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May 26, 2022 at 4:15 PM EDT

Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2022

ISSAQUAH, Wash., May 26, 2022 (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 2022, ended May 8, 2022.

Net sales for the quarter increased 16.3 percent, to $51.61 billion, from $44.38 billion last year. Net sales for the first 36 weeks increased 16.4 percent, to $151.97 billion, from $130.61 billion last year.

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

               
  12 Weeks   12 Weeks   36 Weeks   36 Weeks
      Adjusted*       Adjusted*
U.S. 16.6%   10.7%   15.8%   10.7%
Canada 15.2%   12.8%   16.1%   11.2%
Other International 5.7%   9.1%   8.3%   9.6%
               
Total Company 14.9%   10.8%   14.8%   10.6%
               
E-commerce 7.4%   7.9%   11.4%   11.3%
               

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

Net income for the quarter was $1,353 million, $3.04 per diluted share, which included a one-time $77 million pretax charge, $0.13 per diluted share, for incremental benefits awarded under the new employee agreement effective March 14. Last year’s third quarter net income was $1,220 million, $2.75 per diluted share, which included $57 million pretax, $0.09 per diluted share, in COVID-19 related costs, primarily from $2 per hour premium pay. Net income for the first 36 weeks of fiscal 2022 was $3.98 billion, $8.94 per diluted share, compared to $3.34 billion, $7.51 per diluted share, last year.

Costco currently operates 830 warehouses, including 574 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, May 26, 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
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 8, 2022   May 9, 2021   May 8, 2022   May 9, 2021
REVENUE              
Net sales $ 51,612     $ 44,376     $ 151,966     $ 130,611  
Membership fees   984       901       2,897       2,643  
Total revenue   52,596       45,277       154,863       133,254  
OPERATING EXPENSES              
Merchandise costs   46,355       39,415       135,824       115,951  
Selling, general and administrative   4,450       4,199       13,743       12,870  
Operating income   1,791       1,663       5,296       4,433  
OTHER INCOME (EXPENSE)              
Interest expense   (35 )     (40 )     (110 )     (119 )
Interest income and other, net   71       27       138       75  
INCOME BEFORE INCOME TAXES   1,827       1,650       5,324       4,389  
Provision for income taxes   455       417       1,287       1,004  
Net income including noncontrolling interests   1,372       1,233       4,037       3,385  
Net income attributable to noncontrolling interests   (19 )     (13 )     (61 )     (48 )
NET INCOME ATTRIBUTABLE TO COSTCO $ 1,353     $ 1,220     $ 3,976     $ 3,337  
               
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:              
Basic $ 3.05     $ 2.75     $ 8.96     $ 7.53  
Diluted $ 3.04     $ 2.75     $ 8.94     $ 7.51  
               
Shares used in calculation (000s):              
Basic   443,700       443,043       443,567       443,043  
Diluted   444,886       444,127       444,802       444,336  
               

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

Subject to Reclassification

       
  May 8, 2022   August 29, 2021
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 11,193     $ 11,258  
Short-term investments   638       917  
Receivables, net   1,991       1,803  
Merchandise inventories   17,623       14,215  
Other current assets   1,563       1,312  
Total current assets   33,008       29,505  
OTHER ASSETS      
Property and equipment, net   24,143       23,492  
Operating lease right-of-use assets   2,731       2,890  
Other long-term assets   3,970       3,381  
TOTAL ASSETS $ 63,852     $ 59,268  
LIABILITIES AND EQUITY      
CURRENT LIABILITIES      
Accounts payable $ 17,651     $ 16,278  
Accrued salaries and benefits   4,090       4,090  
Accrued member rewards   1,828       1,671  
Deferred membership fees   2,251       2,042  
Current portion of long-term debt   77       799  
Other current liabilities   5,948       4,561  
Total current liabilities   31,845       29,441  
OTHER LIABILITIES      
Long-term debt, excluding current portion   6,507       6,692  
Long-term operating lease liabilities   2,452       2,642  
Other long-term liabilities   2,535       2,415  
TOTAL LIABILITIES   43,339       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; 443,029,000 and 441,825,000 shares issued and outstanding   4       4  
Additional paid-in capital   7,272       7,031  
Accumulated other comprehensive loss   (1,602 )     (1,137 )
Retained earnings   14,294       11,666  
Total Costco stockholders’ equity   19,968       17,564  
Noncontrolling interests   545       514  
TOTAL EQUITY   20,513       18,078  
TOTAL LIABILITIES AND EQUITY $ 63,852     $ 59,268  
               

 


Costco Wholesale Corporation