Key Takeaways
- Costco Wholesale employees represented by the International Brotherhood of Teamsters union voted overwhelmingly to authorize a nationwide strike should they not reach a new labor agreement by the end of the month.
- The Teamsters represent more than 18,000 Costco employees nationwide.
- Costco reported profit for its 2024 fiscal year ended Sept. 1 of $7.4 billion, up 17% year-over-year, on revenue of more than $254 billion.
The more than 18,000 Costco Wholesale (COST) employees represented by the International Brotherhood of Teamsters union voted to authorize a nationwide strike should they not reach a new labor agreement by the end of the month.
“Costco Teamsters nationwide have voted by an overwhelming 85 percent margin to authorize a strike,” the union said Sunday. “The vote is a direct result of the company’s continued failure to bargain constructively and refusal to present a fair contract offer that reflects the company’s record-breaking profits.”Â
Costco reported profit for its 2024 fiscal year ended Sept. 1 of $7.4 billion, up 17% year-over-year, on revenue of more than $254 billion. Since then, it reported better-than-expected fiscal 2025 first-quarter results—its first since higher membership fees went into effect—and posted strong December sales numbers.
“Costco’s greedy executives have less than two weeks to do the right thing,” Teamsters General President Sean M. O’Brien said. “If they refuse, they’ll have no one to blame but themselves when our members go on strike.”
Costco did not immediately respond to an Investopedia request for comment.
Costco Shares Have Surged 35% Over Past Year
Costco shares have risen more than 35% over the last 12 months, closing Friday trading at $943.19. The U.S. stock market is closed on Monday for Martin Luther King Jr. Day.
After Costco reported its holiday sales figures, Oppenheimer analysts noted that catalysts for its shares “include a potential stock split.”