• Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2021 and February Sales Results

    Source: Nasdaq GlobeNewswire / 04 Mar 2021 16:15:00   America/New_York

    ISSAQUAH, Wash., March 04, 2021 (GLOBE NEWSWIRE) -- 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 2021, ended February 14, 2021.

    Net sales for the quarter increased 14.7 percent, to $43.89 billion, from $38.26 billion last year. Net sales for the first 24 weeks increased 15.8 percent, to $86.23 billion, from $74.49 billion last year.

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

      12 Weeks 12 Weeks 24 Weeks 24 Weeks 
        Adjusted*   Adjusted* 
     U.S.11.4% 12.6% 13.0% 14.7% 
     Canada13.4% 10.6% 14.8% 13.6% 
     Other International21.5% 17.7% 20.2% 17.7% 
     Total Company13.0% 12.9% 14.2% 15.0% 
     E-commerce75.8% 74.8% 80.4% 79.7% 
    *Excluding the impacts from changes in gasoline prices and foreign exchange.

    Net income for the quarter was $951 million, or $2.14 per diluted share, which includes $246 million pretax, or $0.41 per diluted share, in costs incurred primarily from COVID-19 premium wages. Last year’s second quarter net income was $931 million, or $2.10 per diluted share. Net income for the first 24 weeks was $2.12 billion, or $4.76 per diluted share, compared to $1.77 billion, or $4.00 per diluted share, last year.

    For the four-week reporting month of February, ended February 28, 2021, the Company reported net sales of $14.05 billion, an increase of 15.2 percent from $12.20 billion last year. For the twenty-six week period ended February 28, 2021, net sales were $93.16 billion, an increase of 15.4 percent from $80.76 billion last year.

    Comparable sales for the February and year-to-date periods ended February 28, 2021, were as follows:

      4 Weeks 4 Weeks 26 Weeks 26 Weeks 
        Adjusted*   Adjusted* 
     U.S.10.3% 10.3% 12.4% 14.0% 
     Canada21.6% 15.7% 15.0% 13.5% 
     Other International25.7% 20.6% 20.0% 17.2% 
     Total Company13.8% 12.3% 13.8% 14.3% 
     E-commerce91.1% 89.4% 81.0% 80.3% 
    *Excluding the impacts from changes in gasoline prices and foreign exchange. 

    Costco currently operates 804 warehouses, including 558 in the United States and Puerto Rico, 103 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, March 4, 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, 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

    (dollars in millions, except per share data)
     12 Weeks Ended 24 Weeks Ended
     February 14, 2021 February 16, 2020 February 14, 2021 February 16, 2020
    Net sales                $43,888   $38,256   $86,235   $74,492  
    Membership fees        881   816   1,742   1,620  
    Total revenue        44,769   39,072   87,977   76,112  
    Merchandise costs        39,078   34,056   76,536   66,289  
    Selling, general and administrative        4,342   3,743   8,640   7,475  
    Preopening expenses        9   7   31   21  
    Operating income        1,340   1,266   2,770   2,327  
    Interest expense        (40)  (34)  (79)  (72) 
    Interest income and other, net        19   45   48   80  
    INCOME BEFORE INCOME TAXES        1,319   1,277   2,739   2,335  
    Provision for income taxes        348   330   587   532  
    Net income including noncontrolling interests                971   947   2,152   1,803  
    Net income attributable to noncontrolling interests        (20)  (16)  (35)  (28) 
    NET INCOME ATTRIBUTABLE TO COSTCO        $951   $931   $2,117   $1,775  
    Basic        $2.15   $2.10   $4.78   $4.02  
    Diluted        $2.14   $2.10   $4.76   $4.00  
    Shares used in calculation (000s):       
    Basic        443,134   442,021   443,043   441,920  
    Diluted        444,494   443,727   444,440   443,704  

    (amounts in millions, except par value and share data)
    Subject to Reclassification
       February 14, 2021 August 30, 2020
    Cash and cash equivalents$8,637   $12,277  
    Short-term investments617   1,028  
    Receivables, net1,934   1,550  
    Merchandise inventories13,865   12,242  
    Other current assets1,255   1,023  
    Total current assets26,308   28,120  
    Property and equipment, net22,531   21,807  
    Operating lease right-of-use assets2,887   2,788  
    Other long-term assets3,192   2,841  
    TOTAL ASSETS$54,918   $55,556  
    Accounts payable$14,383   $14,172  
    Accrued salaries and benefits4,132   3,605  
    Accrued member rewards1,541   1,393  
    Deferred membership fees2,048   1,851  
    Current portion of long-term debt95   95  
    Other current liabilities4,365   3,728  
    Total current liabilities26,564   24,844  
    Long-term debt, excluding current portion7,522   7,514  
    Long-term operating lease liabilities2,651   2,558  
    Other long-term liabilities2,052   1,935  
    TOTAL LIABILITIES38,789   36,851  
    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; 442,654,000 and 441,255,000 shares issued and outstanding4   4  
    Additional paid-in capital6,843   6,698  
    Accumulated other comprehensive loss(961)  (1,297) 
    Retained earnings9,766   12,879  
    Total Costco stockholders’ equity15,652   18,284  
    Noncontrolling interests477   421  
    TOTAL EQUITY16,129   18,705  
    TOTAL LIABILITIES AND EQUITY $54,918   $55,556  

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