• Costco Wholesale Corporation Reports First Quarter Fiscal Year 2023 Operating Results

    Source: Nasdaq GlobeNewswire / 08 Dec 2022 16:15:00   America/New_York

    ISSAQUAH, Wash., Dec. 08, 2022 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2023, ended November 20, 2022.

    Net sales for the first quarter increased 8.1 percent, to $53.44 billion from $49.42 billion last year.

    Comparable sales for the first quarter fiscal 2023 were as follows:

        
     12 Weeks 12 Weeks
       Adjusted*
    U.S.9.3% 6.5%
    Canada2.4% 8.3%
    Other International-3.1% 9.1%
        
    Total Company6.6% 7.1%
        
    E-commerce-3.7% -2.0%
        

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

    Net income for the quarter was $1,364 million, $3.07 per diluted share, compared to $1,324 million, $2.98 per diluted share, last year. This year’s results included a charge of $93 million pre-tax, $0.15 per diluted share, primarily related to downsizing our charter shipping activities, and a tax benefit of $53 million, $0.12 per diluted share, related to stock-based compensation. Last year’s results included a write-off of certain information technology assets of $118 million pre-tax, $0.20 per diluted share, and a tax benefit of $91 million, $0.21 per diluted share, related to stock-based compensation.

    Costco currently operates 847 warehouses, including 583 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, December 8, 2022, 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 and the Ukraine conflict), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, COVID-19 related factors and challenges, 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

    COST-Earn

     
     
    COSTCO WHOLESALE CORPORATION
    CONSOLIDATED STATEMENTS OF INCOME
    (dollars in millions, except per share data)
    (unaudited)
     
     12 Weeks Ended
     

    		November 20, 2022 November 21, 2021
    REVENUE   
    Net sales$53,437  $49,417 
    Membership fees 1,000   946 
    Total revenue 54,437   50,363 
    OPERATING EXPENSES   
    Merchandise costs 47,769   43,952 
    Selling, general and administrative 4,917   4,718 
    Operating income 1,751   1,693 
    OTHER INCOME (EXPENSE)   
    Interest expense (34)  (39)
    Interest income and other, net 53   42 
    INCOME BEFORE INCOME TAXES 1,770   1,696 
    Provision for income taxes 406   351 
    Net income including noncontrolling interests 1,364   1,345 
    Net income attributable to noncontrolling interests —   (21)
    NET INCOME ATTRIBUTABLE TO COSTCO$1,364  $1,324 
        
    NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:   
    Basic$3.07  $2.99 
    Diluted$3.07  $2.98 
        
    Shares used in calculation (000s):   
    Basic 443,837   443,377 
    Diluted 444,531   444,604 
        


     
    COSTCO WHOLESALE CORPORATION
    CONSOLIDATED BALANCE SHEETS
    (amounts in millions, except par value and share data)
    (unaudited)
     
    Subject to Reclassification
     
     November 20, 2022 August 28, 2022
    ASSETS   
    CURRENT ASSETS   
    Cash and cash equivalents        $10,856  $10,203 
    Short-term investments         817   846 
    Receivables, net         2,312   2,241 
    Merchandise inventories         18,571   17,907 
    Other current assets         1,594   1,499 
    Total current assets         34,150   32,696 
    OTHER ASSETS   
    Property and equipment, net         25,144   24,646 
    Operating lease right-of-use assets         2,787   2,774 
    Other long-term assets         3,946   4,050 
    TOTAL ASSETS        $66,027  $64,166 
    LIABILITIES AND EQUITY   
    CURRENT LIABILITIES   
    Accounts payable        $18,348  $17,848 
    Accrued salaries and benefits         4,317   4,381 
    Accrued member rewards         1,959   1,911 
    Deferred membership fees         2,322   2,174 
    Current portion of long-term debt         71   73 
    Other current liabilities         6,050   5,611 
    Total current liabilities         33,067   31,998 
    OTHER LIABILITIES   
    Long-term debt, excluding current portion         6,472   6,484 
    Long-term operating lease liabilities         2,503   2,482 
    Other long-term liabilities         2,509   2,555 
    TOTAL LIABILITIES         44,551   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; 443,841,000 and 442,664,000 shares issued and outstanding         2   2 
    Additional paid-in capital         6,982   6,884 
    Accumulated other comprehensive loss         (1,925)  (1,829)
    Retained earnings         16,412   15,585 
    Total Costco stockholders’ equity         21,471   20,642 
    Noncontrolling interests         5   5 
    TOTAL EQUITY         21,476   20,647 
    TOTAL LIABILITIES AND EQUITY        $66,027  $64,166 

     


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