Costco Isn't Ready to Hike Subscription Fees. Should Investors Be Worried?
Costco Wholesale (NASDAQ: COST) members are used to scoring deals at the warehouse, but right now they're also getting a break on their subscription fees. The retailer typically raises its annual charges about every five years; yet, more than six years have passed since the last boost in 2017.
Wall Street is getting a little nervous.
Most of Costco's annual earnings come from fees, after all. And without those regular increases, it becomes much harder to keep profits rising. With that key risk in mind, let's look at why Costco's management might be reluctant to announce an increase today and what that could mean for the business.
Source Fool.com
