On Thursday, Costco announced it would raise the hourly wage for 130,000 of its American employees. CEO Richard Galanti, while discussing the company’s fiscal third-quarter earnings, said that starting wages for employees would be raised $1 an hour to $14.50 an hour while other hourly wages would be hiked 25 to 50 cents an hour.
Galanti added that the new wage increases would be probably be added to the company’s regular wage hikes. He acknowledged that the tax cuts would garner Costco an added $300 million each year.
The impetus for the wage hike was the windfall Costco received from the GOP tax cut; the company made $32.36 billion in sales and membership revenue in the twelve weeks ending May 13. That represented a 12.1% increase over the same period last year. Costco has enjoyed four straight quarters of double-digit sales growth.