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 2021, ended
February 14, 2021.
Net sales for the quarter increased 14.7
percent, to $43.89 billion, from $38.26 billion last year. Net
sales for the first 24 weeks increased 15.8 percent, to $86.23
billion, from $74.49 billion last year.
Comparable sales for the second quarter fiscal
2021 were as follows:
|
|
|
12 Weeks |
|
12 Weeks |
|
24 Weeks |
|
24 Weeks |
|
|
|
|
|
Adjusted* |
|
|
|
Adjusted* |
|
|
U.S. |
11.4% |
|
12.6% |
|
13.0% |
|
14.7% |
|
|
Canada |
13.4% |
|
10.6% |
|
14.8% |
|
13.6% |
|
|
Other International |
21.5% |
|
17.7% |
|
20.2% |
|
17.7% |
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
13.0% |
|
12.9% |
|
14.2% |
|
15.0% |
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce |
75.8% |
|
74.8% |
|
80.4% |
|
79.7% |
|
|
|
*Excluding the impacts from changes in gasoline prices and foreign
exchange. |
|
|
Net income for the quarter was $951 million, or
$2.14 per diluted share, which includes $246 million pretax, or
$0.41 per diluted share, in costs incurred primarily from COVID-19
premium wages. Last year’s second quarter net income was $931
million, or $2.10 per diluted share. Net income for the first 24
weeks was $2.12 billion, or $4.76 per diluted share, compared to
$1.77 billion, or $4.00 per diluted share, last year.
For the four-week reporting month of February,
ended February 28, 2021, the Company reported net sales of $14.05
billion, an increase of 15.2 percent from $12.20 billion last year.
For the twenty-six week period ended February 28, 2021, net sales
were $93.16 billion, an increase of 15.4 percent from $80.76
billion last year.
Comparable sales for the February and
year-to-date periods ended February 28, 2021, were as follows:
|
|
|
|
|
4 Weeks |
|
4 Weeks |
|
26 Weeks |
|
26 Weeks |
|
|
|
|
|
Adjusted* |
|
|
|
Adjusted* |
|
|
U.S. |
10.3% |
|
10.3% |
|
12.4% |
|
14.0% |
|
|
Canada |
21.6% |
|
15.7% |
|
15.0% |
|
13.5% |
|
|
Other International |
25.7% |
|
20.6% |
|
20.0% |
|
17.2% |
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
13.8% |
|
12.3% |
|
13.8% |
|
14.3% |
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce |
91.1% |
|
89.4% |
|
81.0% |
|
80.3% |
|
|
|
|
*Excluding the
impacts from changes in gasoline prices and foreign exchange. |
|
|
|
|
Costco currently operates 804 warehouses,
including 558 in the United States and Puerto Rico, 103 in Canada,
39 in Mexico, 29 in the United Kingdom, 27 in Japan, 16 in Korea,
14 in Taiwan, 12 in Australia, three in Spain, and one each in
Iceland, France, and China. 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 4, 2021, and is available
via a webcast on www.costco.com (click on Investor Relations and
“Play Webcast”).
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,
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), the
ability to maintain effective internal control over financial
reporting, COVID-19 related factors and challenges, including
(among others) the duration of the pandemic, the unknown long-term
economic impact, reduced shopping due to illness, travel
restrictions or financial hardship, shifts in demand away from
discretionary or higher-priced products, reduced workforces due to
illness, quarantine, or government mandates, temporary store
closures due to reduced workforces or government mandates, or
supply-chain disruptions, capacity constraints of third-party
logistics suppliers, 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.
|
|
CONTACTS: |
Costco Wholesale Corporation |
|
Richard Galanti, 425/313-8203 |
|
Bob Nelson, 425/313-8255 |
|
David Sherwood, 425/313-8239 |
|
Josh Dahmen, 425/313-8254 |
|
COSTCO WHOLESALE CORPORATION |
CONSOLIDATED STATEMENTS OF INCOME |
(dollars in millions, except per share data) |
(unaudited) |
|
|
|
|
|
12 Weeks Ended |
|
24 Weeks Ended |
|
February 14, 2021 |
|
February 16, 2020 |
|
February 14, 2021 |
|
February 16, 2020 |
REVENUE |
|
|
|
|
|
|
|
Net
sales |
$ |
43,888 |
|
|
|
$ |
38,256 |
|
|
|
$ |
86,235 |
|
|
|
$ |
74,492 |
|
|
Membership
fees |
881 |
|
|
|
816 |
|
|
|
1,742 |
|
|
|
1,620 |
|
|
Total revenue |
44,769 |
|
|
|
39,072 |
|
|
|
87,977 |
|
|
|
76,112 |
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
Merchandise
costs |
39,078 |
|
|
|
34,056 |
|
|
|
76,536 |
|
|
|
66,289 |
|
|
Selling, general and
administrative |
4,342 |
|
|
|
3,743 |
|
|
|
8,640 |
|
|
|
7,475 |
|
|
Preopening
expenses |
9 |
|
|
|
7 |
|
|
|
31 |
|
|
|
21 |
|
|
Operating
income |
1,340 |
|
|
|
1,266 |
|
|
|
2,770 |
|
|
|
2,327 |
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
Interest
expense |
(40 |
) |
|
|
(34 |
) |
|
|
(79 |
) |
|
|
(72 |
) |
|
Interest income and other,
net |
19 |
|
|
|
45 |
|
|
|
48 |
|
|
|
80 |
|
|
INCOME BEFORE INCOME
TAXES |
1,319 |
|
|
|
1,277 |
|
|
|
2,739 |
|
|
|
2,335 |
|
|
Provision for income
taxes |
348 |
|
|
|
330 |
|
|
|
587 |
|
|
|
532 |
|
|
Net income including noncontrolling
interests |
971 |
|
|
|
947 |
|
|
|
2,152 |
|
|
|
1,803 |
|
|
Net income attributable to noncontrolling
interests |
(20 |
) |
|
|
(16 |
) |
|
|
(35 |
) |
|
|
(28 |
) |
|
NET INCOME ATTRIBUTABLE TO
COSTCO |
$ |
951 |
|
|
|
$ |
931 |
|
|
|
$ |
2,117 |
|
|
|
$ |
1,775 |
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO
COSTCO: |
|
|
|
|
|
|
|
Basic |
$ |
2.15 |
|
|
|
$ |
2.10 |
|
|
|
$ |
4.78 |
|
|
|
$ |
4.02 |
|
|
Diluted |
$ |
2.14 |
|
|
|
$ |
2.10 |
|
|
|
$ |
4.76 |
|
|
|
$ |
4.00 |
|
|
|
|
|
|
|
|
|
|
Shares used in calculation (000s): |
|
|
|
|
|
|
|
Basic |
443,134 |
|
|
|
442,021 |
|
|
|
443,043 |
|
|
|
441,920 |
|
|
Diluted |
444,494 |
|
|
|
443,727 |
|
|
|
444,440 |
|
|
|
443,704 |
|
|
|
|
|
|
|
|
|
|
|
COSTCO WHOLESALE CORPORATION |
CONSOLIDATED BALANCE SHEETS |
(amounts in millions, except par value and share
data) |
(unaudited) |
|
Subject to Reclassification |
|
|
February 14, 2021 |
|
August 30, 2020 |
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
8,637 |
|
|
|
$ |
12,277 |
|
|
Short-term investments |
617 |
|
|
|
1,028 |
|
|
Receivables, net |
1,934 |
|
|
|
1,550 |
|
|
Merchandise inventories |
13,865 |
|
|
|
12,242 |
|
|
Other current assets |
1,255 |
|
|
|
1,023 |
|
|
Total current assets |
26,308 |
|
|
|
28,120 |
|
|
OTHER ASSETS |
|
|
|
Property and equipment, net |
22,531 |
|
|
|
21,807 |
|
|
Operating lease right-of-use assets |
2,887 |
|
|
|
2,788 |
|
|
Other long-term assets |
3,192 |
|
|
|
2,841 |
|
|
TOTAL ASSETS |
$ |
54,918 |
|
|
|
$ |
55,556 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts payable |
$ |
14,383 |
|
|
|
$ |
14,172 |
|
|
Accrued salaries and benefits |
4,132 |
|
|
|
3,605 |
|
|
Accrued member rewards |
1,541 |
|
|
|
1,393 |
|
|
Deferred membership fees |
2,048 |
|
|
|
1,851 |
|
|
Current portion of long-term debt |
95 |
|
|
|
95 |
|
|
Other current liabilities |
4,365 |
|
|
|
3,728 |
|
|
Total current liabilities |
26,564 |
|
|
|
24,844 |
|
|
OTHER LIABILITIES |
|
|
|
Long-term debt, excluding current portion |
7,522 |
|
|
|
7,514 |
|
|
Long-term operating lease liabilities |
2,651 |
|
|
|
2,558 |
|
|
Other long-term liabilities |
2,052 |
|
|
|
1,935 |
|
|
TOTAL LIABILITIES |
38,789 |
|
|
|
36,851 |
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
EQUITY |
|
|
|
Preferred stock $0.01 par value; 100,000,000 shares authorized; no
shares issued and outstanding |
— |
|
|
|
— |
|
|
Common stock $0.01 par value; 900,000,000 shares authorized;
442,654,000 and 441,255,000 shares issued and outstanding |
4 |
|
|
|
4 |
|
|
Additional paid-in capital |
6,843 |
|
|
|
6,698 |
|
|
Accumulated other comprehensive loss |
(961 |
) |
|
|
(1,297 |
) |
|
Retained earnings |
9,766 |
|
|
|
12,879 |
|
|
Total Costco stockholders’ equity |
15,652 |
|
|
|
18,284 |
|
|
Noncontrolling interests |
477 |
|
|
|
421 |
|
|
TOTAL EQUITY |
16,129 |
|
|
|
18,705 |
|
|
TOTAL LIABILITIES AND
EQUITY |
$ |
54,918 |
|
|
|
$ |
55,556 |
|
|
|
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