Costco delivers huge value. Moreover, it mixes low prices with strong customer loyalty. Furthermore, its membership fees create steady cash. As a result, this model drives lasting success for members and investors alike.
How Costco’s Fees Drive Growth
Costco’s annual fee income reached $3.6 billion in 2025. Also, renewals stayed above 92%. Thus, fee cash helps cover product costs. Meanwhile, it cushions margins when retail sales dip.
How Costco’s Sales Climb Year After Year
Total revenue grew from $166.8 billion in 2020 to $268.8 billion in 2025. Meanwhile, net profit rose every year on that strength. Consequently, the company reinvests in lower prices. Hence, it keeps customers happy and loyal.
How Costco’s Stock Tracks Performance
Costco’s share price climbed from $357 to $952 between 2020 and 2025. Consequently, investors saw solid gains over time. In turn, this trend reflects steady fee and sales growth.
How Costco’s Membership Numbers Soar
The number of paid members rose from 71 million in 2021 to 81 million in 2025. As a result, the membership base proves this model works globally.
How Costco’s Model Manages Risk
Economic dips can hurt retail sales. Yet high renewal rates guard membership cash. Therefore, Costco weathers slowdowns better than many peers.
How Costco’s Expansion Fuels Value
Costco added new warehouses and grew online sales by 14.8%. Moreover, it now runs 905 locations in 13 countries. Thus, broader reach brings new members and deeper loyalty.
Why Investors Love This Model
Costco’s high renewal rate creates a clear moat. Consequently, earnings stay reliable. As a result, investors prize the stock for consistent cash flow.
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Disclaimer: This analysis is for educational purposes only. It is not investment advice. Markets can change. Do your own due diligence.
Sources:
- https://investor.costco.com/news/news-details/2025/Costco-Wholesale-Corporation-Reports-Third-Quarter-and-Year-To-Date-Operating-Results-for-Fiscal-2025/default.aspx
- https://visiblealpha.com/data-snapshot/costcos-membership-fee-income-set-to-jump-10-in-2025/
- https://www.macrotrends.net/stocks/charts/COST/costco/revenue
- https://www.macrotrends.net/stocks/charts/COST/costco/stock-price-history
