• Costco Wholesale Corporation Reports First Quarter Fiscal Year 2021 Operating Results

    Source: Nasdaq GlobeNewswire / 10 Dec 2020 16:15:00   America/New_York

    ISSAQUAH, Wash., Dec. 10, 2020 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2021, ended November 22, 2020.

    Net sales for the first quarter increased 16.9 percent, to $42.35 billion from $36.24 billion last year.

    Comparable sales for the first quarter fiscal 2021 were as follows:

      12 Weeks 12 Weeks 
        Adjusted* 
                   U.S.14.6% 17.0%               
     Canada16.2% 16.8% 
     Other International18.7% 17.7% 
          
     Total Company15.4% 17.1% 
          
     E-commerce86.4% 86.2% 
     
    *Excluding the impacts from changes in gasoline prices and foreign exchange.


    Net income for the quarter was $1,166 million, or $2.62 per diluted share, compared to $844 million, or $1.90 per diluted share, last year. This year’s first quarter included tax benefits of $145 million or $0.33 per diluted share, $0.16 of which was due to the deductibility of the $10 per share special cash dividend, to the extent received by the Company’s 401(k) plan participants; and $0.17 cents related to stock-based compensation. Last year’s first quarter included a $77 million or $0.17 per diluted share tax benefit related to stock-based compensation. This year’s results reflect an expense for COVID-19 premium wages of $212 million pre-tax or $0.35 per diluted share.

    Costco currently operates 803 warehouses, including 558 in the United States and Puerto Rico, 102 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, December 10, 2020, 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
     
    November 22, 2020
     
    November 24, 2019
    REVENUE   
    Net sales$42,347  $36,236 
    Membership fees861  804 
    Total revenue43,208  37,040 
    OPERATING EXPENSES   
    Merchandise costs37,458  32,233 
    Selling, general and administrative4,298  3,732 
    Preopening expenses22  14 
    Operating income1,430  1,061 
    OTHER INCOME (EXPENSE)   
    Interest expense(39) (38)
    Interest income and other, net29  35 
    INCOME BEFORE INCOME TAXES        1,420  1,058 
    Provision for income taxes239  202 
    Net income including noncontrolling interests1,181  856 
    Net income attributable to noncontrolling interests(15) (12)
    NET INCOME ATTRIBUTABLE TO COSTCO        $1,166  $844 
        
    NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:   
    Basic$2.63  $1.91 
    Diluted$2.62  $1.90 
        
    Shares used in calculation (000’s):   
    Basic442,952  441,818 
    Diluted444,386  443,680 
        



    COSTCO WHOLESALE CORPORATION
    CONSOLIDATED BALANCE SHEETS
    (amounts in millions, except par value and share data)
    (unaudited)

    Subject to Reclassification

       November 22, 2020 August 30, 2020
    ASSETS   
    CURRENT ASSETS   
    Cash and cash equivalents$13,590  $12,277 
    Short-term investments833  1,028 
    Receivables, net1,646  1,550 
    Merchandise inventories14,901  12,242 
    Other current assets1,126  1,023 
    Total current assets32,096  28,120 
    OTHER ASSETS   
    Property and equipment, net22,288  21,807 
    Operating lease right-of-use assets2,785  2,788 
    Other long-term assets3,048  2,841 
    TOTAL ASSETS        $60,217  $55,556 
    LIABILITIES AND EQUITY   
    CURRENT LIABILITIES   
    Accounts payable$17,014  $14,172 
    Accrued salaries and benefits3,586  3,605 
    Accrued member rewards1,451  1,393 
    Deferred membership fees1,985  1,851 
    Current portion of long-term debt96  95 
    Other current liabilities8,535  3,728 
    Total current liabilities32,667  24,844 
    OTHER LIABILITIES   
    Long-term debt, excluding current portion7,529  7,514 
    Long-term operating lease liabilities2,574  2,558 
    Other long-term liabilities2,138  1,935 
    TOTAL LIABILITIES        44,908  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; 442,955,000
    and 441,255,000 shares issued and outstanding
    4  4 
    Additional paid-in capital6,725  6,698 
    Accumulated other comprehensive loss(1,101) (1,297)
    Retained earnings9,232  12,879 
    Total Costco stockholders’ equity14,860  18,284 
    Noncontrolling interests449  421 
    TOTAL EQUITY        15,309  18,705 
    TOTAL LIABILITIES AND EQUITY        $60,217  $55,556 

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