Costco’s CFO Addresses Speculation Surrounding $1.50 Hotdog-Soda Combo Amid Soaring Earnings
In a recent earnings report for fiscal Q3 2024, Costco revealed impressive numbers, with revenue hitting $57.39 billion, marking a 9.1% year-over-year increase. The retailer’s success has been attributed to a combination of unique offerings, including Wagyu beef, $1,200 swing sets, and even 24-karat gold bars.
Costco’s CEO, Ron Vachris, highlighted the positive response from members to these new products, noting that they have been driving sales and engagement. The introduction of innovative merchandise has proven to be a hit among customers, with items like gold bars quickly selling out upon restocking.
Membership fee income also saw a significant increase, reaching $1.123 billion in Q3. Despite the growth, CFO Gary Millerchip assured investors that Costco has no immediate plans to raise membership fees, citing strong renewal rates and a cautious approach to market conditions.
Addressing concerns about inflation impacting the iconic $1.50 hotdog-soda combo, Millerchip reassured consumers that the price would remain unchanged. Costco’s stock was up 58% year over year, reflecting the company’s strong performance in the current economic landscape.