News Release

Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal Year 2017, February Sales Results, and Plans for Membership Fee Increase
Net sales for the quarter increased six percent, to
Comparable sales for the twelve-week and twenty-four-week periods were as follows:
12 Weeks | 24 Weeks | |||||
U.S. | 3 | % | 2 | % | ||
Canada | 8 | % | 6 | % | ||
Other International | -2 | % | -1 | % | ||
Total Company | 3 | % | 2 | % |
Comparable sales for these periods excluding the impacts from changes in gasoline prices and foreign exchange were as follows:
12 Weeks | 24 Weeks | |||||
U.S. | 3 | % | 2 | % | ||
Canada | 2 | % | 3 | % | ||
Other International | 3 | % | 3 | % | ||
Total Company | 3 | % | 2 | % |
Net income for the quarter was
For the four-week reporting month of February, ended
Comparable sales for the four-week and twenty-six-week periods ended
4 Weeks | 26 Weeks | |||||
U.S. | 5 | % | 3 | % | ||
Canada | 10 | % | 6 | % | ||
Other International | -2 | % | -1 | % | ||
Total Company | 4 | % | 3 | % |
Comparable sales for these periods excluding the impacts from changes in gasoline prices and foreign exchange were as follows:
4 Weeks | 26 Weeks | |||||
U.S. | 2 | % | 2 | % | ||
Canada | 2 | % | 3 | % | ||
Other International | -1 | % | 3 | % | ||
Total Company | 2 | % | 2 | % |
The Company also announced that, effective
Costco currently operates 728 warehouses, including 508 in
A conference call to discuss these fiscal 2017 second quarter operating results and February sales 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. 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 (including health care costs), energy and certain commodities, geopolitical conditions, and other risks identified from time to time in the Company’s public statements and reports filed with the
COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited) |
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12 Weeks Ended | 24 Weeks Ended | |||||||||||||||
February 12, 2017 |
February 14, 2016 |
February 12, 2017 |
February 14, 2016 |
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REVENUE | ||||||||||||||||
Net sales | $ | 29,130 | $ | 27,567 | $ | 56,599 | $ | 54,194 | ||||||||
Membership fees | 636 | 603 | 1,266 | 1,196 | ||||||||||||
Total revenue | 29,766 | 28,170 | 57,865 | 55,390 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Merchandise costs | 25,927 | 24,469 | 50,215 | 48,090 | ||||||||||||
Selling, general and administrative | 2,980 | 2,835 | 5,920 | 5,641 | ||||||||||||
Preopening expenses | 15 | 10 | 37 | 36 | ||||||||||||
Operating income | 844 | 856 | 1,693 | 1,623 | ||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (31 | ) | (31 | ) | (60 | ) | (64 | ) | ||||||||
Interest income and other, net | (4 | ) | 16 | 22 | 44 | |||||||||||
INCOME BEFORE INCOME TAXES | 809 | 841 | 1,655 | 1,603 | ||||||||||||
Provision for income taxes | 288 | 286 | 579 | 561 | ||||||||||||
Net income including noncontrolling interests | 521 | 555 | 1,076 | 1,042 | ||||||||||||
Net income attributable to noncontrolling interests | (6 | ) | (9 | ) | (16 | ) | (16 | ) | ||||||||
NET INCOME ATTRIBUTABLE TO COSTCO | $ | 515 | $ | 546 | $ | 1,060 | $ | 1,026 | ||||||||
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: |
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Basic | $ | 1.17 | $ | 1.24 | $ | 2.42 | $ | 2.34 | ||||||||
Diluted | $ | 1.17 | $ | 1.24 | $ | 2.41 | $ | 2.32 | ||||||||
Shares used in calculation: (000’s) | ||||||||||||||||
Basic | 439,127 | 439,648 | 438,567 | 438,990 | ||||||||||||
Diluted | 440,657 | 441,559 | 440,568 | 441,457 | ||||||||||||
Cash dividends declared per common share | $ | 0.45 | $ | 0.40 | $ | 0.90 | $ | 0.80 |
COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited) |
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Subject to Reclassifications | |||||||
February 12, 2017 |
August 28, 2016 |
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ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 4,744 | $ | 3,379 | |||
Short-term investments | 1,221 | 1,350 | |||||
Receivables, net | 1,597 | 1,252 | |||||
Merchandise inventories | 9,530 | 8,969 | |||||
Other current assets | 368 | 268 | |||||
Total current assets | 17,460 | 15,218 | |||||
PROPERTY AND EQUIPMENT | |||||||
Land | 5,436 | 5,395 | |||||
Buildings and improvements | 14,395 | 13,994 | |||||
Equipment and fixtures | 6,363 | 6,077 | |||||
Construction in progress | 697 | 701 | |||||
26,891 | 26,167 | ||||||
Less accumulated depreciation and amortization | (9,549 | ) | (9,124 | ) | |||
Net property and equipment | 17,342 | 17,043 | |||||
OTHER ASSETS | 828 | 902 | |||||
TOTAL ASSETS | $ | 35,630 | $ | 33,163 | |||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 8,764 | $ | 7,612 | |||
Current portion of long-term debt | 2,257 | 1,100 | |||||
Accrued salaries and benefits | 2,780 | 2,629 | |||||
Accrued member rewards | 910 | 869 | |||||
Deferred membership fees | 1,458 | 1,362 | |||||
Other current liabilities | 2,691 | 2,003 | |||||
Total current liabilities | 18,860 | 15,575 | |||||
LONG-TERM DEBT, excluding current portion | 2,815 | 4,061 | |||||
OTHER LIABILITIES | 1,243 | 1,195 | |||||
Total liabilities | 22,918 | 20,831 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
EQUITY | |||||||
Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding | 0 | 0 | |||||
Common stock $.005 par value; 900,000,000 shares authorized; 438,941,000 and 437,524,000 shares issued and outstanding | 2 | 2 | |||||
Additional paid-in capital | 5,631 | 5,490 | |||||
Accumulated other comprehensive loss | (1,333 | ) | (1,099 | ) | |||
Retained earnings | 8,140 | 7,686 | |||||
Total Costco stockholders’ equity | 12,440 | 12,079 | |||||
Noncontrolling interests | 272 | 253 | |||||
Total equity | 12,712 | 12,332 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 35,630 | $ | 33,163 |
Costco Wholesale Corporation Richard Galanti , 425/313-8203Bob Nelson , 425/313-8255David Sherwood , 425/313-8239