Costco Wholesale Corporation Reports First Quarter Fiscal Year 2020 Operating Results

Thursday, 12. December 2019 22:15

ISSAQUAH, Wash., Dec. 12, 2019 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2020, ended November 24, 2019.

Net sales for the first quarter were $36.24 billion, an increase of 5.6 percent from $34.31 billion last year.

Comparable sales for the first quarter fiscal 2020 were as follows:

  12 Weeks 12 Weeks 
    Adjusted* 
 U.S.4.7% 5.0% 
 Canada2.9% 5.1% 
 Other International3.2% 4.5% 
      
 Total Company4.3% 5.0% 
      
 E-commerce5.5% 5.7% 

*Excluding the impacts from changes in gasoline prices and foreign exchange.

Total and comparable sales were negatively impacted by approximately one-half percent due to Thanksgiving occurring a week later this year. E-commerce sales in the quarter were negatively impacted by an estimated 12 percentage points.

Net income for the quarter was $844 million, or $1.90 per diluted share, compared to $767 million, or $1.73 per diluted share, last year. This year’s first quarter reflects a $77 million ($0.17 per diluted share) tax benefit related to stock-based compensation, compared to a $59 million ($0.13 per diluted share) similar benefit last year.

Costco currently operates 785 warehouses, including 546 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two 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, and Japan.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, December 12, 2019, 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, 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (dollars in millions, except per share data)
(unaudited)
   
  12 Weeks Ended
     
  November 24, 2019
 November 25, 2018
 REVENUE       
 Net sales$36,236  $34,311 
 Membership fees 804   758 
 Total revenue$37,040   35,069 
 OPERATING EXPENSES       
 Merchandise costs 32,233   30,623 
 Selling, general and administrative 3,732   3,475 
 Preopening expenses 14   22 
 Operating income 1,061   949 
 OTHER INCOME (EXPENSE)       
 Interest expense (38)  (36)
 Interest income and other, net 35   22 
 INCOME BEFORE INCOME TAXES 1,058   935 
 Provision for income taxes 202   158 
 Net income including noncontrolling interests 856   777 
 Net income attributable to noncontrolling interests (12)  (10)
 NET INCOME ATTRIBUTABLE TO COSTCO$844  $767 
         
 NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
 Basic$1.91  $1.75 
 Diluted$1.90  $1.73 
         
 Shares used in calculation (000’s):       
 Basic 441,818   439,157 
 Diluted 443,680   442,749 
         


     
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
     
 Subject to ReclassificationNovember 24, 2019 September 1, 2019
 ASSETS   
 CURRENT ASSETS   
 Cash and cash equivalents$9,027  $8,384 
 Short-term investments993  1,060 
 Receivables, net1,711  1,535 
 Merchandise inventories13,818  11,395 
 Other current assets1,094  1,111 
 Total current assets26,643  23,485 
 PROPERTY AND EQUIPMENT   
 Land6,533  6,417 
 Buildings and improvements17,712  17,136 
 Equipment and fixtures8,243  7,801 
 Construction in progress803  1,272 
 Accumulated depreciation and amortization(12,054) (11,736)
 Net property and equipment21,237  20,890 
 OTHER ASSETS   
 Operating lease right-of-use assets2,508   
 Other long-term assets954  1,025 
 TOTAL ASSETS$51,342  $45,400 
 LIABILITIES AND EQUITY   
 CURRENT LIABILITIES   
 Accounts payable$14,440  $11,679 
 Accrued salaries and benefits3,159  3,176 
 Accrued member rewards1,193  1,180 
 Deferred membership fees1,817  1,711 
 Current portion of long-term debt1,700  1,699 
 Other current liabilities3,956  3,792 
 Total current liabilities26,265  23,237 
 LONG-TERM LIABILITIES   
 Long-term debt, excluding current portion5,107  5,124 
 Long-term operating lease liabilities2,353   
 Other long-term liabilities1,393  1,455 
 TOTAL LIABILITIES35,118  29,816 
 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; 441,778,000 and 439,625,000 shares issued and outstanding4  4 
 Additional paid-in capital6,391  6,417 
 Accumulated other comprehensive loss(1,321) (1,436)
 Retained earnings10,787  10,258 
 Total Costco stockholders’ equity15,861  15,243 
 Noncontrolling interests363  341 
 TOTAL EQUITY16,224  15,584 
 TOTAL LIABILITIES AND EQUITY$51,342  $45,400 
         

 

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