Wholesaler Costco reported its fiscal fourth-quarter earnings that missed the mark on revenue, causing the company’s stock to dip by close to 2% on Friday.
Costco’s earnings per share (EPS) came at $5.29, eclipsing the analysts’ estimates of $5.08 in EPS and marking a 7% increase compared to the same period in 2023. However, it came short in a number of other fields.
The company’s revenue of $79.7 billion, a 1% year-over-year increase, came below the expected $79.9 billion, while a 5.4% year-over-year increase in same-store sales failed to meet the 5.7% growth estimated by analysts.
Additionally, its e-commerce division saw an 18.6% year-over-year increase in sales but below 20% growth seen in Q3. Meanwhile, Costco raked in $1.51 billion in membership fees, below the expected mark of $1.55 billion.
Costco’s membership fees increased in September, marking the first price hike in almost seven years. Still, the company doesn’t expect increased membership costs to deter customers.
“We haven’t seen a significant member reaction. Membership renewal rates remain stable. Our efforts to stave off inflation and deliver value to members have been recognized, and we continue to invest in member experience,” CFO Gary Millerchip said during the earnings call.
Costco’s stock dipped by 1.75% in the aftermath of the earnings report to close at $885.62 per share on Friday. The company’s shares are currently 36.11% up year-to-date.