• Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2024

    Source: Nasdaq GlobeNewswire / 30 May 2024 15:15:00   America/Chicago

    ISSAQUAH, Wash., May 30, 2024 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the third quarter (twelve weeks) and the first 36 weeks of fiscal 2024, ended May 12, 2024.

    Net sales for the quarter increased 9.1 percent, to $57.39 billion, from $52.60 billion last year. Net sales for the first 36 weeks increased 7.0 percent, to $171.44 billion, from $160.28 billion last year. Net sales were positively impacted by approximately 0.5 to 1.0 percent for the quarter from the shift of the fiscal calendar, as a result of the fifty-third week last year.

    The following comparable sales data reflect comparable locations year-over-year and comparable retail weeks.

    Comparable sales for the third quarter and first 36 weeks of fiscal 2024 were as follows:

     12 Weeks 12 Weeks 36 Weeks 36 Weeks
       Adjusted*   Adjusted*
    U.S.6.2% 6.0% 4.1% 4.5%
    Canada7.7% 7.4% 7.7% 8.2%
    Other International7.7% 8.5% 9.1% 7.9%
            
    Total Company6.6% 6.5% 5.3% 5.4%
            
    E-commerce20.7% 20.7% 14.9% 14.7%

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

    Net income for the quarter was $1.68 billion, $3.78 per diluted share. Last year’s third quarter net income was $1.30 billion, $2.93 per diluted share, which included a non-recurring charge to merchandise costs of $298 million pretax, $0.50 per diluted share, primarily for the discontinuation of our charter shipping activities. Net income for the first 36 weeks was $5.01 billion, $11.27 per diluted share, compared to $4.13 billion, $9.30 per diluted share, last year.

    Costco currently operates 878 warehouses, including 605 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, seven in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

    A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, May 30, 2024, 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 and wages), energy and certain commodities, geopolitical conditions (including tariffs), 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. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

    CONTACTS:Costco Wholesale Corporation
    David Sherwood, 425/313-8239
    Josh Dahmen, 425/313-8254
    Andrew Yoon, 425/313-6305

    COST-Earn

     
    COSTCO WHOLESALE CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (dollars in millions, except per share data) (unaudited)
     
     12 Weeks Ended 36 Weeks Ended
     May 12, 2024 May 7, 2023 May 12, 2024 May 7, 2023
    REVENUE       
    Net sales$57,392  $52,604  $171,440  $160,280 
    Membership fees 1,123   1,044   3,316   3,071 
    Total revenue 58,515   53,648   174,756   163,351 
    OPERATING EXPENSES       
    Merchandise costs 51,173   47,175   152,770   143,367 
    Selling, general and administrative 5,145   4,794   15,743   14,651 
    Operating income 2,197   1,679   6,243   5,333 
    OTHER INCOME (EXPENSE)       
    Interest expense (41)  (36)  (120)  (104)
    Interest income and other, net 128   128   504   295 
    INCOME BEFORE INCOME TAXES 2,284   1,771   6,627   5,524 
    Provision for income taxes 603   469   1,614   1,392 
    NET INCOME$1,681  $1,302  $5,013  $4,132 
            
    NET INCOME PER COMMON SHARE:       
    Basic$3.79  $2.94  $11.29  $9.31 
    Diluted$3.78  $2.93  $11.27  $9.30 
            
    Shares used in calculation (000s):       
    Basic 443,892   443,814   443,870   443,843 
    Diluted 444,828   444,360   444,662   444,455 
            


    COSTCO WHOLESALE CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (amounts in millions, except par value and share data) (unaudited)
     
    Subject to Reclassification
     
     May 12, 2024 September 3, 2023
    ASSETS   
    CURRENT ASSETS   
    Cash and cash equivalents$10,404  $13,700 
    Short-term investments 1,095   1,534 
    Receivables, net 2,583   2,285 
    Merchandise inventories 17,430   16,651 
    Other current assets 1,776   1,709 
    Total current assets 33,288   35,879 
    OTHER ASSETS   
    Property and equipment, net 28,062   26,684 
    Operating lease right-of-use assets 2,643   2,713 
    Other long-term assets 3,918   3,718 
    TOTAL ASSETS$67,911  $68,994 
    LIABILITIES AND EQUITY   
    CURRENT LIABILITIES   
    Accounts payable$18,844  $17,483 
    Accrued salaries and benefits 4,365   4,278 
    Accrued member rewards 2,339   2,150 
    Deferred membership fees 2,553   2,337 
    Current portion of long-term debt 1,077   1,081 
    Other current liabilities 6,183   6,254 
    Total current liabilities 35,361   33,583 
    OTHER LIABILITIES   
    Long-term debt, excluding current portion 5,834   5,377 
    Long-term operating lease liabilities 2,386   2,426 
    Other long-term liabilities 2,559   2,550 
    TOTAL LIABILITIES 46,140   43,936 
    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; 443,374,000 and 442,793,000 shares issued and outstanding 2   2 
    Additional paid-in capital 7,702   7,340 
    Accumulated other comprehensive loss (1,922)  (1,805)
    Retained earnings 15,989   19,521 
    TOTAL EQUITY 21,771   25,058 
    TOTAL LIABILITIES AND EQUITY$67,911  $68,994 
            


    COSTCO WHOLESALE CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
     (amounts in millions) (unaudited)
     
    Subject to Reclassification
     
     36 Weeks Ended
     May 12, 2024 May 7, 2023
    CASH FLOWS FROM OPERATING ACTIVITIES   
    Net income$5,013  $4,132 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization 1,531   1,389 
    Non-cash lease expense 220   300 
    Stock-based compensation 686   643 
    Impairment of assets and other non-cash operating activities, net (35)  441 
    Changes in working capital 966   438 
    Net cash provided by operating activities 8,381   7,343 
    CASH FLOWS FROM INVESTING ACTIVITIES   
    Purchases of short-term investments (1,007)  (947)
    Maturities and sales of short-term investments 1,441   594 
    Additions to property and equipment (3,133)  (2,767)
    Other investing activities, net (7)  (27)
    Net cash used in investing activities (2,706)  (3,147)
    CASH FLOWS FROM FINANCING ACTIVITIES   
    Repayments of short-term borrowings (637)  (698)
    Proceeds from short-term borrowings 628   667 
    Repayments of long-term debt    (75)
    Proceeds from issuance of long-term debt 498    
    Tax withholdings on stock-based awards (313)  (302)
    Repurchases of common stock (484)  (446)
    Cash dividend payments (8,527)  (799)
    Financing lease payments (112)  (204)
    Other financing activities, net (1)  (93)
    Net cash used in financing activities (8,948)  (1,950)
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (23)  44 
    Net change in cash and cash equivalents (3,296)  2,290 
    CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 13,700   10,203 
    CASH AND CASH EQUIVALENTS END OF YEAR$10,404  $12,493 
        

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