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December 9, 2021 at 4:15 PM EST

Costco Wholesale Corporation Reports First Quarter Fiscal Year 2022 Operating Results

ISSAQUAH, Wash., Dec. 09, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2022, ended November 21, 2021.

Net sales for the first quarter increased 16.7 percent, to $49.42 billion from $42.35 billion last year.

Comparable sales for the first quarter fiscal 2022 were as follows:

           
    12 Weeks   12 Weeks  
        Adjusted*  
  U.S. 14.9%   9.9%  
  Canada 17.2%   8.3%  
  Other International 13.4%   10.9%  
           
  Total Company 15.0%   9.8%  
           
  E-commerce 14.3%   13.3%  
           

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


Net income for the quarter was $1,324 million, $2.98 per diluted share, compared to $1,166 million, $2.62 per diluted share, last year. This year included a tax benefit of $91 million, $0.21 per diluted share, related to stock-based compensation, and a write-off of certain information technology assets of $118 million pre-tax, $0.20 per diluted share. Last year included tax benefits of $145 million, $0.33 per diluted share, and incremental expenses for COVID-19 premium wages of $212 million pre-tax, $0.35 per diluted share.

Costco currently operates 828 warehouses, including 572 in the United States and Puerto Rico, 105 in Canada, 40 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. 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, December 9, 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, regulatory and other impacts related to climate change, and 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)
 
  12 Weeks Ended
       
  November 21, 2021   November 22, 2020
REVENUE      
Net sales $ 49,417     $ 42,347  
Membership fees 946     861  
Total revenue 50,363     43,208  
OPERATING EXPENSES      
Merchandise costs 43,952     37,458  
Selling, general and administrative 4,690     4,298  
Preopening expenses 28     22  
Operating income 1,693     1,430  
OTHER INCOME (EXPENSE)      
Interest expense (39 )   (39 )
Interest income and other, net 42     29  
INCOME BEFORE INCOME TAXES         1,696     1,420  
Provision for income taxes 351     239  
Net income including noncontrolling interests 1,345     1,181  
Net income attributable to noncontrolling interests (21 )   (15 )
NET INCOME ATTRIBUTABLE TO COSTCO         $ 1,324     $ 1,166  
       
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:      
Basic $ 2.99     $ 2.63  
Diluted $ 2.98     $ 2.62  
       
Shares used in calculation (000s):      
Basic 443,377     442,952  
Diluted 444,604     444,386  
           


COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
 
Subject to Reclassification              
  November 21, 2021   August 29, 2021
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 12,751     $ 11,258  
Short-term investments 725     917  
Receivables, net 1,932     1,803  
Merchandise inventories 16,942     14,215  
Other current assets 1,500     1,312  
  Total current assets 33,850     29,505  
OTHER ASSETS      
Property and equipment, net 23,887     23,492  
Operating lease right-of-use assets 2,903     2,890  
Other long-term assets 3,509     3,381  
  TOTAL ASSETS         $ 64,149     $ 59,268  
LIABILITIES AND EQUITY      
CURRENT LIABILITIES      
Accounts payable $ 19,561     $ 16,278  
Accrued salaries and benefits 3,985     4,090  
Accrued member rewards 1,726     1,671  
Deferred membership fees 2,192     2,042  
Current portion of long-term debt 799     799  
Other current liabilities 5,079     4,561  
  Total current liabilities 33,342     29,441  
OTHER LIABILITIES      
Long-term debt, excluding current portion 6,667     6,692  
Long-term operating lease liabilities 2,649     2,642  
Other long-term liabilities 2,491     2,415  
  TOTAL LIABILITIES         45,149     41,190  
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; 443,434,000
and 441,825,000 shares issued and outstanding
4     4  
Additional paid-in capital 7,064     7,031  
Accumulated other comprehensive loss (1,211 )   (1,137 )
Retained earnings 12,606     11,666  
  Total Costco stockholders’ equity 18,463     17,564  
Noncontrolling interests 537     514  
  TOTAL EQUITY         19,000     18,078  
  TOTAL LIABILITIES AND EQUITY         $ 64,149     $ 59,268  


Costco Wholesale Corporation