• Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2023 Operating Results

    Source: Nasdaq GlobeNewswire / 26 Sep 2023 15:15:00   America/Chicago

    ISSAQUAH, Wash., Sept. 26, 2023 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the 17-week fourth quarter and the 53-week fiscal year ended September 3, 2023.

    Net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4 percent from $70.76 billion in the 16-week fourth quarter last year. Net sales for the 53-week fiscal year were $237.71 billion, an increase of 6.7 percent from $222.73 billion in the 52-week fiscal year of 2022.

    Comparable sales were as follows:

            
     17 Weeks 17 Weeks 53 Weeks 53 Weeks
       Adjusted*   Adjusted*
    U.S.0.2% 3.1% 3.3% 4.2%
    Canada1.8% 7.4% 1.7% 8.1%
    Other International5.5% 4.4% 2.8% 7.6%
            
    Total Company1.1% 3.8% 3.0% 5.2%
            
    E-commerce-0.8% -0.6% -5.7% -4.8%

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

    Net income for the 17-week fourth quarter was $2.160 billion, $4.86 per diluted share, compared to $1.868 billion, $4.20 per diluted share, in the 16-week fourth quarter last year.

    Net income for the 53-week fiscal year was $6.292 billion, $14.16 per diluted share, compared to $5.844 billion, $13.14 per diluted share, in the 52-week prior year.

    Costco currently operates 861 warehouses, including 591 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, five 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, September 26, 2023, and will be available via a webcast on investor.costco.com (click “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), 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, 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 GAAP.

    CONTACTS:Costco Wholesale Corporation
     Richard Galanti, 425/313-8203
     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)

     17 Weeks Ended 16 Weeks Ended 53 Weeks Ended 52 Weeks Ended
     September 3, 2023 August 28, 2022 September 3, 2023 August 28, 2022
    REVENUE       
    Net sales$77,430  $70,764  $237,710  $222,730 
    Membership fees 1,509   1,327   4,580   4,224 
    Total revenue 78,939   72,091   242,290   226,954 
    OPERATING EXPENSES       
    Merchandise costs 69,219   63,558   212,586   199,382 
    Selling, general and administrative 6,939   6,036   21,590   19,779 
    Operating income 2,781   2,497   8,114   7,793 
    OTHER INCOME (EXPENSE)       
    Interest expense (56)  (48)  (160)  (158)
    Interest income and other, net 238   67   533   205 
    INCOME BEFORE INCOME TAXES 2,963   2,516   8,487   7,840 
    Provision for income taxes 803   638   2,195   1,925 
    Net income including noncontrolling interests 2,160   1,878   6,292   5,915 
    Net income attributable to noncontrolling interests    (10)     (71)
    NET INCOME ATTRIBUTABLE TO COSTCO$2,160  $1,868  $6,292  $5,844 
            
    NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
    Basic$4.87  $4.21  $14.18  $13.17 
    Diluted$4.86  $4.20  $14.16  $13.14 
            
    Shares used in calculation (000’s):       
    Basic 443,876   443,839   443,854   443,651 
    Diluted 444,445   444,655   444,452   444,757 
            


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

    Subject to Reclassification

       September 3,
    2023
     August 28,
    2022
    ASSETS   
    CURRENT ASSETS   
    Cash and cash equivalents$13,700  $10,203 
    Short-term investments 1,534   846 
    Receivables, net 2,285   2,241 
    Merchandise inventories 16,651   17,907 
    Other current assets 1,709   1,499 
    Total current assets 35,879   32,696 
    OTHER ASSETS   
    Property and equipment, net 26,684   24,646 
    Operating lease right-of-use assets 2,713   2,774 
    Other long-term assets 3,718   4,050 
    TOTAL ASSETS$68,994  $64,166 
    LIABILITIES AND EQUITY   
    CURRENT LIABILITIES   
    Accounts payable$17,483  $17,848 
    Accrued salaries and benefits 4,278   4,381 
    Accrued member rewards 2,150   1,911 
    Deferred membership fees 2,337   2,174 
    Current portion of long-term debt 1,081   73 
    Other current liabilities 6,254   5,611 
    Total current liabilities 33,583   31,998 
    OTHER LIABILITIES   
    Long-term debt, excluding current portion 5,377   6,484 
    Long-term operating lease liabilities 2,426   2,482 
    Other long-term liabilities 2,550   2,555 
    TOTAL LIABILITIES 43,936   43,519 
    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; 442,793,000 and 442,664,000 shares issued and outstanding 2   2 
    Additional paid-in capital 7,340   6,884 
    Accumulated other comprehensive loss (1,805)  (1,829)
    Retained earnings 19,521   15,585 
    Total Costco stockholders’ equity 25,058   20,642 
    Noncontrolling interests    5 
    TOTAL EQUITY 25,058   20,647 
    TOTAL LIABILITIES AND EQUITY$68,994  $64,166 
            

                              

    COSTCO WHOLESALE CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (amounts in millions)
    (unaudited)

    Subject to Reclassification

     53 Weeks Ended 52 Weeks Ended
     September 3,
    2023
     August 28,
    2022
    CASH FLOWS FROM OPERATING ACTIVITIES   
    Net income including noncontrolling interests$6,292  $5,915 
    Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:   
    Depreciation and amortization 2,077   1,900 
    Non-cash lease expense 412   377 
    Stock-based compensation 774   724 
    Other non-cash operating activities, net 495   39 
    Changes in working capital 1,018   (1,563)
    Net cash provided by operating activities 11,068   7,392 
    CASH FLOWS FROM INVESTING ACTIVITIES   
    Purchases of short-term investments (1,622)  (1,121)
    Maturities and sales of short-term investments 937   1,145 
    Additions to property and equipment (4,323)  (3,891)
    Other investing activities, net 36   (48)
    Net cash used in investing activities (4,972)  (3,915)
    CASH FLOWS FROM FINANCING ACTIVITIES   
    Repayments of short-term borrowings (935)  (6)
    Proceeds from short-term borrowings 917   53 
    Repayments of long-term debt (75)  (800)
    Tax withholdings on stock-based awards (303)  (363)
    Repurchases of common stock (676)  (439)
    Cash dividend payments (1,251)  (1,498)
    Financing lease payments (291)  (176)
    Dividend to noncontrolling interest    (208)
    Acquisition of noncontrolling interest    (842)
    Other financing activities, net    (4)
    Net cash used in financing activities (2,614)  (4,283)
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 15   (249)
    Net change in cash and cash equivalents 3,497   (1,055)
    CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 10,203   11,258 
    CASH AND CASH EQUIVALENTS END OF YEAR$13,700  $10,203 


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