Costco Reports Price Cuts on Kirkland Signature Items in Earnings Release

Costco reported that it cut prices on some of its Kirkland-branded items during its fourth-quarter earnings call.

Costco CFO Gary Millerchip said in last Thursday's earnings call that the company's investment in sustainability has allowed the company to pass savings on to customers.

Millerchip said the company reduced prices on its Kirkland Signature Boneless Chicken Tenderloins by 13% and saw sales increase 21%.

Other Kirkland Signature discounts mentioned included:

• Standard film reduced from $31.99 to $29.99
• Macadamia nuts have been reduced from $18.99 to $13.99
• 3-quart Spanish Olive Oil reduced from $38.99 to $34.99
• 2-pack baguettes reduced from $5.99 to $4.99
• Linen packages reduced from $19.99 to $18.99

Millerchip reported that the price reduction was not limited to the United States and that by producing toilet paper for the Asian market in Japan, the company was able to reduce the price there by 30%.

Price reductions occur when membership costs increase

The price cuts were discussed nearly a month after the company implemented its first increase in membership costs since 2017.

Gold Star memberships in the U.S. and Canada rose from $60 to $65 in September, and executive memberships rose from $120 to $130.

When the increase was announced in July, the company said the price increase would impact approximately 52 million memberships.

Millerchip reported that the company generated $1.512 billion in revenue from membership fees, an increase of $3 million. The CFO said that about half of new sign-ups in fiscal 2024 were under 40 years old and that board membership increased 9.7% compared to the previous year.