Costco Wholesale Corporation Reports Fourth Quarter And Fisc...| MENAFN.COM

Friday, 07 October 2022 06:54 GMT

Costco Wholesale Corporation Reports Fourth Quarter And Fiscal Year 2022 Operating Results


(MENAFN- GlobeNewsWire - Nasdaq)

ISSAQUAH, Wash., Sept. 22, 2022 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the“Company”) (Nasdaq: COST) today announced its operating results for the 16-week fourth quarter and the 52-week fiscal year, ended August 28, 2022.

Net sales for the quarter increased 15.2 percent, to $70.76 billion, from $61.44 billion last year. Net sales for the fiscal year increased 16.0 percent, to $222.73 billion, from $192.05 billion last year.

Comparable sales for the fourth quarter and the fiscal year were as follows:

16 Weeks 16 Weeks 52 Weeks 52 Weeks
Adjusted* Adjusted*
U.S. 15.8% 9.6% 15.8% 10.4%
Canada 13.4% 13.7% 15.2% 12.1%
Other International 2.9% 11.3% 6.6% 10.2%
Total Company 13.7% 10.4% 14.4% 10.6%
E-commerce 7.1% 8.4% 10.1% 10.4%

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

Net income for the fourth quarter was $1.868 billion, $4.20 per diluted share, compared to $1.670 billion, $3.76 per diluted share last year. Last year's fourth quarter was negatively impacted by a write-off of information technology assets of $84 million pre-tax ($0.14 per diluted share).

Net income for the fiscal year was $5.84 billion, $13.14 per diluted share, compared to $5.01 billion, $11.27 per diluted share, in the prior year.

Costco currently operates 838 warehouses, including 578 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 17 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. 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, September 22, 2022, and is available via a webcast on (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, and 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 for products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures or operational limitations due to 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


CO STCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)

16 Weeks Ended 52 Weeks Ended
August 28,
2022
August 29,
2021
August 28,
2022
August 29,
2021
REVENUE
Net sales $ 70,764 $ 61,441 $ 222,730 $ 192,052
Membership fees 1,327 1,234 4,224 3,877
Total revenue 72,091 62,675 226,954 195,929
OPERATING EXPENSES
Merchandise costs 63,558 54,733 199,382 170,684
Selling, general and administrative 6,036 5,667 19,779 18,537
Operating income 2,497 2,275 7,793 6,708
OTHER INCOME (EXPENSE)
Interest expense (48 ) (52 ) (158 ) (171 )
Interest income and other, net 67 68 205 143
INCOME BEFORE INCOME TAXES 2,516 2,291 7,840 6,680
Provision for income taxes 638 597 1,925 1,601
Net income including noncontrolling interests 1,878 1,694 5,915 5,079
Net income attributable to noncontrolling interests (10 ) (24 ) (71 ) (72 )
NET INCOME ATTRIBUTABLE TO COSTCO $ 1,868 $ 1,670 $ 5,844 $ 5,007
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic $ 4.21 $ 3.77 $ 13.17 $ 11.30
Diluted $ 4.20 $ 3.76 $ 13.14 $ 11.27
Shares used in calculation (000's):
Basic 443,839 443,193 443,651 443,089
Diluted 444,655 444,369 444,757 444,346


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

Subject to Reclassification

August 28,
2022
August 29,
2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 10,203 $ 11,258
Short-term investments 846 917
Receivables, net 2,241 1,803
Merchandise inventories 17,907 14,215
Other current assets 1,499 1,312
Total current assets 32,696 29,505
OTHER ASSETS
Property and equipment, net 24,646 23,492
Operating lease right-of-use assets 2,774 2,890
Other long-term assets 4,050 3,381
TOTAL ASSETS $ 64,166 $ 59,268
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable $ 17,848 $ 16,278
Accrued salaries and benefits 4,381 4,090
Accrued member rewards 1,911 1,671
Deferred membership fees 2,174 2,042
Current portion of long-term debt 73 799
Other current liabilities 5,611 4,561
Total current liabilities 31,998 29,441
OTHER LIABILITIES
Long-term debt, excluding current portion 6,484 6,692
Long-term operating lease liabilities 2,482 2,642
Other long-term liabilities 2,555 2,415
TOTAL LIABILITIES 43,519 41,190
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; 442,664,000 and 441,825,000 shares issued and outstanding 2 4
Additional paid-in capital 6,884 7,031
Accumulated other comprehensive loss (1,829 ) (1,137 )
Retained earnings 15,585 11,666
Total Costco stockholders' equity 20,642 17,564
Noncontrolling interests 5 514
TOTAL EQUITY 20,647 18,078
TOTAL LIABILITIES AND EQUITY $ 64,166 $ 59,268



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