Costco Q4 FY2025: How the Membership Fee Increase Reshapes the Margin Model

Costco reported Q4 FY2025 net sales of approximately $80 billion, with US comparable sales growing in the mid single digits and membership fee revenue accelerating into the new fee structure. This is the first full fiscal quarter with the increased membership fee in effect, and the early data on renewal rates and member behavior is the most important read in the quarter for any brand selling at Costco.

The membership fee read. Costco raised the Gold Star membership fee and the Executive membership fee in the prior fiscal year, with the change taking full effect in Q4 FY2025. The early data shows renewal rates holding in the high ninety percent range globally and in the low ninety percent range for paid Executive memberships, where the value math remains compelling because of the two percent rewards on annual spend. For brands, the read is clear: Costco's pricing power with members is intact, which means the retailer can continue to invest in member value, which means the vendor side will continue to be asked to deliver pack out and price that supports member value first.

The roadshow and demo program acceleration. Costco's roadshow program continued to expand in Q4 FY2025, with the number of in club roadshow events and the number of brands rotating through the program both growing year over year. For brands considering Costco, the roadshow is now the dominant entry path: a successful roadshow can become a permanent SKU, but the bar for graduation is high and getting higher as more brands compete for the same physical space. Velocity benchmarks for Q4 FY2025 roadshows tracked materially above the FY2024 averages, in part because the program has become better targeted to seasonal categories and in part because brand participation has become more sophisticated.

The Kirkland Signature signal. Kirkland Signature continued to take a slightly larger share of category revenue in the quarter, particularly in beverages, household paper, and basic apparel. For national brands selling at Costco, the implication is the familiar Costco dynamic: the buyer expects you to clearly out perform Kirkland on either quality, brand recognition, or specific functional benefit, and the moment those margins compress, the buyer has a credible alternative ready.

Ecommerce growth and the implications for digital first brands. Costco's ecommerce business grew approximately fifteen percent in the quarter, well ahead of the in club comp, and the average order value continues to skew toward larger ticket items that ship economically. For brands with digital first DNA, Costco.com is increasingly a viable entry path for items that do not fit the club pack out model, particularly in categories like appliances, furniture, and seasonal larger ticket goods.

What this means for brands entering Costco in FY2026. Three takeaways. First, the membership fee held the renewal rate, which validates the assumption that Costco's pricing power supports continued investment in member value, which means vendor price pressure is the default not the exception. Second, the roadshow program is the dominant entry path and the bar for graduation continues to rise. Third, Costco.com is a real opportunity for brands and items that do not fit the in club pack model, but the operational requirements for the dot com channel differ meaningfully from the in club channel.

MOART perspective. Costco Q4 FY2025 is the cleanest quarterly read in the warehouse channel in five years. The fee increase did not damage the member base. The growth is high quality. For brands evaluating Costco as a North American retail entry point, the channel is healthier than it has been in years, and the discipline required to win is also higher than it has been in years.