View all news

Costco Wholesale Corporation Reports First Quarter Fiscal Year 2023 Operating Results

12/08/2022

ISSAQUAH, Wash., Dec. 08, 2022 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2023, ended November 20, 2022.

Net sales for the first quarter increased 8.1 percent, to $53.44 billion from $49.42 billion last year.

Comparable sales for the first quarter fiscal 2023 were as follows:

       
  12 Weeks   12 Weeks
      Adjusted*
U.S. 9.3%   6.5%
Canada 2.4%   8.3%
Other International -3.1%   9.1%
       
Total Company 6.6%   7.1%
       
E-commerce -3.7%   -2.0%
       

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

Net income for the quarter was $1,364 million, $3.07 per diluted share, compared to $1,324 million, $2.98 per diluted share, last year. This year’s results included a charge of $93 million pre-tax, $0.15 per diluted share, primarily related to downsizing our charter shipping activities, and a tax benefit of $53 million, $0.12 per diluted share, related to stock-based compensation. Last year’s results included a write-off of certain information technology assets of $118 million pre-tax, $0.20 per diluted share, and a tax benefit of $91 million, $0.21 per diluted share, related to stock-based compensation.

Costco currently operates 847 warehouses, including 583 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 18 in Korea, 14 in Taiwan, 14 in Australia, four in Spain, two each in France and China, and one each in Iceland, New Zealand and Sweden. 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 8, 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, COVID-19 related factors and challenges, 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

COST-Earn

 
 
CO STCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
 
  12 Weeks Ended
 

November 20, 2022   November 21, 2021
REVENUE      
Net sales $ 53,437     $ 49,417  
Membership fees   1,000       946  
Total revenue   54,437       50,363  
OPERATING EXPENSES      
Merchandise costs   47,769       43,952  
Selling, general and administrative   4,917       4,718  
Operating income   1,751       1,693  
OTHER INCOME (EXPENSE)      
Interest expense   (34 )     (39 )
Interest income and other, net   53       42  
INCOME BEFORE INCOME TAXES   1,770       1,696  
Provision for income taxes   406       351  
Net income including noncontrolling interests   1,364       1,345  
Net income attributable to noncontrolling interests         (21 )
NET INCOME ATTRIBUTABLE TO COSTCO $ 1,364     $ 1,324  
       
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:      
Basic $ 3.07     $ 2.99  
Diluted $ 3.07     $ 2.98  
       
Shares used in calculation (000s):      
Basic   443,837       443,377  
Diluted   444,531       444,604  
       


 
CO STCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
 
Subject to Reclassification
 
  November 20, 2022   August 28, 2022
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents         $ 10,856     $ 10,203  
Short-term investments           817       846  
Receivables, net           2,312       2,241  
Merchandise inventories           18,571       17,907  
Other current assets           1,594       1,499  
Total current assets           34,150       32,696  
OTHER ASSETS      
Property and equipment, net           25,144       24,646  
Operating lease right-of-use assets           2,787       2,774  
Other long-term assets           3,946       4,050  
TOTAL ASSETS          $ 66,027     $ 64,166  
LIABILITIES AND EQUITY      
CURRENT LIABILITIES      
Accounts payable         $ 18,348     $ 17,848  
Accrued salaries and benefits           4,317       4,381  
Accrued member rewards           1,959       1,911  
Deferred membership fees           2,322       2,174  
Current portion of long-term debt           71       73  
Other current liabilities           6,050       5,611  
Total current liabilities           33,067       31,998  
OTHER LIABILITIES      
Long-term debt, excluding current portion           6,472       6,484  
Long-term operating lease liabilities           2,503       2,482  
Other long-term liabilities           2,509       2,555  
TOTAL LIABILITIES            44,551       43,519  
COMMITMENTS AND CONTINGENCIES      
EQUITY      
Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding                  
Common stock $0.005 par value; 900,000,000 shares authorized; 443,841,000 and 442,664,000 shares issued and outstanding           2       2  
Additional paid-in capital           6,982       6,884  
Accumulated other comprehensive loss           (1,925 )     (1,829 )
Retained earnings           16,412       15,585  
Total Costco stockholders’ equity           21,471       20,642  
Noncontrolling interests           5       5  
TOTAL EQUITY            21,476       20,647  
TOTAL LIABILITIES AND EQUITY          $ 66,027     $ 64,166  

 


Source: Costco Wholesale Corporation

Multimedia Files:

View all news