Costco’s Profit Pressure and Delivery Push | Durham News

Costco’s future looks promising despite a recent Bank of America downgrade, as the company continues to crush it on sales growth and its iconic membership model. But rising shipping and goods costs are squeezing profits — a big deal for a retailer that thrives on razor-thin margins. To keep members happy, Costco is rolling out delivery via DoorDash and Uber Eats in 47 states, making it easier to access deals without battling crowds or parking lots. Membership growth has slowed slightly, especially overseas and online, with analysts now expecting 4-5% annual growth — driven by perks and the beloved Kirkland brand. While earnings per share may dip slightly, sales remain strong, and any tariff refunds could help Costco absorb costs without raising prices. And with mountains of cash on hand, another special dividend is likely on the horizon — a shareholder-friendly move that’s become Costco’s signature play every few years.

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