Costco's Big Day Has Arrived! Expect Management to Address a Controversial New Perk That Has Some of Its 79.6 Million Paying Members in an Uproar.

Core Insights - Management commentary will be crucial for Costco's success in the upcoming year, beyond just headline figures like revenue and earnings per share [1][3] - Costco is set to announce its fiscal fourth quarter results, which are highly anticipated due to the company's significant market presence [2] Financial Performance - For the fiscal fourth quarter ending August 31, 2025, same-store sales excluding foreign currency movements and gasoline price changes rose by 6.4% globally, with e-commerce sales increasing by 13.5% [6] - E-commerce has become a key growth driver for Costco, with rising app downloads and high-value items contributing to increased traffic [7] Strategic Initiatives - Costco's management is expected to discuss efforts to expand digital sales logistics to meet growing demand [8] - The company is actively addressing inflationary pressures, which may be driving foot traffic due to its value proposition of low prices on essential goods [9][10] Membership Changes - Recent changes include an increase in annual fees for Gold Star and Business members by $5 to $65, and for Executive cardholders by $10 to $130 [12] - The implementation of special shopping hours for Executive cardholders has caused some discontent among Gold Star and Business members, but is seen as essential for maintaining Executive member loyalty [14][15] Membership Dynamics - Of Costco's 79.6 million global paying members, 37.6 million are Executive cardholders, who account for 73.1% of net sales [16] - Membership fees are a significant source of profit for Costco, providing a buffer against thin margins on groceries and essential items [17] Future Outlook - Management is likely to defend the new shopping-hours policy for Executive members and may provide guidance on expected upgrades from Gold Star/Business to Executive status [18] - Membership renewal rates for Executive cardholders will be critical in the coming year amid inflation concerns and backlash over the new policy [19]