Costco Slashes Kirkland Prices by $1-$10, Membership Revenue Jumps 10.7%
COST•Costco lowered prices on four Kirkland Signature items by $1 to $10, cutting king size sheets to $79.99, golf balls to $29.99, wings to $14.99 and almonds to $18.99 during its fiscal third quarter. Membership fee revenue rose 10.7% to $1.37B as net sales climbed 11.6% to $69.15B.
1. Kirkland Signature Price Cuts
During fiscal Q3, Costco cut prices on four Kirkland private-label products, reducing king size sheets by $10 to $79.99, golf balls by $3 to $29.99, crispy wings to $14.99 and chocolate almonds to $18.99 without in-store advertising.
2. Q3 Financial Highlights
Membership fee revenue increased 10.7% to $1.37 billion, net sales rose 11.6% to $69.15 billion, net income grew to $2.19 billion ($4.93/share) from $1.90 billion ($4.28), while comparable-store sales gained 9.8% (6.6% ex-gas and FX) and digital sales climbed 21.5%.
3. Strategic Pricing Philosophy
CFO Gary Millerchip highlighted investment in lower prices for members and CEO Ron Vachris reaffirmed the goal to be first to cut and last to raise prices, leveraging membership fee flexibility. The scope and duration of these markdowns remain unspecified.
