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Costco is off to a strong start this holiday shopping season as the retailer saw a surge in sales ahead of Black Friday and the official start of consumers’ seasonal shopping.

The members-only warehouse company also saw revenue increase thanks to higher membership dues, which it began charging in September – its first dues increase in seven years.

Costco reported net revenue of $61 billion, up 7.5% for the company’s first quarter of fiscal 2025, from $56.7 billion a year ago, a the company announced Thursday. The three-month period ended on November 24, a week before Black Friday.

“Seasonal sales appear to be very strong,” Gary Millerchip, Costco’s chief financial officer and executive vice president, said on a call with investment analysts Thursday. “This year, people are buying very simply, but the trends are good.”

Revenue from member dues increased 7.6%, accounting for $1.17 billion, compared to $1.08 billion a year ago, the company said.

The price of an annual Costco membership increased from $60 to $65 for Gold Star memberships in the United States and Canada, and Executive memberships increased from $120 to $130, the maximum annual reward of 2%. associated with executive membership increasing from $1,000 to $1,250.

Costco reported revenue of $62.15 billion, up 7.5% from last year. That’s more than the $61.9 billion estimated by Wall Street analysts surveyed by S&P Global Market Intelligence.

Membership dues brought in $4.8 billion in the previous fiscal year, which ended Sept. 1, 2024, and $1.5 billion for the previous three months, the company reported in September.

The company said it now has 77.4 million paid subscriptions, an increase of 7.6%. Nearly half (47%) were executive members.

More shoppers came to Costco

Costco, which sells products in bulk and offers discounts on foods, including eggs, for as little as $3, has continued to see sales grow as consumers remain concerned about prices.

With a shortened holiday shopping season, Costco joined other retailers in holding pre-Black Friday sales in early November. In-store traffic increased 5.1% during the period, while comparable tickets (total sales per individual customer) increased 0.1%, the company said.

“As consumers of all income levels continue to prioritize value, Costco is enjoying strong membership growth and generating additional revenue from the recent membership fee increase,” Sky Canaves said , senior analyst for retail and e-commerce at eMarketer, to USA TODAY.

“Among the major U.S. retailers we track, Costco is one of the few that can boast significant above-average e-commerce growth in 2024,” Canaves said. “The company is starting from a small base and still has a long way to go to grow its online business with additional revenue opportunities from the market and retail media network.”

Costco exec: sale of gold bars and precious metals boosts traffic

Costco reported a 13% increase in e-commerce sales during the quarter, with top e-commerce sales categories including gift cards, hardware, home furnishings, health and beauty products, sports, as well as gold and jewelry. The company has had success selling gold bars, silver coins and, more recently, platinum bars.

Costco members can access the website to purchase gold bars (currently priced at $2,749.99), platinum bars ($1,049.99), and silver coins ($649.99 ).

Owning precious metals has driven “significant traffic” to the company’s website, and “this is driving our ability to grow our digital business overall,” Millerchip said.

In the previous quarter, Costco saw sales increase, but not as much as Wall Street had expected, suggesting consumers were spending with apprehension.

The company’s shares, up 51% year to date, were up nearly 1% in extended trading.

Contributor: Reuters

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This article originally appeared on USA TODAY: Costco earnings report: Revenue, membership rise amid fee hike