Costco fiscal Q2 net income attributable to company up to US$1.30B from US$951M last year; net sales up 16.1% to US$50.94B from US$43.89B with e-commerce sales up 12.5%, US comp sales up 15.8%, Canada up 16.0%, Other International up 6.2%

Sample article from our Consumer packaged goods (CPG)

ISSAQUAH, Washington , March 4, 2022 (press release) –

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

 

 

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