Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq:
COST) today announced its operating results for the 16-week fourth
quarter and the 52-week fiscal year, ended August 29, 2021.
Net sales for the quarter increased 17.5
percent, to $61.44 billion from $52.28 billion last year. Net sales
for the fiscal year increased 17.7 percent, to $192.05 billion from
$163.22 billion last year.
Comparable sales for the fourth quarter and the
fiscal year were as follows:
|
|
16 Weeks |
|
16 Weeks |
|
52 Weeks |
|
52 Weeks |
|
|
|
|
|
Adjusted* |
|
|
|
Adjusted* |
|
|
U.S. |
14.9% |
|
10.3% |
|
14.8% |
|
13.6% |
|
|
Canada |
19.5% |
|
6.7% |
|
20.0% |
|
12.1% |
|
|
Other
International |
15.0% |
|
7.3% |
|
19.1% |
|
13.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company |
15.5% |
|
9.4% |
|
16.0% |
|
13.4% |
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce |
11.2% |
|
8.9% |
|
44.4% |
|
42.6% |
|
|
|
|
|
|
|
|
|
|
|
*Excluding the impacts from changes in gasoline
prices and foreign exchange.
Net income for the fourth quarter was $1.670
billion, or $3.76 per diluted share, compared to $1.389 billion, or
$3.13 last year. This year’s fourth quarter was negatively impacted
by a write-off of certain information technology assets of $84
million pre-tax ($0.14 per diluted share). Last year’s fourth
quarter was negatively impacted by incremental expense related to
COVID-19 premium wages and sanitation costs of $281 million pretax
($0.47 per diluted share) and a $36 million pretax charge ($0.06
per diluted share) related to the prepayment of $1.5 billion of
debt, partially offset by an $84 million pretax benefit ($0.15 per
diluted share) for the partial reversal of a reserve related to a
product tax assessment taken in fiscal year 2019.
Net income for the fiscal year was $5.01
billion, or $11.27 per diluted share, compared to $4.00 billion, or
$9.02 per diluted share in the prior year.
Costco currently operates 817 warehouses,
including 565 in the United States and Puerto Rico, 105 in Canada,
39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea,
14 in Taiwan, 13 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, September 23, 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,
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),
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 for products,
reduced workforces due to illness, quarantine, or government
mandates, temporary store closures or operational limitations due
to 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)
|
16 Weeks Ended |
|
52 Weeks
Ended |
|
August 29, 2021 |
|
August 30, 2020 |
|
August 29, 2021 |
|
August 30, 2020 |
REVENUE |
|
|
|
|
|
|
|
Net sales |
$ |
61,441 |
|
|
$ |
52,277 |
|
|
$ |
192,052 |
|
|
$ |
163,220 |
|
Membership fees |
1,234 |
|
|
1,106 |
|
|
3,877 |
|
|
3,541 |
|
Total revenue |
62,675 |
|
|
53,383 |
|
|
195,929 |
|
|
166,761 |
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
Merchandise costs |
54,733 |
|
|
46,401 |
|
|
170,684 |
|
|
144,939 |
|
Selling, general and administrative |
5,632 |
|
|
5,027 |
|
|
18,461 |
|
|
16,332 |
|
Preopening expenses |
35 |
|
|
26 |
|
|
76 |
|
|
55 |
|
Operating income |
2,275 |
|
|
1,929 |
|
|
6,708 |
|
|
5,435 |
|
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
Interest expense |
(52 |
) |
|
(51 |
) |
|
(171 |
) |
|
(160 |
) |
Interest income and other, net |
68 |
|
|
(9 |
) |
|
143 |
|
|
92 |
|
INCOME BEFORE INCOME
TAXES |
2,291 |
|
|
1,869 |
|
|
6,680 |
|
|
5,367 |
|
Provision for income taxes |
597 |
|
|
465 |
|
|
1,601 |
|
|
1,308 |
|
Net income including noncontrolling interests |
1,694 |
|
|
1,404 |
|
|
5,079 |
|
|
4,059 |
|
Net income attributable to noncontrolling interests |
(24 |
) |
|
(15 |
) |
|
(72 |
) |
|
(57 |
) |
NET
INCOME ATTRIBUTABLE TO
COSTCO |
$ |
1,670 |
|
|
$ |
1,389 |
|
|
$ |
5,007 |
|
|
$ |
4,002 |
|
|
|
|
|
|
|
|
|
NET
INCOME PER COMMON SHARE ATTRIBUTABLE TO
COSTCO: |
|
|
|
|
|
|
|
Basic |
$ |
3.77 |
|
|
$ |
3.14 |
|
|
$ |
11.30 |
|
|
$ |
9.05 |
|
Diluted |
$ |
3.76 |
|
|
$ |
3.13 |
|
|
$ |
11.27 |
|
|
$ |
9.02 |
|
|
|
|
|
|
|
|
|
Shares used
in calculation (000’s): |
|
|
|
|
|
|
|
Basic |
443,193 |
|
|
442,843 |
|
|
443,089 |
|
|
442,297 |
|
Diluted |
444,369 |
|
|
444,231 |
|
|
444,346 |
|
|
443,901 |
|
|
|
|
|
|
|
|
|
COSTCO WHOLESALE
CORPORATION CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share
data) (unaudited)
Subject to Reclassification
|
August 29, 2021 |
|
August 30, 2020 |
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
11,258 |
|
|
$ |
12,277 |
|
Short-term investments |
917 |
|
|
1,028 |
|
Receivables, net |
1,803 |
|
|
1,550 |
|
Merchandise inventories |
14,215 |
|
|
12,242 |
|
Other current assets |
1,312 |
|
|
1,023 |
|
Total current assets |
29,505 |
|
|
28,120 |
|
OTHER ASSETS |
|
|
|
Property and equipment, net |
23,492 |
|
|
21,807 |
|
Operating lease right-of-use assets |
2,890 |
|
|
2,788 |
|
Other long-term assets |
3,381 |
|
|
2,841 |
|
TOTAL
ASSETS |
$ |
59,268 |
|
|
$ |
55,556 |
|
LIABILITIES
AND EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts payable |
$ |
16,278 |
|
|
$ |
14,172 |
|
Accrued salaries and benefits |
4,090 |
|
|
3,605 |
|
Accrued member rewards |
1,671 |
|
|
1,393 |
|
Deferred membership fees |
2,042 |
|
|
1,851 |
|
Current portion of long-term debt |
799 |
|
|
95 |
|
Other current liabilities |
4,561 |
|
|
3,728 |
|
Total current liabilities |
29,441 |
|
|
24,844 |
|
OTHER LIABILITIES |
|
|
|
Long-term debt, excluding current portion |
6,692 |
|
|
7,514 |
|
Long-term operating lease liabilities |
2,642 |
|
|
2,558 |
|
Other long-term liabilities |
2,415 |
|
|
1,935 |
|
TOTAL
LIABILITIES |
41,190 |
|
|
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;
441,825,000 and 441,255,000 shares issued and outstanding |
4 |
|
|
4 |
|
Additional paid-in capital |
7,031 |
|
|
6,698 |
|
Accumulated other comprehensive loss |
(1,137 |
) |
|
(1,297 |
) |
Retained earnings |
11,666 |
|
|
12,879 |
|
Total Costco stockholders’ equity |
17,564 |
|
|
18,284 |
|
Noncontrolling interests |
514 |
|
|
421 |
|
TOTAL
EQUITY |
18,078 |
|
|
18,705 |
|
TOTAL LIABILITIES AND
EQUITY |
$ |
59,268 |
|
|
$ |
55,556 |
|
|
|
|
|
|
|
|
|
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