Shares of Costco Wholesale are reaching new all-time highs, with the stock up 4.4% to $658.46 during midday trading. This marks the fifth record close for the company in just over a week. In fact, the stock has been performing exceptionally well this year, with a 44% increase.
In the first quarter, Costco reported a higher profit, with sales rising in line with analysts’ expectations. Same-store sales, which exclude store openings and closures, rose by 3.8%, maintaining consistency with the previous quarter. Furthermore, the company saw a significant improvement in its e-commerce sales, bucking the trend of sliding sales. In particular, bigger-ticket non-food items performed well, indicating a reversal from previous results where Costco experienced weakness in discretionary sales.
Despite widespread anticipation from analysts, Costco decided not to increase its membership fee. Chief Financial Officer Richard Galanti stated that the company is currently performing well in terms of renewal rates, sign-ups, and customer loyalty, making a fee increase unnecessary.
In addition to these positive results, Costco also announced a $15 special dividend.
Overall, Costco Wholesale is thriving due to its solid financial performance and strategic decision-making.