Costco’s latest income report reflects the growth of double digits in its e-commerce division and membership income.
key takeaways
- According to its latest quarter income report on Thursday, CostCo crossed the analyst’s predictions for revenue.
- The wholesaler also saw an increase in his membership income, which increased by 14% before a year.
- A development factor is the presence of young shopkeepers in the isles of costco.
Costco is performing much better than ever postco, posting strong financial results for its latest quarter. The wholesale giant is more than an analyst expectations for revenue as it continues to attract members, especially young shopkeepers.
Costco reported that For the fourth quarter of its 2024 fiscal year on Thursday, which ended on 31 August. As CNBCRevenue for the quarter increased by 8% year-old year to $ 86.16 billion, exceeding the expectations of the analyst.
The net income for the quarter was $ 2.61 billion, which was more than $ 2.09 billion at the same time last year, and the same-store sales (one metric that removes factors such as the opening and bandh of the store) increased by 6.4% during the quarter.
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Remandable, sales of e-commerce for the year increased by 15% year-on-year, including 7% of the net sales of costco for the year. CostCo CEO Ron Vakris said Earning call On Thursday that the company is upgrading the search facilities on its website and app to make it easier for customers to shop online.
“We are convinced in our ability to increase the market share to continue exciting, high quality goods at the best value for our members,” Vacharis said on the call.
The membership fee also saw an increase of double points in income, which increased by about 14% year-on-year to $ 1.72 billion for the quarter. The jump represents an increase in paying to shopkeepers, upgrading more members to high -priced membership and high annual fees. Costco raised For the first time since 2017, its membership fee increased last year, its annual gold star membership increased from $ 5, $ 60 to $ 65, and its executive membership ranged from $ 10, $ 120 to $ 130.
Small shopkeepers also come to costco. The company’s chief financial officer, Gary Millerchip, told CNBC earlier this year that the average age of costco members has decreased, and about it Half of its new members Every year there are under 40 years of age. Last year close to 137 million people Payed for a costco membership globally, an option of 47% for an executive membership.
How to plan to improve customer experience
Costco is opening new places in response to demand. Vakrcris said on the earnings call that the costco has opened 27 new godowns in the last quarter and plans to open an additional 35 stores in the new financial year.
Millerchip mentioned on the same call that the foot for the store increased by 3.7% during the quarter to visit the traffic and costco website, while the average transaction size increased by 2.6% globally.
Costco is planning to improve shopping experience at shops by rolling a new checkout technology, which makes it easy for employees to scan the item while the member is still in line.
“When reaching the cashier, nothing has to be removed from the cart; only the payment is required,” Vacharis said on the call.
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In the Digital Storefront Side, CostCo has introduced a virtual waiting room on its website on its website during a high-traffic time, such as a Pokémon card, he said. The company is also planning to introduce a password-free sign-in in its mobile app.
How expanded hours are affecting the sales of costco
Costco made a change at the beginning of this year, which announced that high -level executive members would have special access to shops in earlier times. Till September, wholesale merchant was extended All shops for executive members, its hours, 9 am to 10 am to 10 am and 9 am on Sunday from 9 am to 9 am on Saturday.
Extended hours have run a 1% weekly sales lift in the US, Vaature said on a call on Thursday.
“This is very well received by our members,” he said. “Since announcing these new executive benefits, we have seen a meaningful increase in upgradation from members of Gold Star to Executive Membership.”
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Costco operates 914 warehouses worldwide, including 629 and Puerto Rico in the US, the company said in the Thursday’s earnings report.
key takeaways
- According to its latest quarter income report on Thursday, CostCo crossed the analyst’s predictions for revenue.
- The wholesaler also saw an increase in his membership income, which increased by 14% before a year.
- A development factor is the presence of young shopkeepers in the isles of costco.
Costco is performing much better than ever postco, posting strong financial results for its latest quarter. The wholesale giant is more than an analyst expectations for revenue as it continues to attract members, especially young shopkeepers.
Costco reported that For the fourth quarter of its 2024 fiscal year on Thursday, which ended on 31 August. As CNBCRevenue for the quarter increased by 8% year-old year to $ 86.16 billion, exceeding the expectations of the analyst.
The net income for the quarter was $ 2.61 billion, which was more than $ 2.09 billion at the same time last year, and the same-store sales (one metric that removes factors such as the opening and bandh of the store) increased by 6.4% during the quarter.
