• Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2023

    Source: Nasdaq GlobeNewswire / 25 May 2023 15:15:00   America/Chicago

    ISSAQUAH, Wash., May 25, 2023 (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 2023, ended May 7, 2023.

    Net sales for the quarter increased 1.9 percent, to $52.60 billion, from $51.61 billion last year. Net sales for the first 36 weeks increased 5.5 percent, to $160.28 billion, from $151.97 billion last year.

    Comparable sales for the third quarter and first 36 weeks of fiscal 2023 were as follows:

     12 Weeks 12 Weeks 36 Weeks 36 Weeks
       Adjusted*   Adjusted*
    U.S.-0.1%  1.8%  4.9%  4.7% 
    Canada-1.0%  7.4%  1.6%  8.4% 
    Other International4.1%  8.4%  1.6%  9.0% 
            
    Total Company0.3%  3.5%  4.0%  5.8% 
            
    E-commerce-10.0%  -9.0%  -7.8%  -6.6% 

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

    Net income for the quarter was $1.30 billion, $2.93 per diluted share, which includes 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. Last year’s third quarter net income was $1.35 billion, $3.04 per diluted share, which included a non-recurring $77 million pretax charge, $0.13 per diluted share, for incremental employee benefits. Net income for the first 36 weeks was $4.13 billion, $9.30 per diluted share, compared to $3.98 billion, $8.94 per diluted share, last year.

    Costco currently operates 853 warehouses, including 587 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 32 in Japan, 29 in the United Kingdom, 18 in Korea, 14 in Taiwan, 14 in Australia, four in Spain, three in China, 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 25, 2023, 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), 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.

    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)

     12 Weeks Ended 36 Weeks Ended
     May 7, 2023 May 8, 2022 May 7, 2023 May 8, 2022
    REVENUE       
    Net sales$52,604  $51,612  $160,280  $151,966 
    Membership fees 1,044   984   3,071   2,897 
    Total revenue 53,648   52,596   163,351   154,863 
    OPERATING EXPENSES       
    Merchandise costs 47,175   46,355   143,367   135,824 
    Selling, general and administrative 4,794   4,450   14,651   13,743 
    Operating income 1,679   1,791   5,333   5,296 
    OTHER INCOME (EXPENSE)       
    Interest expense (36)   (35)   (104)   (110) 
    Interest income and other, net 128   71   295   138 
    INCOME BEFORE INCOME TAXES 1,771   1,827   5,524   5,324 
    Provision for income taxes 469   455   1,392   1,287 
    Net income including noncontrolling interests 1,302   1,372   4,132   4,037 
    Net income attributable to noncontrolling interests    (19)      (61) 
    NET INCOME ATTRIBUTABLE TO COSTCO$1,302  $1,353  $4,132  $3,976 
            
    NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
    Basic$2.94  $3.05  $9.31  $8.96 
    Diluted$2.93  $3.04  $9.30  $8.94 
            
    Shares used in calculation (000s):       
    Basic 443,814   443,700   443,843   443,567 
    Diluted 444,360   444,886   444,455   444,802 
            
            
            

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

    Subject to Reclassification

       May 7, 2023 August 28, 2022
    ASSETS   
    CURRENT ASSETS   
    Cash and cash equivalents$12,493  $10,203 
    Short-term investments 1,215   846 
    Receivables, net 2,502   2,241 
    Merchandise inventories 16,324   17,907 
    Other current assets 1,755   1,499 
    Total current assets 34,289   32,696 
    OTHER ASSETS   
    Property and equipment, net 25,931   24,646 
    Operating lease right-of-use assets 2,806   2,774 
    Other long-term assets 3,726   4,050 
    TOTAL ASSETS$66,752  $64,166 
    LIABILITIES AND EQUITY   
    CURRENT LIABILITIES   
    Accounts payable$16,853  $17,848 
    Accrued salaries and benefits 4,117   4,381 
    Accrued member rewards 2,076   1,911 
    Deferred membership fees 2,436   2,174 
    Current portion of long-term debt    73 
    Other current liabilities 6,226   5,611 
    Total current liabilities 31,708   31,998 
    OTHER LIABILITIES   
    Long-term debt, excluding current portion 6,497   6,484 
    Long-term operating lease liabilities 2,507   2,482 
    Other long-term liabilities 2,467   2,555 
    TOTAL LIABILITIES 43,179   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; 443,222,000 and 442,664,000 shares issued and outstanding 2   2 
    Additional paid-in capital 7,211   6,884 
    Accumulated other comprehensive loss (1,680)   (1,829)
    Retained earnings 18,035   15,585 
    Total Costco stockholders’ equity 23,568   20,642 
    Noncontrolling interests 5   5 
    TOTAL EQUITY 23,573   20,647 
    TOTAL LIABILITIES AND EQUITY$66,752  $64,166 

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