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May 27, 2021 at 4:15 PM EDT

Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2021

ISSAQUAH, Wash., May 27, 2021 (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 2021, ended May 9, 2021.

Net sales for the quarter increased 21.7 percent, to $44.38 billion, from $36.45 billion last year. Net sales for the first 36 weeks increased 17.7 percent, to $130.61 billion, from $110.94 billion last year.

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

                   
    12 Weeks   12 Weeks   36 Weeks   36 Weeks  
        Adjusted*       Adjusted*  
  U.S. 18.2%   15.2%   14.7%   15.1%  
  Canada 32.3%   16.7%   20.2%   14.7%  
  Other International 22.9%   13.1%   21.1%   16.3%  
                   
  Total Company 20.6%   15.1%   16.3%   15.2%  
                   
  E-commerce 41.2%   38.2%   65.1%   63.6%  

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

Net income for the quarter was $1,220 million, or $2.75 per diluted share, which included $57 million pretax, or $0.09 per diluted share, in COVID-19 related costs, primarily from $2 per hour premium pay. Last year’s third quarter net income was $838 million, or $1.89 per diluted share, inclusive of $283 million pretax, or $0.47 per diluted share of COVID related costs. Net income for the first 36 weeks was $3.34 billion, or $7.51 per diluted share, compared to $2.61 billion, or $5.89 per diluted share, last year.

Costco currently operates 809 warehouses, including 559 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 29 in the United Kingdom, 29 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, May 27, 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   36 Weeks Ended
 
May 9, 2021
 
May 10, 2020
 
May 9, 2021
 
May 10, 2020
REVENUE              
Net sales $ 44,376     $ 36,451     $ 130,611     $ 110,943  
Membership fees 901     815     2,643     2,435  
Total revenue 45,277     37,266     133,254     113,378  
OPERATING EXPENSES              
Merchandise costs 39,415     32,249     115,951     98,538  
Selling, general and administrative 4,189     3,830     12,829     11,305  
Preopening expenses 10     8     41     29  
Operating income 1,663     1,179     4,433     3,506  
OTHER INCOME (EXPENSE)              
Interest expense   (40 )     (37 )     (119 )     (109 )
Interest income and other, net 27     21     75     101  
INCOME BEFORE INCOME TAXES         1,650     1,163     4,389     3,498  
Provision for income taxes 417     311     1,004     843  
Net income including noncontrolling interests 1,233     852     3,385     2,655  
Net income attributable to noncontrolling interests   (13 )     (14 )     (48 )     (42 )
NET INCOME ATTRIBUTABLE TO COSTCO         $ 1,220     $ 838     $ 3,337     $ 2,613  
               
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:              
Basic $ 2.75     $ 1.90     $ 7.53     $ 5.91  
Diluted $ 2.75     $ 1.89     $ 7.51     $ 5.89  
               
Shares used in calculation (000s):              
Basic 443,043     442,322     443,043     442,054  
Diluted 444,127     443,855     444,336     443,754  
               

 

 
COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
 
Subject to Reclassification
      May 9, 2021   August 30, 2020
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 10,226     $ 12,277  
Short-term investments 900     1,028  
Receivables, net 1,595     1,550  
Merchandise inventories 13,975     12,242  
Other current assets 1,220     1,023  
Total current assets 27,916     28,120  
OTHER ASSETS      
Property and equipment, net 23,177     21,807  
Operating lease right-of-use assets 2,875     2,788  
Other long-term assets 3,306     2,841  
TOTAL ASSETS         $ 57,274     $ 55,556  
LIABILITIES AND EQUITY      
CURRENT LIABILITIES      
Accounts payable $ 15,538     $ 14,172  
Accrued salaries and benefits 3,826     3,605  
Accrued member rewards 1,617     1,393  
Deferred membership fees 2,102     1,851  
Current portion of long-term debt 92     95  
Other current liabilities 4,807     3,728  
Total current liabilities 27,982     24,844  
OTHER LIABILITIES      
Long-term debt, excluding current portion 7,495     7,514  
Long-term operating lease liabilities 2,641     2,558  
Other long-term liabilities 2,182     1,935  
TOTAL LIABILITIES         40,300     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; 442,141,000 and 441,255,000 shares issued and outstanding 4     4  
Additional paid-in capital 6,921     6,698  
Accumulated other comprehensive loss (909 )   (1,297 )
Retained earnings 10,466     12,879  
Total Costco stockholders’ equity 16,482     18,284  
Noncontrolling interests 492     421  
TOTAL EQUITY         16,974     18,705  
TOTAL LIABILITIES AND EQUITY         $ 57,274     $ 55,556  
 

Costco Wholesale Corporation