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March 4, 2021 at 4:15 PM EST

Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2021 and February Sales Results

ISSAQUAH, Wash., March 04, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2021, ended February 14, 2021.

Net sales for the quarter increased 14.7 percent, to $43.89 billion, from $38.26 billion last year. Net sales for the first 24 weeks increased 15.8 percent, to $86.23 billion, from $74.49 billion last year.

Comparable sales for the second quarter fiscal 2021 were as follows:

 
    12 Weeks   12 Weeks   24 Weeks   24 Weeks  
        Adjusted*       Adjusted*  
  U.S. 11.4%   12.6%   13.0%   14.7%  
  Canada 13.4%   10.6%   14.8%   13.6%  
  Other International 21.5%   17.7%   20.2%   17.7%  
                   
  Total Company 13.0%   12.9%   14.2%   15.0%  
                   
  E-commerce 75.8%   74.8%   80.4%   79.7%  
   
*Excluding the impacts from changes in gasoline prices and foreign exchange.
   

Net income for the quarter was $951 million, or $2.14 per diluted share, which includes $246 million pretax, or $0.41 per diluted share, in costs incurred primarily from COVID-19 premium wages. Last year’s second quarter net income was $931 million, or $2.10 per diluted share. Net income for the first 24 weeks was $2.12 billion, or $4.76 per diluted share, compared to $1.77 billion, or $4.00 per diluted share, last year.

For the four-week reporting month of February, ended February 28, 2021, the Company reported net sales of $14.05 billion, an increase of 15.2 percent from $12.20 billion last year. For the twenty-six week period ended February 28, 2021, net sales were $93.16 billion, an increase of 15.4 percent from $80.76 billion last year.

Comparable sales for the February and year-to-date periods ended February 28, 2021, were as follows:

     
    4 Weeks   4 Weeks   26 Weeks   26 Weeks  
        Adjusted*       Adjusted*  
  U.S. 10.3%   10.3%   12.4%   14.0%  
  Canada 21.6%   15.7%   15.0%   13.5%  
  Other International 25.7%   20.6%   20.0%   17.2%  
                   
  Total Company 13.8%   12.3%   13.8%   14.3%  
                   
  E-commerce 91.1%   89.4%   81.0%   80.3%  
     
*Excluding the impacts from changes in gasoline prices and foreign exchange.  
     

Costco currently operates 804 warehouses, including 558 in the United States and Puerto Rico, 103 in Canada, 39 in Mexico, 29 in the United Kingdom, 27 in Japan, 16 in Korea, 14 in Taiwan, 12 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, March 4, 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, 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 away from discretionary or higher-priced products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures due to reduced workforces or 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)
       
  12 Weeks Ended   24 Weeks Ended
  February 14, 2021   February 16, 2020   February 14, 2021   February 16, 2020
REVENUE              
Net sales                 $ 43,888       $ 38,256       $ 86,235       $ 74,492    
Membership fees         881       816       1,742       1,620    
Total revenue         44,769       39,072       87,977       76,112    
OPERATING EXPENSES              
Merchandise costs         39,078       34,056       76,536       66,289    
Selling, general and administrative         4,342       3,743       8,640       7,475    
Preopening expenses         9       7       31       21    
Operating income         1,340       1,266       2,770       2,327    
OTHER INCOME (EXPENSE)              
Interest expense         (40 )     (34 )     (79 )     (72 )  
Interest income and other, net         19       45       48       80    
INCOME BEFORE INCOME TAXES         1,319       1,277       2,739       2,335    
Provision for income taxes         348       330       587       532    
Net income including noncontrolling interests                 971       947       2,152       1,803    
Net income attributable to noncontrolling interests         (20 )     (16 )     (35 )     (28 )  
NET INCOME ATTRIBUTABLE TO COSTCO         $ 951       $ 931       $ 2,117       $ 1,775    
               
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:              
Basic         $ 2.15       $ 2.10       $ 4.78       $ 4.02    
Diluted         $ 2.14       $ 2.10       $ 4.76       $ 4.00    
               
Shares used in calculation (000s):              
Basic         443,134       442,021       443,043       441,920    
Diluted         444,494       443,727       444,440       443,704    
               

 

 
COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
 
Subject to Reclassification
 
    February 14, 2021   August 30, 2020
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 8,637       $ 12,277    
Short-term investments 617       1,028    
Receivables, net 1,934       1,550    
Merchandise inventories 13,865       12,242    
Other current assets 1,255       1,023    
Total current assets 26,308       28,120    
OTHER ASSETS      
Property and equipment, net 22,531       21,807    
Operating lease right-of-use assets 2,887       2,788    
Other long-term assets 3,192       2,841    
TOTAL ASSETS $ 54,918       $ 55,556    
       
LIABILITIES AND EQUITY      
       
CURRENT LIABILITIES      
Accounts payable $ 14,383       $ 14,172    
Accrued salaries and benefits 4,132       3,605    
Accrued member rewards 1,541       1,393    
Deferred membership fees 2,048       1,851    
Current portion of long-term debt 95       95    
Other current liabilities 4,365       3,728    
Total current liabilities 26,564       24,844    
OTHER LIABILITIES      
Long-term debt, excluding current portion 7,522       7,514    
Long-term operating lease liabilities 2,651       2,558    
Other long-term liabilities 2,052       1,935    
TOTAL LIABILITIES 38,789       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; 442,654,000 and 441,255,000 shares issued and outstanding 4       4    
Additional paid-in capital 6,843       6,698    
Accumulated other comprehensive loss (961 )     (1,297 )  
Retained earnings 9,766       12,879    
Total Costco stockholders’ equity 15,652       18,284    
Noncontrolling interests 477       421    
TOTAL EQUITY 16,129       18,705    
TOTAL LIABILITIES AND EQUITY  $ 54,918       $ 55,556    
 
 

Costco Wholesale Corporation