Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2021

Thursday, 27. May 2021 22:15

ISSAQUAH, Wash., May 27, 2021 (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 2021, ended May 9, 2021.

Net sales for the quarter increased 21.7 percent, to $44.38 billion, from $36.45 billion last year. Net sales for the first 36 weeks increased 17.7 percent, to $130.61 billion, from $110.94 billion last year.

Comparable sales for the third quarter fiscal 2021 were as follows:

          
  12 Weeks 12 Weeks 36 Weeks 36 Weeks 
    Adjusted*   Adjusted* 
 U.S.18.2% 15.2% 14.7% 15.1% 
 Canada32.3% 16.7% 20.2% 14.7% 
 Other International22.9% 13.1% 21.1% 16.3% 
          
 Total Company20.6% 15.1% 16.3% 15.2% 
          
 E-commerce41.2% 38.2% 65.1% 63.6% 

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

Net income for the quarter was $1,220 million, or $2.75 per diluted share, which included $57 million pretax, or $0.09 per diluted share, in COVID-19 related costs, primarily from $2 per hour premium pay. Last year’s third quarter net income was $838 million, or $1.89 per diluted share, inclusive of $283 million pretax, or $0.47 per diluted share of COVID related costs. Net income for the first 36 weeks was $3.34 billion, or $7.51 per diluted share, compared to $2.61 billion, or $5.89 per diluted share, last year.

Costco currently operates 809 warehouses, including 559 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 29 in the United Kingdom, 29 in Japan, 16 in Korea, 14 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France, and China. 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 27, 2021, 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, 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), the ability to maintain effective internal control over financial reporting, 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 away from discretionary or higher-priced products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures due to reduced workforces or 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 36 Weeks Ended
 
May 9, 2021
 
May 10, 2020
 
May 9, 2021
 
May 10, 2020
REVENUE       
Net sales$44,376  $36,451  $130,611  $110,943 
Membership fees901  815  2,643  2,435 
Total revenue45,277  37,266  133,254  113,378 
OPERATING EXPENSES       
Merchandise costs39,415  32,249  115,951  98,538 
Selling, general and administrative4,189  3,830  12,829  11,305 
Preopening expenses10  8  41  29 
Operating income1,663  1,179  4,433  3,506 
OTHER INCOME (EXPENSE)       
Interest expense (40)  (37)  (119)  (109)
Interest income and other, net27  21  75  101 
INCOME BEFORE INCOME TAXES        1,650  1,163  4,389  3,498 
Provision for income taxes417  311  1,004  843 
Net income including noncontrolling interests1,233  852  3,385  2,655 
Net income attributable to noncontrolling interests (13)  (14)  (48)  (42)
NET INCOME ATTRIBUTABLE TO COSTCO        $1,220  $838  $3,337  $2,613 
        
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
Basic$2.75  $1.90  $7.53  $5.91 
Diluted$2.75  $1.89  $7.51  $5.89 
        
Shares used in calculation (000s):       
Basic443,043  442,322  443,043  442,054 
Diluted444,127  443,855  444,336  443,754 
        


 
COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
 
Subject to Reclassification
   May 9, 2021 August 30, 2020
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$10,226  $12,277 
Short-term investments900  1,028 
Receivables, net1,595  1,550 
Merchandise inventories13,975  12,242 
Other current assets1,220  1,023 
Total current assets27,916  28,120 
OTHER ASSETS   
Property and equipment, net23,177  21,807 
Operating lease right-of-use assets2,875  2,788 
Other long-term assets3,306  2,841 
TOTAL ASSETS        $57,274  $55,556 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$15,538  $14,172 
Accrued salaries and benefits3,826  3,605 
Accrued member rewards1,617  1,393 
Deferred membership fees2,102  1,851 
Current portion of long-term debt92  95 
Other current liabilities4,807  3,728 
Total current liabilities27,982  24,844 
OTHER LIABILITIES   
Long-term debt, excluding current portion7,495  7,514 
Long-term operating lease liabilities2,641  2,558 
Other long-term liabilities2,182  1,935 
TOTAL LIABILITIES        40,300  36,851 
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; 442,141,000 and 441,255,000 shares issued and outstanding4  4 
Additional paid-in capital6,921  6,698 
Accumulated other comprehensive loss(909) (1,297)
Retained earnings10,466  12,879 
Total Costco stockholders’ equity16,482  18,284 
Noncontrolling interests492  421 
TOTAL EQUITY        16,974  18,705 
TOTAL LIABILITIES AND EQUITY        $57,274  $55,556 

Related Links: Costco Wholesale Corporation
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