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September 23, 2021 at 4:15 PM EDT

Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2021 Operating Results

ISSAQUAH, Wash., Sept. 23, 2021 (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 29, 2021.

Net sales for the quarter increased 17.5 percent, to $61.44 billion from $52.28 billion last year. Net sales for the fiscal year increased 17.7 percent, to $192.05 billion from $163.22 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. 14.9%   10.3%   14.8%   13.6%  
  Canada 19.5%   6.7%   20.0%   12.1%  
  Other International 15.0%   7.3%   19.1%   13.4%  
                   
  Total Company 15.5%   9.4%   16.0%   13.4%  
                   
  E-commerce 11.2%   8.9%   44.4%   42.6%  
                   

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

Net income for the fourth quarter was $1.670 billion, or $3.76 per diluted share, compared to $1.389 billion, or $3.13 last year. This year’s fourth quarter was negatively impacted by a write-off of certain information technology assets of $84 million pre-tax ($0.14 per diluted share). Last year’s fourth quarter was negatively impacted by incremental expense related to COVID-19 premium wages and sanitation costs of $281 million pretax ($0.47 per diluted share) and a $36 million pretax charge ($0.06 per diluted share) related to the prepayment of $1.5 billion of debt, partially offset by an $84 million pretax benefit ($0.15 per diluted share) for the partial reversal of a reserve related to a product tax assessment taken in fiscal year 2019.

Net income for the fiscal year was $5.01 billion, or $11.27 per diluted share, compared to $4.00 billion, or $9.02 per diluted share in the prior year.

Costco currently operates 817 warehouses, including 565 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, three in Spain, and one each in Iceland, France, and China. 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 23, 2021, 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, 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), the ability to maintain effective internal control over financial reporting, 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

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

  16 Weeks Ended   52 Weeks Ended
  August 29,
2021
  August 30,
2020
  August 29,
2021
  August 30,
2020
REVENUE                      
Net sales $ 61,441     $ 52,277     $ 192,052     $ 163,220  
Membership fees 1,234     1,106     3,877     3,541  
Total revenue 62,675     53,383     195,929     166,761  
OPERATING EXPENSES                      
Merchandise costs 54,733     46,401     170,684     144,939  
Selling, general and administrative 5,632     5,027     18,461     16,332  
Preopening expenses 35     26     76     55  
Operating income 2,275     1,929     6,708     5,435  
OTHER INCOME (EXPENSE)                      
Interest expense (52 )   (51 )   (171 )   (160 )
Interest income and other, net 68     (9 )   143     92  
INCOME BEFORE INCOME TAXES         2,291     1,869     6,680     5,367  
Provision for income taxes 597     465     1,601     1,308  
Net income including noncontrolling interests 1,694     1,404     5,079     4,059  
Net income attributable to noncontrolling interests (24 )   (15 )   (72 )   (57 )
NET INCOME ATTRIBUTABLE TO COSTCO         $ 1,670     $ 1,389     $ 5,007     $ 4,002  
               
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                      
Basic $ 3.77     $ 3.14     $ 11.30     $ 9.05  
Diluted $ 3.76     $ 3.13     $ 11.27     $ 9.02  
               
Shares used in calculation (000’s):              
Basic 443,193     442,843     443,089     442,297  
Diluted 444,369     444,231     444,346     443,901  
               

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

Subject to Reclassification

    August 29,
2021
  August 30,
2020
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 11,258     $ 12,277  
Short-term investments 917     1,028  
Receivables, net 1,803     1,550  
Merchandise inventories 14,215     12,242  
Other current assets 1,312     1,023  
Total current assets 29,505     28,120  
OTHER ASSETS      
Property and equipment, net 23,492     21,807  
Operating lease right-of-use assets 2,890     2,788  
Other long-term assets 3,381     2,841  
TOTAL ASSETS         $ 59,268     $ 55,556  
LIABILITIES AND EQUITY      
CURRENT LIABILITIES      
Accounts payable $ 16,278     $ 14,172  
Accrued salaries and benefits 4,090     3,605  
Accrued member rewards 1,671     1,393  
Deferred membership fees 2,042     1,851  
Current portion of long-term debt 799     95  
Other current liabilities 4,561     3,728  
Total current liabilities 29,441     24,844  
OTHER LIABILITIES      
Long-term debt, excluding current portion 6,692     7,514  
Long-term operating lease liabilities 2,642     2,558  
Other long-term liabilities 2,415     1,935  
TOTAL LIABILITIES         41,190     36,851  
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; 441,825,000 and 441,255,000 shares issued and outstanding 4     4  
Additional paid-in capital 7,031     6,698  
Accumulated other comprehensive loss (1,137 )   (1,297 )
Retained earnings 11,666     12,879  
Total Costco stockholders’ equity 17,564     18,284  
Noncontrolling interests 514     421  
TOTAL EQUITY         18,078     18,705  
TOTAL LIABILITIES AND EQUITY         $ 59,268     $ 55,556  
               

Costco Wholesale Corporation