Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq:
COST) today announced its operating results for the second quarter
(twelve weeks) and the first 24 weeks of fiscal 2024, ended
February 18, 2024.
Net sales for the quarter increased 5.7 percent,
to $57.33 billion, from $54.24 billion last year. Net sales for the
first 24 weeks increased 5.9 percent, to $114.05 billion, from
$107.68 billion last year.
Net sales for the Company were negatively
impacted by approximately one and one-half percent for the quarter
and by approximately one-half percent for the first 24 weeks of
fiscal 2024 from the shift of the fiscal calendar, as a result of
the fifty-third week last year.
The following comparable sales data reflect
comparable locations year-over-year and comparable retail
weeks.
Comparable sales for the second quarter and
first 24 weeks of fiscal 2024 were as follows:
|
12 Weeks |
|
12 Weeks |
|
24 Weeks |
|
24 Weeks |
|
|
|
Adjusted* |
|
|
|
Adjusted* |
U.S. |
4.3% |
|
4.8% |
|
3.1% |
|
3.7% |
Canada |
9.2% |
|
9.0% |
|
7.8% |
|
8.6% |
Other International |
8.6% |
|
8.2% |
|
9.8% |
|
7.7% |
|
|
|
|
|
|
|
|
Total Company |
5.6% |
|
5.8% |
|
4.7% |
|
4.8% |
|
|
|
|
|
|
|
|
E-commerce |
18.4% |
|
18.2% |
|
12.2% |
|
12.0% |
*Excluding the impacts from changes in gasoline
prices and foreign exchange.
Net income for the quarter was $1,743 million,
$3.92 per diluted share, compared to $1,466 million, $3.30 per
diluted share, last year. This year's second quarter net income was
positively impacted by a $94 million ($0.21 per diluted share) tax
benefit due to the deductibility of the $15 per share special
dividend to the extent received by 401(k) plan participants. Net
income for the first 24 weeks was $3.33 billion, $7.49 per diluted
share, compared to $2.83 billion, $6.37 per diluted share, last
year.
For the four-week reporting month of February,
ended March 3, 2024, the Company reported net sales of $18.21
billion, an increase of 6.9 percent from $17.04 billion last year.
Net sales for the first 26 weeks were $123.15 billion, an increase
of 6.1 percent from $116.06 billion last year.
Comparable sales for the periods ended March 3,
2024, were as follows:
|
4 Weeks |
|
4 Weeks |
|
26 Weeks |
|
26 Weeks |
|
|
|
Adjusted* |
|
|
|
Adjusted* |
U.S. |
3.4% |
|
4.1% |
|
3.2% |
|
3.8% |
Canada |
8.4% |
|
8.3% |
|
7.9% |
|
8.7% |
Other
International |
10.2% |
|
11.3% |
|
9.8% |
|
7.8% |
|
|
|
|
|
|
|
|
Total
Company |
5.0% |
|
5.6% |
|
4.7% |
|
4.9% |
|
|
|
|
|
|
|
|
E-commerce |
16.2% |
|
16.0% |
|
12.6% |
|
12.4% |
*Excluding the impacts from changes in gasoline
prices and foreign exchange.
Costco currently operates 875 warehouses,
including 603 in the United States and Puerto Rico, 108 in Canada,
40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea,
15 in Australia, 14 in Taiwan, six in China, four in Spain, two in
France, and one each in Iceland, New Zealand and Sweden. Costco
also operates e-commerce sites in the U.S., Canada, the United
Kingdom, Mexico, Korea, Taiwan, Japan and Australia.
A conference call to discuss these results is
scheduled for 2:00 p.m. (PT) today, March 7, 2024, and is available
via a webcast on investor.costco.com (click on “Events &
Presentations”).
Certain statements contained in this document
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. For these
purposes, forward-looking statements are statements that address
activities, events, conditions or developments that the Company
expects or anticipates may occur in the future. In some cases
forward-looking statements can be identified because they contain
words such as “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “seek,” “should,” “target,”
“will,” “would,” or similar expressions and the negatives of those
terms. Such forward-looking statements involve risks and
uncertainties that may cause actual events, results or performance
to differ materially from those indicated by such statements. These
risks and uncertainties include, but are not limited to, domestic
and international economic conditions, including exchange rates,
inflation or deflation, the effects of competition and regulation,
uncertainties in the financial markets, consumer and small business
spending patterns and debt levels, breaches of security or privacy
of member or business information, conditions affecting the
acquisition, development, ownership or use of real estate, capital
spending, actions of vendors, rising costs associated with
employees (generally including health-care costs), energy and
certain commodities, geopolitical conditions (including tariffs and
the Ukraine conflict), the ability to maintain effective internal
control over financial reporting, regulatory and other impacts
related to climate change, public-health related factors, and other
risks identified from time to time in the Company’s public
statements and reports filed with the Securities and Exchange
Commission. Forward-looking statements speak only as of the date
they are made, and the Company does not undertake to update these
statements, except as required by law. Comparable sales and
comparable sales excluding impacts from changes in gasoline prices
and foreign exchange are intended as supplemental information and
are not a substitute for net sales presented in accordance with
GAAP.
CONTACTS: |
|
Costco
Wholesale Corporation |
|
|
David Sherwood, 425/313-8239 |
|
|
Josh Dahmen, 425/313-8254 |
|
|
Andrew Yoon, 425/313-6305 |
COST-Earn COST-Sales
COSTCO
WHOLESALE CORPORATION |
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
(dollars in
millions, except per share data) |
(unaudited) |
|
|
|
|
|
12 Weeks
Ended |
|
24 Weeks
Ended |
|
February 18, 2024 |
|
February 12, 2023 |
|
February 18, 2024 |
|
February 12, 2023 |
REVENUE |
|
|
|
|
|
|
|
Net sales |
$ |
57,331 |
|
|
$ |
54,239 |
|
|
$ |
114,048 |
|
|
$ |
107,676 |
|
Membership fees |
|
1,111 |
|
|
|
1,027 |
|
|
|
2,193 |
|
|
|
2,027 |
|
Total revenue |
|
58,442 |
|
|
|
55,266 |
|
|
|
116,241 |
|
|
|
109,703 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
Merchandise costs |
|
51,140 |
|
|
|
48,423 |
|
|
|
101,597 |
|
|
|
96,192 |
|
Selling, general and administrative |
|
5,240 |
|
|
|
4,940 |
|
|
|
10,598 |
|
|
|
9,857 |
|
Operating income |
|
2,062 |
|
|
|
1,903 |
|
|
|
4,046 |
|
|
|
3,654 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
Interest expense |
|
(41 |
) |
|
|
(34 |
) |
|
|
(79 |
) |
|
|
(68 |
) |
Interest income and other, net |
|
216 |
|
|
|
114 |
|
|
|
376 |
|
|
|
167 |
|
INCOME BEFORE INCOME TAXES |
|
2,237 |
|
|
|
1,983 |
|
|
|
4,343 |
|
|
|
3,753 |
|
Provision for income taxes |
|
494 |
|
|
|
517 |
|
|
|
1,011 |
|
|
|
923 |
|
NET
INCOME |
$ |
1,743 |
|
|
$ |
1,466 |
|
|
$ |
3,332 |
|
|
$ |
2,830 |
|
|
|
|
|
|
|
|
|
NET
INCOME PER COMMON SHARE: |
|
|
|
|
|
|
|
Basic |
$ |
3.93 |
|
|
$ |
3.30 |
|
|
$ |
7.51 |
|
|
$ |
6.37 |
|
Diluted |
$ |
3.92 |
|
|
$ |
3.30 |
|
|
$ |
7.49 |
|
|
$ |
6.37 |
|
|
|
|
|
|
|
|
|
Shares used
in calculation (000s): |
|
|
|
|
|
|
|
Basic |
|
443,892 |
|
|
|
443,877 |
|
|
|
443,859 |
|
|
|
443,857 |
|
Diluted |
|
444,754 |
|
|
|
444,475 |
|
|
|
444,579 |
|
|
|
444,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTCO
WHOLESALE CORPORATION |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(amounts in
millions, except par value and share data) |
(unaudited) |
Subject to Reclassification |
|
|
February 18, 2024 |
|
September 3, 2023 |
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
9,095 |
|
|
$ |
13,700 |
|
Short-term investments |
|
1,226 |
|
|
|
1,534 |
|
Receivables, net |
|
2,779 |
|
|
|
2,285 |
|
Merchandise inventories |
|
17,075 |
|
|
|
16,651 |
|
Other current assets |
|
1,971 |
|
|
|
1,709 |
|
Total current assets |
|
32,146 |
|
|
|
35,879 |
|
OTHER ASSETS |
|
|
|
Property and equipment, net |
|
27,601 |
|
|
|
26,684 |
|
Operating lease right-of-use assets |
|
2,740 |
|
|
|
2,713 |
|
Other long-term assets |
|
3,836 |
|
|
|
3,718 |
|
TOTAL ASSETS |
$ |
66,323 |
|
|
$ |
68,994 |
|
LIABILITIES AND EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts payable |
$ |
17,494 |
|
|
$ |
17,483 |
|
Accrued salaries and benefits |
|
4,801 |
|
|
|
4,278 |
|
Accrued member rewards |
|
2,268 |
|
|
|
2,150 |
|
Deferred membership fees |
|
2,541 |
|
|
|
2,337 |
|
Current portion of long-term debt |
|
1,080 |
|
|
|
1,081 |
|
Other current liabilities |
|
6,504 |
|
|
|
6,254 |
|
Total current liabilities |
|
34,688 |
|
|
|
33,583 |
|
OTHER LIABILITIES |
|
|
|
Long-term debt, excluding current portion |
|
5,865 |
|
|
|
5,377 |
|
Long-term operating lease liabilities |
|
2,488 |
|
|
|
2,426 |
|
Other long-term liabilities |
|
2,522 |
|
|
|
2,550 |
|
TOTAL LIABILITIES |
|
45,563 |
|
|
|
43,936 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
EQUITY |
|
|
|
Preferred stock $0.005 par value; 100,000,000 shares authorized; no
shares issued and outstanding |
|
— |
|
|
|
— |
|
Common stock $0.005 par value; 900,000,000 shares authorized;
443,549,000 and 442,793,000 shares issued and outstanding |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
7,620 |
|
|
|
7,340 |
|
Accumulated other comprehensive loss |
|
(1,842 |
) |
|
|
(1,805 |
) |
Retained earnings |
|
14,980 |
|
|
|
19,521 |
|
TOTAL EQUITY |
|
20,760 |
|
|
|
25,058 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
66,323 |
|
|
$ |
68,994 |
|
|
|
|
|
|
|
|
|
COSTCO
WHOLESALE CORPORATION |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(amounts in
millions) |
(unaudited) |
Subject to Reclassification |
|
|
|
24 Weeks
Ended |
|
February 18, 2024 |
|
February 12, 2023 |
CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Net income |
$ |
3,332 |
|
|
$ |
2,830 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
1,015 |
|
|
|
917 |
|
Non-cash lease expense |
|
148 |
|
|
|
216 |
|
Stock-based compensation |
|
580 |
|
|
|
549 |
|
Impairment of assets and other non-cash operating activities,
net |
|
(7 |
) |
|
|
145 |
|
Changes in working capital |
|
314 |
|
|
|
1,145 |
|
Net cash provided by operating activities |
|
5,382 |
|
|
|
5,802 |
|
CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Purchases of short-term investments |
|
(719 |
) |
|
|
(396 |
) |
Maturities and sales of short-term investments |
|
1,029 |
|
|
|
512 |
|
Additions to property and equipment |
|
(2,071 |
) |
|
|
(1,947 |
) |
Other investing activities, net |
|
9 |
|
|
|
(34 |
) |
Net cash used in investing activities |
|
(1,752 |
) |
|
|
(1,865 |
) |
CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
Repayments of short-term borrowings |
|
(409 |
) |
|
|
(520 |
) |
Proceeds from short-term borrowings |
|
383 |
|
|
|
479 |
|
Proceeds from issuance of long-term debt |
|
498 |
|
|
|
— |
|
Tax withholdings on stock-based awards |
|
(292 |
) |
|
|
(302 |
) |
Repurchases of common stock |
|
(322 |
) |
|
|
(284 |
) |
Cash dividend payments |
|
(8,012 |
) |
|
|
(400 |
) |
Financing lease payments |
|
(94 |
) |
|
|
(158 |
) |
Other financing activities, net |
|
(2 |
) |
|
|
(30 |
) |
Net cash used in financing activities |
|
(8,250 |
) |
|
|
(1,215 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS |
|
15 |
|
|
|
45 |
|
Net change in cash and cash equivalents |
|
(4,605 |
) |
|
|
2,767 |
|
CASH
AND CASH EQUIVALENTS BEGINNING OF YEAR |
|
13,700 |
|
|
|
10,203 |
|
CASH
AND CASH EQUIVALENTS END OF YEAR |
$ |
9,095 |
|
|
$ |
12,970 |
|
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