Costco Reports Strong Fourth Quarter Earnings
Published at | Updated at(NEW YORK) — With some of the most loyal customers in the country, Costco Wholesale Corp. reported on Wednesday higher revenue from membership fees, beating Wall Street’s expectations.
The warehouse’s strong fourth quarter earnings, from June through August, wasn’t much of a surprise to Ken Perkins, Morningstar equity analyst.
“Some of the things they have done well are customer loyalty and retention, membership renewal rates and growth of membership,” Perkins said. “People are excited to shop there and it doesn’t seem like it’s slowing down.”
While e-commerce competition and convenience shopping are challenges to big box retailers, Costco seems to be bucking that trend at least for now, Perkins said.
The thing people like most about Costco, Perkins believes, is they feel like they’re getting a good deal.
“People really feel confident even if they spend quite a lot of money on bulk,” he said.
Follow @ABCNewsRadio
Copyright 2014 ABC News Radio