How did Costco's June 2024 sales perform compared with last year?

Net sales for the five-week June retail month were $24.48 billion, up 7.4% from $22.78 billion a year earlier. Excluding gasoline price and foreign exchange effects, total company comparable sales rose 6.9%, which suggests the underlying growth was not driven solely by fuel prices or currency movements.

What is the dividend and when does it get paid?

The Board declared a quarterly cash dividend of $1.16 per share. It is payable August 9, 2024, to shareholders of record at the close of business on July 26, 2024. The filing does not indicate any change from the prior dividend cadence.

What are the membership fee changes and when do they take effect?

Effective September 1, 2024, U.S. and Canada Gold Star, Business, and Business add-on memberships rise by $5 to $65 annually. Executive Membership fees increase from $120 to $130, and the maximum annual Executive 2% reward increases from $1,000 to $1,250. About 52 million memberships are affected.

Why does the membership fee increase matter to investors?

Membership fees are a high-margin, recurring revenue stream that contributes meaningfully to operating income. Because the increase applies to a large base of memberships, it could support earnings growth, although the impact depends on renewal rates and member retention after the change. The filing does not quantify the expected financial effect.

Which regions and channels drove comparable sales growth?

E-commerce was the strongest channel, with comparable sales up 18.4% for the five weeks. Among geographies, Other International (8.7%) and Canada (8.4%) led on comparable sales excluding gasoline and FX, while the U.S. grew 6.3% on the same basis. Growth was broad-based across Costco's major markets.

COST 8-K SEC Disclosure

01—Abstract

Summary

Summary of the 8-K filed July 10, 2024. Cited figures are marked; the original filing is the authoritative source.

Costco Wholesale (COST) filed an 8-K on July 10, 2024, reporting June 2024 retail-month results (the five weeks ended July 7, 2024), declaring a quarterly cash dividend of $1.16^a per share, and announcing a membership fee increase effective September 1, 2024.

Net sales for the five-week period were $24.48 billion^b, up 7.4% from $22.78 billion a year earlier. Net sales for the first 44 weeks of fiscal 2024 reached $210.55 billion, up 6.9%. Total company comparable sales rose 5.3% for the period and 5.4% year-to-date, and comparable sales excluding gasoline price and foreign exchange effects rose 6.9% for the five weeks and 5.6% year-to-date, indicating underlying demand strength.

E-commerce comparable sales grew 18.4% for the five weeks, a notable acceleration in digital engagement. The dividend of $1.16^c per share is payable August 9, 2024, to holders of record on July 26, 2024. The filing offers no multi-year dividend or capital-return commentary beyond this quarterly declaration, so investors should treat it as a routine continuation of the existing payout.

The most consequential item for long-term investors is the membership fee increase. Effective September 1, 2024, Gold Star, Business, and Business add-on fees rise $5 to $65,^d and Executive Membership fees rise from $120 to $130, with the maximum annual 2% reward increasing from $1,000 to $1,250. The change affects roughly 52 million memberships, and because membership fees are a high-margin revenue stream tied to renewal rates, the increase is a meaningful lever for future operating income.

02—Key points

Key Highlights

June retail-month net sales of $24.48 billion, up 7.4% year over year; first 44 weeks net sales of $210.55 billion, up 6.9%.
Total company comparable sales of 5.3% for the five weeks and 5.4% year to date; excluding gasoline and FX, comparable sales rose 6.9% and 5.6% respectively.
U.S. comparable sales excluding gasoline and FX rose 6.3% for the five weeks, while Canada (8.4%) and Other International (8.7%) showed stronger underlying growth.
E-commerce comparable sales grew 18.4% for the five weeks and 15.2% year to date, signaling sustained digital momentum.
Quarterly cash dividend declared at $1.16 per share, payable August 9, 2024, to shareholders of record on July 26, 2024.
Membership fee increase effective September 1, 2024: Gold Star, Business, and Business add-on fees rise $5 to $65; Executive Membership rises from $120 to $130, and the maximum Executive 2% reward rises from $1,000 to $1,250.
Fee increases affect about 52 million memberships, a little over half of which are Executive, making this a significant potential contributor to future membership fee income.

03—Questions

Frequently Asked Questions

How did Costco's June 2024 sales perform compared with last year?
Net sales for the five-week June retail month were $24.48 billion, up 7.4% from $22.78 billion a year earlier. Excluding gasoline price and foreign exchange effects, total company comparable sales rose 6.9%, which suggests the underlying growth was not driven solely by fuel prices or currency movements.
What is the dividend and when does it get paid?
The Board declared a quarterly cash dividend of $1.16 per share. It is payable August 9, 2024, to shareholders of record at the close of business on July 26, 2024. The filing does not indicate any change from the prior dividend cadence.
What are the membership fee changes and when do they take effect?
Effective September 1, 2024, U.S. and Canada Gold Star, Business, and Business add-on memberships rise by $5 to $65 annually. Executive Membership fees increase from $120 to $130, and the maximum annual Executive 2% reward increases from $1,000 to $1,250. About 52 million memberships are affected.
Why does the membership fee increase matter to investors?
Membership fees are a high-margin, recurring revenue stream that contributes meaningfully to operating income. Because the increase applies to a large base of memberships, it could support earnings growth, although the impact depends on renewal rates and member retention after the change. The filing does not quantify the expected financial effect.
Which regions and channels drove comparable sales growth?
E-commerce was the strongest channel, with comparable sales up 18.4% for the five weeks. Among geographies, Other International (8.7%) and Canada (8.4%) led on comparable sales excluding gasoline and FX, while the U.S. grew 6.3% on the same basis. Growth was broad-based across Costco's major markets.

04—Continue

← View all 8-K filings