Costco Hits the Ball Out of the Park Again With a 92.7% Renewal Rate. Time to Buy the Stock?
Costco (NASDAQ: COST) falls into the retail sector, but it isn't your normal retailer. That's because the company is a wholesale club. The operative word there being club, because it charges a membership fee.
In the fiscal fourth quarter of 2023, the company reported that 92.7% of its club members renewed their memberships. This is a vital stat to understand if you are thinking about buying the stock.
When you examine Costco's income statement, you'll see two items under revenue. The first is exactly what you would expect from a retailer: net sales. This figure basically includes the revenue from selling all of those giant packages of toilet paper, clothing, rotisserie chickens, and $1.50 hot dog/soda combos. The figure in fiscal 2023 totaled $237.7 billion.
Source Fool.com
