ISSAQUAH, WA, Oct 05, 2011 (MARKETWIRE via COMTEX) --
Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ:
COST) announced today its operating results for the 16 weeks (fourth
quarter) and the 52 weeks (fiscal year) ended August 28, 2011, its
September sales results, and its plans for membership fee increases.
Net sales for the fiscal 2011 fourth quarter were $27.59 billion, an
increase of 17 percent from $23.59 billion in the 16-week fourth
quarter of fiscal 2010 ended August 29, 2010. This year's 16-week
period included sales from the Company's Mexico joint venture;
otherwise the increase would have been 14 percent.
Net sales for the 52-week fiscal year 2011 were $87.05 billion, an
increase of 14 percent from $76.25 billion last year; excluding
Mexico sales, the increase would have been 11 percent.
Comparable sales for the 16-week fiscal fourth quarter and the
52-week fiscal year 2011, including Mexico for last year and this
year, were as follows:
16 Weeks 52 Weeks
-------- --------
U.S. 10% 7%
International 19% 16%
Total Company 12% 10%
======== ========
Inflation in gasoline prices and strengthening foreign currencies had
a positive impact on comparable sales. Excluding these effects,
comparable sales for the sixteen-week and fifty-two-week periods were
as follows:
16 Weeks 52 Weeks
-------- --------
U.S. 6% 5%
International 10% 10%
Total Company 7% 6%
======== ========
Net income for the fourth quarter of fiscal 2011 was $478 million, or
$1.08 per diluted share, compared to $432 million, or $.97 per
diluted share, during the fourth quarter of fiscal 2010. Net income
for fiscal 2011 was $1.46 billion, or $3.30 per diluted share,
compared to $1.30 billion, or $2.92 per diluted share, during fiscal
year 2010. The fourth quarter this year included a $32 million pretax
LIFO charge ($.04 per diluted share); for all of fiscal 2011 the LIFO
charge was $87 million pretax ($.12 per diluted share), compared to
no LIFO charge in fiscal 2010. The consolidation of Mexico had no
impact on net income or earnings per share attributable to Costco.
For the five-week reporting month of September, ended October 2,
2011, the Company reported net sales of $8.61 billion, an increase of
15 percent from $7.51 billion during the similar five-week period
last year. Both this year's and last year's five-week periods include
sales from Mexico.
Comparable sales for the five-week retail-reporting month of
September were as follows:
5 Weeks
-------
U.S. 11%
International 14%
Total Company 12%
=======
Comparable sales for the five-week period, excluding the positive
impacts from gasoline inflation and foreign exchange, were as
follows:
5 Weeks
-------
U.S. 7%
International 10%
Total Company 8%
=======
The Company also announced that effective November 1, 2011, it will
increase annual membership fees by $5 for U.S. Goldstar (individual),
Business, Business add-on and Canada Business members. With this
increase, all U.S. and Canada Goldstar, Business and Business add-on
members will pay an annual fee of $55. Also effective November 1,
U.S. and Canada Executive Membership annual fees will increase from
$100 to $110, and the maximum 2% reward associated with Executive
Membership will increase from $500 to $750. The fee increases will
impact a little over 22 million members, roughly half of which are
Executive Members.
Costco currently operates 592 warehouses, including 429 in the United
States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United
Kingdom, nine in Japan, eight in Taiwan, seven in Korea, and three in
Australia. The Company also operates Costco Online, an electronic
commerce web site, at www.costco.com and at www.costco.ca in Canada.
The Company plans to open up to seven additional warehouses
(including one relocation) in the next three months of fiscal 2012,
prior to the end of calendar year 2011.
A conference call to discuss these fiscal 2011 fourth quarter and
year-end operating results is scheduled for 7:00 a.m. (PT) today,
October 5, 2011, 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. 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, conditions affecting the
acquisition, development, ownership or use of real estate, actions of
vendors, rising costs associated with employees (including health
care costs), energy, and certain commodities, geopolitical conditions
and other risks identified from time to time in the Company's public
statements and reports filed with the Securities and Exchange
Commission.
COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
16 Weeks Ended 52 Weeks Ended
------------------------ ------------------------
August 28, August 29, August 28, August 29,
2011 2010 2011 2010
----------- ----------- ----------- -----------
REVENUE
Net sales $ 27,588 $ 23,592 $ 87,048 $ 76,255
Membership fees 590 533 1,867 1,691
----------- ----------- ----------- -----------
Total revenue 28,178 24,125 88,915 77,946
OPERATING EXPENSES
Merchandise costs 24,680 21,024 77,739 67,995
Selling, general and
administrative 2,712 2,401 8,682 7,840
Preopening expenses 22 9 46 26
Provision for impaired
assets and closing
costs, net. 2 3 9 8
----------- ----------- ----------- -----------
Operating income 762 688 2,439 2,077
OTHER INCOME (EXPENSE)
Interest expense (36) (34) (116) (111)
Interest income and
other, net 46 30 60 88
----------- ----------- ----------- -----------
INCOME BEFORE INCOME
TAXES 772 684 2,383 2,054
Provision for income
taxes 272 247 841 731
----------- ----------- ----------- -----------
Net income including
noncontrolling
interests 500 437 1,542 1,323
Net income attributable
to noncontrolling
interests (22) (5) (80) (20)
----------- ----------- ----------- -----------
NET INCOME ATTRIBUTABLE
TO COSTCO $ 478 $ 432 $ 1,462 $ 1,303
=========== =========== =========== ===========
NET INCOME PER COMMON
SHARE ATTRIBUTABLE TO
COSTCO:
Basic $ 1.09 $ 0.99 $ 3.35 $ 2.97
=========== =========== =========== ===========
Diluted $ 1.08 $ 0.97 $ 3.30 $ 2.92
=========== =========== =========== ===========
Shares used in
calculation (000's)
Basic 436,596 437,071 436,119 438,611
Diluted 443,518 444,289 443,094 445,970
Dividends per share $ 0.240 $ 0.205 $ 0.890 $ 0.770
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
August 28, August 29,
2011 2010
------------ ------------
ASSETS
Cash and cash equivalents $ 4,009 $ 3,214
Short-term investments 1,604 1,535
Receivables, net 965 884
Merchandise inventories 6,638 5,638
Deferred income taxes and other current assets 490 437
------------ ------------
Total current assets 13,706 11,708
Property and equipment, net 12,432 11,314
Other assets 623 793
------------ ------------
TOTAL ASSETS $ 26,761 $ 23,815
============ ============
LIABILITIES AND EQUITY
Short-term borrowings and current portion of long-
term debt $ 900 $ 26
Accounts payable 6,544 5,947
Other current liabilities 4,606 4,090
------------ ------------
Total current liabilities 12,050 10,063
Long-term debt, excluding current portion 1,253 2,141
Deferred income taxes and other liabilities 885 681
------------ ------------
Total liabilities 14,188 12,885
------------ ------------
Total Costco stockholders' equity 12,002 10,829
Noncontrolling interests 571 101
------------ ------------
Total equity 12,573 10,930
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 26,761 $ 23,815
============ ============
CONTACTS:
Costco Wholesale Corporation
Richard Galanti
425/313-8203
Bob Nelson
425/313-8255
Jeff Elliott
425/313-8264
SOURCE: Costco