Get ready to pay more for your Costco membership.
The club retailer said Thursday that effective June 1, the price of entry into its U.S. and Canada stores will be $60 for individual and business cardholders, an increase of $5. Executive members will see their fees go up by $10, to $120.
Costco last raised its membership fee in 2011, and typically does so every five to six years. The changes will impact some 35 million members, roughly half of whom belong to its executive program. Costco generates three-fourths of its operating income from membership fees, according to UBS.
The retailer notified Wall Street of the planned increases while reporting its fiscal second-quarter results. The chain's earnings and revenue fell short of Wall Street's expectations, sending its shares nearly 5 percent lower after the market closed.
Despite coming in lower than expected, sales at Costco's established stores increased 4 percent in February.