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