ISSAQUAH, Wash., Oct. 03, 2019 (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 September 1, 2019.
Net sales for the quarter were $46.45 billion, an increase of 7.0 percent from $43.41 billion during the similar period last year. Net sales for the fiscal year were $149.35 billion, an increase of 7.9 percent from $138.43 billion during the similar period last year.
Comparable sales for the fourth quarter and the fiscal year were as follows:
|16 Weeks||16 Weeks||52 Weeks||52 Weeks|
*Excluding the impacts from changes in gasoline prices, foreign exchange, and a previously disclosed accounting change concerning revenue recognition (ASC 606).
Net income for the fourth quarter was $1,097 million, or $2.47 per diluted share, compared to $1,043 million, or $2.36 per diluted share, last year. This year’s fourth quarter was negatively impacted by a $123 million pre-tax reserve to SG&A ($96 million after-tax), or 22 cents per diluted share, related to a product tax assessment.
Net income for the fiscal year was $3.66 billion, or $8.26 per diluted share, compared to $3.13 billion, or $7.09 per diluted share, in the prior year. As previously disclosed and mentioned above, this year's net income was impacted by a net benefit of $30 million or $0.07 per diluted share from primarily non-recurring items. Last year was positively impacted by a first quarter tax benefit of $41 million or $0.09 per diluted share.
Costco currently operates 783 warehouses, including 544 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two in Spain, one in France, one in Iceland, and one in China. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea and Taiwan.
A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, October 3, 2019, 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 remediate material weaknesses in internal control, 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 that they are made, and the Company does not undertake to update them, 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
|16 Weeks Ended||52 Weeks Ended|
|September 1, |
|September 2, |
|September 1, |
|September 2, |
|Selling, general and administrative||4,684||4,263||14,994||13,876|
|OTHER INCOME (EXPENSE)|
|Interest income and other, net||74||51||178||121|
|INCOME BEFORE INCOME TAXES||1,492||1,449||4,765||4,442|
|Provision for income taxes||382||396||1,061||1,263|
|Net income including noncontrolling interests||1,110||1,053||3,704||3,179|
|Net income attributable to noncontrolling interests||(13||)||(10||)||(45||)||(45||)|
|NET INCOME ATTRIBUTABLE TO COSTCO||$||1,097||$||1,043||$||3,659||$||3,134|
|NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:|
|Shares used in calculation (000’s):|
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
Subject to Reclassifications
|September 1, 2019||September 2, 2018|
|Cash and cash equivalents||$||8,384||$||6,055|
|Other current assets||1,111||321|
|Total current assets||23,485||20,289|
|PROPERTY AND EQUIPMENT|
|Buildings and improvements||17,136||16,107|
|Equipment and fixtures||7,801||7,274|
|Construction in progress||1,272||1,140|
|Less accumulated depreciation and amortization||(11,736||)||(11,033||)|
|Net property and equipment||20,890||19,681|
|LIABILITIES AND EQUITY|
|Accrued salaries and benefits||3,176||2,994|
|Accrued member rewards||1,180||1,057|
|Deferred membership fees||1,711||1,624|
|Current portion of long-term debt||1,699||90|
|Other current liabilities||3,792||2,924|
|Total current liabilities||23,237||19,926|
|LONG-TERM DEBT, excluding current portion||5,124||6,487|
|COMMITMENTS AND CONTINGENCIES|
|Preferred stock $0.01 par value; 100,000,000 shares authorized; no shares issued and outstanding||—||—|
|Common stock $0.01 par value; 900,000,000 shares authorized; 439,625,000 and 438,189,000 shares issued and outstanding||4||4|
|Additional paid-in capital||6,417||6,107|
|Accumulated other comprehensive loss||(1,436||)||(1,199||)|
|Total Costco stockholders’ equity||15,243||12,799|
|TOTAL LIABILITIES AND EQUITY||$||45,400||$||40,830|