News Release

Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2018 Operating Results
Net sales for the 16-week fourth quarter were
Comparable sales for the 16-week fourth quarter, and the 52-week fiscal year were as follows:
16 Weeks | 52 Weeks | ||||
U.S. | 10.8% | 9.4% | |||
Canada | 5.7% | 8.9% | |||
Other International | 6.7% | 10.8% | |||
Total Company | 9.5% | 9.5% | |||
E-commerce | 26.2% | 32.2% | |||
Comparable sales for these periods excluding the impacts from changes in gasoline prices and foreign exchange were as follows:
16 Weeks | 52 Weeks | ||||
U.S. | 7.8% | 7.4% | |||
Canada | 4.6% | 4.1% | |||
Other International | 6.9% | 7.1% | |||
Total Company | 7.2% | 6.8% | |||
E-commerce | 26.3% | 31.3% | |||
Net income for the 16-week fourth quarter was
Net income for the 52-week fiscal year was
While the Company is still completing its assessment of the effectiveness of its internal control over financial reporting as of
Remediation efforts have begun; the material weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. The Company expects that the remediation of this material weakness will be completed prior to the end of fiscal year 2019.
Costco ended its 2018 fiscal year with 762 warehouses in operation, including 527 in
A conference call to discuss these fiscal 2018 fourth quarter and year-end operating results is scheduled for
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,” “may,” “might,” “likely,” “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
CONTACTS:
CONSOLIDATED STATEMENTS OF INCOME
(amounts in millions, except per value and share data)
(unaudited)
16 Weeks Ended | 17 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | ||||||||||||
September 2, 2018 |
September 3, 2017 |
September 2, 2018 |
September 3, 2017 |
||||||||||||
REVENUE | |||||||||||||||
Net sales | $ | 43,414 | $ | 41,357 | $ | 138,434 | $ | 126,172 | |||||||
Membership fees | 997 | 943 | 3,142 | 2,853 | |||||||||||
Total revenue | 44,411 | 42,300 | 141,576 | 129,025 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Merchandise costs | 38,671 | 36,697 | 123,152 | 111,882 | |||||||||||
Selling, general and administrative | 4,263 | 4,123 | 13,876 | 12,950 | |||||||||||
Preopening expenses | 31 | 30 | 68 | 82 | |||||||||||
Operating income | 1,446 | 1,450 | 4,480 | 4,111 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Interest expense | (48 | ) | (53 | ) | (159 | ) | (134 | ) | |||||||
Interest income and other, net | 51 | 22 | 121 | 62 | |||||||||||
INCOME BEFORE INCOME TAXES | 1,449 | 1,419 | 4,442 | 4,039 | |||||||||||
Provision for income taxes | 396 | 487 | 1,263 | 1,325 | |||||||||||
Net income including noncontrolling interests | 1,053 | 932 | 3,179 | 2,714 | |||||||||||
Net income attributable to noncontrolling interests | (10 | ) | (13 | ) | (45 | ) | (35 | ) | |||||||
NET INCOME ATTRIBUTABLE TO COSTCO | $ | 1,043 | $ | 919 | $ | 3,134 | $ | 2,679 | |||||||
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: |
|||||||||||||||
Basic | $ | 2.38 | $ | 2.10 | $ | 7.15 | $ | 6.11 | |||||||
Diluted | $ | 2.36 | $ | 2.08 | $ | 7.09 | $ | 6.08 | |||||||
Shares used in calculation (000’s): | |||||||||||||||
Basic | 438,379 | 437,987 | 438,515 | 438,437 | |||||||||||
Diluted | 442,427 | 441,036 | 441,834 | 440,937 | |||||||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE |
$ | 0.57 | $ | 0.50 | $ | 2.14 | $ | 8.90 | |||||||
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
Subject to Reclassification
September 2, 2018 |
September 3, 2017 |
||||||||
ASSETS | |||||||||
CURRENT ASSETS | |||||||||
Cash and cash equivalents | $ | 6,055 | $ | 4,546 | |||||
Short-term investments | 1,204 | 1,233 | |||||||
Receivables, net | 1,669 | 1,432 | |||||||
Merchandise inventories | 11,040 | 9,834 | |||||||
Other current assets | 321 | 272 | |||||||
Total current assets | 20,289 | 17,317 | |||||||
PROPERTY AND EQUIPMENT | |||||||||
Land | 6,193 | 5,690 | |||||||
Buildings and improvements | 16,107 | 15,127 | |||||||
Equipment and fixtures | 7,274 | 6,681 | |||||||
Construction in progress | 1,140 | 843 | |||||||
30,714 | 28,341 | ||||||||
Less accumulated depreciation and amortization | (11,033 | ) | (10,180 | ) | |||||
Net property and equipment | 19,681 | 18,161 | |||||||
OTHER ASSETS | 860 | 869 | |||||||
TOTAL ASSETS | $ | 40,830 | $ | 36,347 | |||||
LIABILITIES AND EQUITY | |||||||||
CURRENT LIABILITIES | |||||||||
Accounts payable | $ | 11,237 | $ | 9,608 | |||||
Accrued salaries and benefits | 2,994 | 2,703 | |||||||
Accrued member rewards | 1,057 | 961 | |||||||
Deferred membership fees | 1,624 | 1,498 | |||||||
Other current liabilities | 3,014 | 2,725 | |||||||
Total current liabilities | 19,926 | 17,495 | |||||||
LONG-TERM DEBT, excluding current portion | 6,487 | 6,573 | |||||||
OTHER LIABILITIES | 1,314 | 1,200 | |||||||
Total liabilities | 27,727 | 25,268 | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
EQUITY | |||||||||
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; 438,189,000 and 437,204,000 shares issued and outstanding |
4 | 4 | |||||||
Additional paid-in capital | 6,107 | 5,800 | |||||||
Accumulated other comprehensive loss | (1,199 | ) | (1,014 | ) | |||||
Retained earnings | 7,887 | 5,988 | |||||||
Total Costco stockholders’ equity | 12,799 | 10,778 | |||||||
Noncontrolling interests | 304 | 301 | |||||||
Total equity | 13,103 | 11,079 | |||||||
TOTAL LIABILITIES AND EQUITY | $ | 40,830 | $ | 36,347 | |||||