By Katherine Hamilton

Costco Wholesale posted higher sales in its latest quarter, with its revenue boosted by its first increase in membership fees in seven years and a double-digit jump in online sales.

The warehouse-club chain on Thursday reported a 7.5% increase in sales for its fiscal first-quarter ended Nov. 24. Revenue from membership fees rose nearly 8% while e-commerce sales rose 13%, the retailer said.

Those top-line results helped the retailer post earnings that beat Wall Street's expectations.

For the quarter, Costco reported a profit of $1.8 billion, or $4.04 a share, compared with $1.6 billion, or $3.58 a share, a year earlier. Excluding a tax benefit related to stock-based compensation, Costco's earnings came in at $3.82 a share.

Analysts polled by FactSet expected earnings of $3.79 a share.

Revenue came in at $62.2 billion, ahead of the $62.05 billion expected by analysts. Same store sales rose 5.2%.

Costco's earnings come as other retailers have posted mixed results heading into the critical holiday shopping season.

Walmart last month said it was entering the season with momentum after strong back-to-school and Halloween sales, while Target cut its financial forecasts as its consumers exhibit more caution due to multiple years of price inflation.

This quarter marked the first that fully reflected Costco's higher fees, which went into effect on Sept. 1. Costco last raised the fee in 2017.

The wholesaler logged $1.17 billion membership fees in the fourth quarter, up from $1.08 billion it made during the same period last year.

Shares of Costco rose less than 1% ticked in late trading Thursday, after closing the market session down less than 1% at $988.39. That brought year-to-date gains on the shares to 50%.

Write to Katherine Hamilton at katherine.hamilton@wsj.com


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12-12-24 1710ET