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March 3, 2022 at 4:15 PM EST

Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2022 and February Sales Results

ISSAQUAH, Wash., March 03, 2022 (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 2022, ended February 13, 2022.

Net sales for the quarter increased 16.1 percent, to $50.94 billion, from $43.89 billion last year. Net sales for the first 24 weeks increased 16.4 percent, to $100.35 billion, from $86.23 billion last year.

Comparable sales for the second quarter and first 24 weeks of fiscal 2022 were as follows:

                 
    12 Weeks   12 Weeks   24 Weeks   24 Weeks
        Adjusted*       Adjusted*
  U.S. 15.8%   11.3%   15.4%   10.6%
  Canada 16.0%   12.4%   16.6%   10.3%
  Other International 6.2%   9.0%   9.5%   9.9%
                 
  Total Company 14.4%   11.1%   14.7%   10.5%
                 
  E-commerce 12.5%   12.6%   13.3%   12.9%
                 

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

Net income for the quarter was $1,299 million, $2.92 per diluted share. Last year’s second quarter net income was $951 million, $2.14 per diluted share, which included $246 million pretax, $0.41 per diluted share, in costs incurred primarily from COVID-19 premium wages. Net income for the first 24 weeks was $2.62 billion, or $5.90 per diluted share, compared to $2.12 billion, $4.76 per diluted share, last year.

For the four-week reporting month of February, ended February 27, 2022, the Company reported net sales of $16.29 billion, an increase of 15.9 percent from $14.05 billion last year. Lunar New Year/Chinese New Year occurred on February 1, 11 days earlier this year. The shift negatively impacted February’s Other International and Total Company sales by approximately 4% and 0.5%, respectively. For the twenty-six week period ended February 27, 2022, net sales were $108.39 billion, an increase of 16.3 percent from $93.16 billion last year.

Comparable sales for the February and year-to-date periods ended February 27, 2022, were as follows:

                 
    4 Weeks   4 Weeks   26 Weeks   26 Weeks
        Adjusted*       Adjusted*
  U.S. 17.4%   12.9%   15.5%   10.8%
  Canada 11.7%   8.8%   16.1%   10.1%
  Other International -0.9%   1.3%   9.2%   9.7%
                 
  Total Company 14.0%   10.6%   14.7%   10.5%
                 
  E-commerce 10.2%   10.4%   13.1%   12.8%
                 

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

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, March 3, 2022, 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 and the Ukraine conflict), 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   24 Weeks Ended
  February 13, 2022   February 14, 2021   February 13, 2022   February 14, 2021
REVENUE              
Net sales $ 50,937     $ 43,888     $ 100,354     $ 86,235  
Membership fees   967       881       1,913       1,742  
Total revenue   51,904       44,769       102,267       87,977  
OPERATING EXPENSES              
Merchandise costs   45,517       39,078       89,469       76,536  
Selling, general and administrative   4,575       4,351       9,293       8,671  
Operating income   1,812       1,340       3,505       2,770  
OTHER INCOME (EXPENSE)              
Interest expense   (36 )     (40 )     (75 )     (79 )
Interest income and other, net   25       19       67       48  
INCOME BEFORE INCOME TAXES           1,801       1,319       3,497       2,739  
Provision for income taxes   481       348       832       587  
Net income including noncontrolling interests   1,320       971       2,665       2,152  
Net income attributable to noncontrolling interests   (21 )     (20 )     (42 )     (35 )
NET INCOME ATTRIBUTABLE TO COSTCO         $ 1,299     $ 951     $ 2,623     $ 2,117  
               
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:              
Basic $ 2.93     $ 2.15     $ 5.91     $ 4.78  
Diluted $ 2.92     $ 2.14     $ 5.90     $ 4.76  
               
Shares used in calculation (000s):              
Basic   443,623       443,134       443,500       443,043  
Diluted   444,916       444,494       444,760       444,440  
               

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

Subject to Reclassification

       
  February 13, 2022   August 29, 2021
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 11,819     $ 11,258  
Short-term investments   477       917  
Receivables, net   2,232       1,803  
Merchandise inventories   16,485       14,215  
Other current assets   1,552       1,312  
Total current assets   32,565       29,505  
OTHER ASSETS      
Property and equipment, net   24,052       23,492  
Operating lease right-of-use assets   2,840       2,890  
Other long-term assets   3,621       3,381  
TOTAL ASSETS         $ 63,078     $ 59,268  
LIABILITIES AND EQUITY      
CURRENT LIABILITIES      
Accounts payable $ 17,089     $ 16,278  
Accrued salaries and benefits   4,347       4,090  
Accrued member rewards   1,798       1,671  
Deferred membership fees   2,244       2,042  
Current portion of long-term debt         799  
Other current liabilities   6,067       4,561  
Total current liabilities   31,545       29,441  
OTHER LIABILITIES      
Long-term debt, excluding current portion   6,658       6,692  
Long-term operating lease liabilities   2,588       2,642  
Other long-term liabilities   2,311       2,415  
TOTAL LIABILITIES           43,102       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; 443,279,000 and 441,825,000 shares issued and outstanding   4       4  
Additional paid-in capital   7,186       7,031  
Accumulated other comprehensive loss   (1,246 )     (1,137 )
Retained earnings   13,474       11,666  
Total Costco stockholders’ equity   19,418       17,564  
Noncontrolling interests   558       514  
TOTAL EQUITY           19,976       18,078  
TOTAL LIABILITIES AND EQUITY         $ 63,078     $ 59,268  
               

Costco Wholesale Corporation