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 2023, ended
February 12, 2023.
Net sales for the quarter increased 6.5 percent,
to $54.24 billion, from $50.94 billion last year. Net sales for the
first 24 weeks increased 7.3 percent, to $107.68 billion, from
$100.35 billion last year.
Comparable sales for the second quarter and
first 24 weeks of fiscal 2023 were as follows:
|
|
12 Weeks |
|
12 Weeks |
|
24 Weeks |
|
24 Weeks |
|
|
|
|
|
Adjusted* |
|
|
|
Adjusted* |
|
|
U.S. |
5.7% |
|
5.8% |
|
7.5% |
|
6.2% |
|
|
Canada |
3.5% |
|
9.6% |
|
2.9% |
|
8.9% |
|
|
Other
International |
3.8% |
|
9.5% |
|
0.4% |
|
9.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company |
5.2% |
|
6.8% |
|
5.9% |
|
7.0% |
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce |
-9.6% |
|
-8.7% |
|
-6.8% |
|
-5.5% |
|
*Excluding the impacts from changes in gasoline
prices and foreign exchange.
Net income for the quarter was $1,466 million,
$3.30 per diluted share. Last year’s second quarter net income was
$1,299 million, $2.92 per diluted share. Net income for the first
24 weeks was $2.83 billion, or $6.37 per diluted share, compared to
$2.62 billion, $5.90 per diluted share, last year.
For the four-week reporting month of February,
ended February 26, 2023, the Company reported net sales of $17.06
billion, an increase of 4.7 percent from $16.29 billion last year.
Lunar New Year/Chinese New Year occurred on January 22, 10 days
earlier this year. The shift positively impacted February’s Other
International and Total Company sales by approximately 2% and
0.25%, respectively. For the twenty-six week period ended February
26, 2023, net sales were $116.06 billion, an increase of 7.1
percent from $108.39 billion last year.
Comparable sales for the February and
year-to-date periods ended February 26, 2023, were as follows:
|
|
4 Weeks |
|
4 Weeks |
|
26 Weeks |
|
26 Weeks |
|
|
|
|
|
Adjusted* |
|
|
|
Adjusted* |
|
|
U.S. |
3.4% |
|
3.5% |
|
7.1% |
|
6.0% |
|
|
Canada |
1.2% |
|
7.3% |
|
2.7% |
|
8.8% |
|
|
Other
International |
6.5% |
|
11.5% |
|
0.7% |
|
9.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company |
3.5% |
|
5.0% |
|
5.6% |
|
6.8% |
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce |
-11.2% |
|
-10.3% |
|
-7.0% |
|
-5.7% |
|
*Excluding the impacts from changes in gasoline
prices and foreign exchange.
Costco currently operates 848 warehouses,
including 584 in the United States and Puerto Rico, 107 in Canada,
40 in Mexico, 31 in Japan, 29 in the United Kingdom, 18 in Korea,
14 in Taiwan, 14 in Australia, four in Spain, two each in France
and China, 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 2, 2023, 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.
CONTACTS: |
Costco
Wholesale Corporation |
|
Richard Galanti, 425/313-8203 |
|
David Sherwood, 425/313-8239 |
|
Josh Dahmen, 425/313-8254 |
COST-Earn COST-Sales
COSTCO WHOLESALE
CORPORATION CONSOLIDATED STATEMENTS OF
INCOME (dollars in millions, except per share
data) (unaudited)
|
12 Weeks
Ended |
|
24 Weeks
Ended |
|
February 12, 2023 |
|
February 13, 2022 |
|
February 12, 2023 |
|
February 13, 2022 |
REVENUE |
|
|
|
|
|
|
|
Net sales |
$ |
54,239 |
|
|
$ |
50,937 |
|
|
$ |
107,676 |
|
|
$ |
100,354 |
|
Membership fees |
|
1,027 |
|
|
|
967 |
|
|
|
2,027 |
|
|
|
1,913 |
|
Total revenue |
|
55,266 |
|
|
|
51,904 |
|
|
|
109,703 |
|
|
|
102,267 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
Merchandise costs |
|
48,423 |
|
|
|
45,517 |
|
|
|
96,192 |
|
|
|
89,469 |
|
Selling, general and administrative |
|
4,940 |
|
|
|
4,575 |
|
|
|
9,857 |
|
|
|
9,293 |
|
Operating income |
|
1,903 |
|
|
|
1,812 |
|
|
|
3,654 |
|
|
|
3,505 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
Interest expense |
|
(34 |
) |
|
|
(36 |
) |
|
|
(68 |
) |
|
|
(75 |
) |
Interest income and other, net |
|
114 |
|
|
|
25 |
|
|
|
167 |
|
|
|
67 |
|
INCOME BEFORE INCOME TAXES |
|
1,983 |
|
|
|
1,801 |
|
|
|
3,753 |
|
|
|
3,497 |
|
Provision for income taxes |
|
517 |
|
|
|
481 |
|
|
|
923 |
|
|
|
832 |
|
Net income including noncontrolling interests |
|
1,466 |
|
|
|
1,320 |
|
|
|
2,830 |
|
|
|
2,665 |
|
Net income attributable to noncontrolling interests |
|
— |
|
|
|
(21 |
) |
|
|
— |
|
|
|
(42 |
) |
NET
INCOME ATTRIBUTABLE TO COSTCO |
$ |
1,466 |
|
|
$ |
1,299 |
|
|
$ |
2,830 |
|
|
$ |
2,623 |
|
|
|
|
|
|
|
|
|
NET
INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: |
|
|
|
|
|
|
|
Basic |
$ |
3.30 |
|
|
$ |
2.93 |
|
|
$ |
6.37 |
|
|
$ |
5.91 |
|
Diluted |
$ |
3.30 |
|
|
$ |
2.92 |
|
|
$ |
6.37 |
|
|
$ |
5.90 |
|
|
|
|
|
|
|
|
|
Shares used
in calculation (000s): |
|
|
|
|
|
|
|
Basic |
|
443,877 |
|
|
|
443,623 |
|
|
|
443,857 |
|
|
|
443,500 |
|
Diluted |
|
444,475 |
|
|
|
444,916 |
|
|
|
444,503 |
|
|
|
444,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTCO WHOLESALE
CORPORATION CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share
data) (unaudited)
Subject to Reclassification
|
|
|
February 12, 2023 |
|
August 28, 2022 |
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
12,970 |
|
|
$ |
10,203 |
|
Short-term investments |
|
735 |
|
|
|
846 |
|
Receivables, net |
|
2,714 |
|
|
|
2,241 |
|
Merchandise inventories |
|
16,081 |
|
|
|
17,907 |
|
Other current assets |
|
1,830 |
|
|
|
1,499 |
|
Total current assets |
|
34,330 |
|
|
|
32,696 |
|
OTHER ASSETS |
|
|
|
Property and equipment, net |
|
25,724 |
|
|
|
24,646 |
|
Operating lease right-of-use assets |
|
2,859 |
|
|
|
2,774 |
|
Other long-term assets |
|
3,935 |
|
|
|
4,050 |
|
TOTAL ASSETS |
$ |
66,848 |
|
|
$ |
64,166 |
|
LIABILITIES
AND EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts payable |
$ |
16,407 |
|
|
$ |
17,848 |
|
Accrued salaries and benefits |
|
4,483 |
|
|
|
4,381 |
|
Accrued member rewards |
|
2,016 |
|
|
|
1,911 |
|
Deferred membership fees |
|
2,412 |
|
|
|
2,174 |
|
Current portion of long-term debt |
|
76 |
|
|
|
73 |
|
Other current liabilities |
|
7,122 |
|
|
|
5,611 |
|
Total current liabilities |
|
32,516 |
|
|
|
31,998 |
|
OTHER LIABILITIES |
|
|
|
Long-term debt, excluding current portion |
|
6,506 |
|
|
|
6,484 |
|
Long-term operating lease liabilities |
|
2,557 |
|
|
|
2,482 |
|
Other long-term liabilities |
|
2,470 |
|
|
|
2,555 |
|
TOTAL LIABILITIES |
|
44,049 |
|
|
|
43,519 |
|
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;
443,550,000 and 442,664,000 shares issued and outstanding |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
7,123 |
|
|
|
6,884 |
|
Accumulated other comprehensive loss |
|
(1,672 |
) |
|
|
(1,829 |
) |
Retained earnings |
|
17,341 |
|
|
|
15,585 |
|
Total Costco stockholders’ equity |
|
22,794 |
|
|
|
20,642 |
|
Noncontrolling interests |
|
5 |
|
|
|
5 |
|
TOTAL
EQUITY |
|
22,799 |
|
|
|
20,647 |
|
TOTAL LIABILITIES AND
EQUITY |
$ |
66,848 |
|
|
$ |
64,166 |
|
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