ASSETCASTING

Costco: Does All Its Profit Come from Membership Fees?

Analysis and discussion based on real cases and sources

Event period: 2024.09.01 — 2025.08.31

Using Costco's actual filings and membership fee increase, we consider the differences between membership revenue, operating income, inventory turnover and members' choices.

In four frames, a curly-haired questioner in a mint jacket and a middle-aged female explainer in a burgundy vest read public filings. They distinguish membership fee revenue from operating income and explore warehouse pricing, inventory turnover and distribution. The characters and store scenes are explanatory illustrations, not actual employee statements or accounts of a real visit.
Dialogue

A fiscal 2025 disclosure case · A conversation between editorial guide characters Questioner: I heard it sells cheaply and makes its profit only from membership fees? Explainer: Shall we check that claim against the disclosed figures? Data: Fiscal 2025 · Membership fee revenue 5,323 · Operating income 10,383 · Unit: Millions of U.S. dollars. Explainer: Membership fee revenue and the company's total operating income are not the same. Questioner: We can't conclude that membership fees account for all profit. Questioner: Then does dividing them tell us how much membership contributes to profit? Explainer: Membership fees are a revenue item; operating income is what remains after expenses. A simple division doesn't establish that. Membership fee revenue ≠ membership segment net income. Explainer: The company connects low prices, rapid inventory turnover and efficient distribution in its explanation. Questioner: So we should examine how it sells merchandise, not just membership fees. Company explanation: 2025 annual report · Next: Renewal rates and consumer choices

In four frames, the same editorial guides discuss disclosed renewal rates, the U.S. and Canadian fee increase, members' fees, time and purchase quantities, and conditions for evaluating the business. Historical fiscal periods and action dates are shown so they are not mistaken for current Korean-only statistics. Their discussion of consumer judgment and investment prices is editorial interpretation.
Dialogue

The Costco case · What to check beyond membership fees Disclosure: As of 2025-08-31 · Renewal rate: U.S. and Canada 92.3% · Worldwide 89.8%. Questioner: Members who keep paying must matter. Explainer: Right. This renewal rate uses the company's defined trailing calculation. Company-disclosed figures · Not today's probability of renewing or Korean-only figures. Fee increase effective: 2024-09-01. Explainer: Membership fees rose in the U.S. and Canada at that time. Questioner: If fee revenue rises, we should separate membership growth from price increases. Actual action: U.S. and Canadian fee increase · Do not interpret it as a Korean action. Editorial interpretation from here. Questioner: Is it always worthwhile for members too? Explainer: Compare money saved with the fee, travel time and buying more than needed. Questioner: An impression of low prices doesn't explain the whole business. Explainer: Examine renewal rates, merchandise margins and operating costs together. A good business and a good investment price are different questions too. Repeat visits · Merchandise margins · Operating costs Fiscal 2025 case analysis · Future performance is not guaranteed.

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