In Q1 FY26, Costco’s membership fee income rose 14% year-over-year, reaching approximately $4.5 billion, and now represents nearly 80% of the company’s operating profit. This surge was powered by a combination of strong renewals and a 9.3% increase in Executive memberships, which carry an annual fee of $120. With global paid members surpassing 126 million and average household spending per visit up 6%, Costco’s subscription model continues to generate highly predictable cash flow that underpins its low-margin, high-volume retail strategy.

Costco reported a 92.3% renewal rate in the US and Canada and an 89.8% rate worldwide, marking one of the highest retention levels in retail. Executive members now account for 47.7% of all paid memberships but drive 74.2% of membership income, reflecting the success of new benefits such as extended shopping hours and Instacart credits. CFO Gary Millerchip noted that the slight dip from historical 93% levels results from an influx of digitally acquired members—almost 50% of new sign-ups are under age 40—who initially renew at marginally lower rates but represent significant lifetime value.

Costco’s surprise release of the Nike SB Dunk Low x Kirkland Signature sneaker in select warehouses across New York, Oregon, California and Washington drew long lines and sparked a resale frenzy. Priced at $134.99 with in-store tag detail reading $135.00, the drop sold out in hours. Over the following weekend, resale prices soared as high as $600—up roughly 200%—with 660 pairs changing hands on StockX alone. The gray colorway, featuring sweatshirt-style material and an Executive Membership-style hang tag, underscores Costco’s ability to leverage its Kirkland Signature brand beyond groceries and household essentials.