ISSAQUAH, Washington
,
May 27, 2022
(press release)
–
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 COSTCO WHOLESALE CORPORATION 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 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
Bob Nelson, 425/313-8255
David Sherwood, 425/313-8239
Josh Dahmen, 425/313-8254
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
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