Costco won’t raise its membership fees when renewals spike

Costco Wholesale (COST), shares were lower on Friday as the bulk retailer reported better than expected fourth quarter earnings.

However they noted pressures in profit margins due a rising inflation cost and shifting consumer preferences.

Costco's diluted earnings for three months ended August 28th were $4.20 per share, an 11.7% increase over last year. This beat Street expectations by about 4 cents.

The total revenues grew 15% to $72.091billion, beating analysts' estimates of $72.07billion. Membership revenues climbed 7.5% to $1.327billion

Costco reported that same store sales increased by 13.7% worldwide and 15.8% in the United States. E-commerce sales rose 7.1%.

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Costco noted that gross margins were down by approximately 80 basis points at 10.18%. However, overall inventories were up 26% compared to last year and showed some improvement over 

Costco saw inflation at 8% for the fiscal fourth-quarter ended August 28, compared with the previous quarter's 7%+.