Costco Boosts Membership Fees

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A Costco store is seen in Arvada, Colorado March 4, 2009. Costco Wholesale Corp posted lower profit on Wednesday as it aggressively cut prices to win market share. Costco, the No. 1 U.S. warehouse club, said its February sales at clubs open at least ... a year, or same-store sales, fell 3 percent, more than the 2.7 percent decline analysts had been expecting. REUTERS/Rick Wilking (UNITED STATES) - RTXCCWI (Reuters)

After posting disappointing earnings results on Thursday, discount retailer Costco announced it is raising annual membership fees by $5 in the U.S. and Canada.

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Goldstar and Business memberships will rise to $60, up from $55. Additionally, annual fees for Executive memberships will increase to $120 from $110, while the maximum 2% reward will increase to $1,000.

Costco said the changes will take effect June 1, and will impact 35 million members, about half of them Executive Members.

The discount retailer reported a total revenue of $29.8 billion in the fiscal second-quarter, up slightly from the same quarter of the prior year. Analysts’ revenue expectations were $29.9 billion.

Comparable store sales also missed the mark, growing 3% versus a 3.2% estimate.

The company has 728 warehouses across nine countries, with 508 in the U.S.