Form 8-K COSTCO WHOLESALE CORP For: May 27

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): May 27, 2015

 

 

COSTCO WHOLESALE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Washington		0-20355		91-1223280
(State or other jurisdiction of incorporation)		(Commission File No.)		(I.R.S. Employer Identification No.)

999 Lake Drive

Issaquah, WA 98027

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: 425-313-8100

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02  Results of Operations and Financial Condition

On May 27, 2015, the Company issued a press release containing its operating results for the third quarter (twelve weeks) and first thirty-six weeks of fiscal 2015, ended May 10, 2015. A copy of the press release is included in Item 9.01.

Item 9.01.  Financial Statements and Exhibits

(d) Exhibits. The following exhibit is included in this report:

 

99.1.		Press release dated May 27, 2015.

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized, on May 27, 2015.

 

 

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Exhibit 99.1

 

COSTCO WHOLESALE CORPORATION REPORTS THIRD QUARTER AND YEAR-TO-DATE OPERATING RESULTS FOR FISCAL 2015

ISSAQUAH, Wash., May 27, 2015 – Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) announced today its operating results for the third quarter (twelve weeks) and first thirty-six weeks of fiscal 2015, ended May 10, 2015.

Net sales for the quarter increased one percent, to $25.52 billion, from $25.23 billion last year. Net sales for the first thirty-six weeks increased four percent, to $78.67 billion, from $75.46 billion last year.

Comparable sales for the twelve-week and thirty-six-week periods were as follows:

 

		12 Weeks				36 Weeks
U.S.			1	%			4	%
International			-6	%			-2	%
Total			-1	%			2	%

Comparable sales for these periods, excluding negative impacts from gasoline price deflation and foreign exchange, were as follows:

 

`		12 Weeks				36 Weeks
U.S.			5	%			7	%
International			7	%			7	%
Total			6	%			7	%

Net income for the quarter was $516 million, or $1.17 per diluted share, compared to $473 million, or $1.07 per diluted share, last year. Net income for the thirty-six weeks was $1.61 billion, or $3.64 per diluted share, compared to $1.36 billion, or $3.07 per diluted share, last year. Net income for the thirty-six-week period was positively impacted by a $57 million ($0.13 per diluted share) tax benefit in connection with a second quarter special cash dividend to the extent received by the Company 401(k) plan participants; and was negatively impacted by a $14 million ($0.03 per diluted share) second quarter tax charge relating to an ongoing income tax matter.

Costco currently operates 673 warehouses, including 474 in the United States and Puerto Rico, 89 in Canada, 35 in Mexico, 26 in the United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain. The Company plans to open up to an additional 15 new warehouses (including one relocation to a larger and better-located facility) prior to the end of its fiscal year on August 30, 2015. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

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A conference call to discuss these third quarter operating results is scheduled for 8:00 a.m. (PT) tomorrow, May 28, 2015, 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, 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 (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. Forward-looking statements speak only as of the date they are made, and we do 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, Jeff Elliott, 425/313-8264

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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

 

		12 Weeks Ended								36 Weeks Ended
		May 10, 2015				May 11, 2014				May 10, 2015				May 11, 2014
REVENUE
Net sales		$	25,517			$	25,233			$	78,673			$	75,457
Membership fees			584				561				1,748				1,660
Total revenue			26,101				25,794				80,421				77,117
OPERATING EXPENSES
Merchandise costs			22,687				22,554				69,969				67,421
Selling, general and administrative			2,579				2,487				7,946				7,519
Preopening expenses			14				16				38				48
Operating income			821				737				2,468				2,129
OTHER INCOME (EXPENSE)
Interest expense			(31	)			(25	)			(84	)			(78	)
Interest income and other, net			9				12				64				60
INCOME BEFORE INCOME TAXES			799				724				2,448				2,111
Provision for income taxes			280				245				817				728
Net income including noncontrolling interests			519				479				1,631				1,383
Net income attributable to noncontrolling interests			(3	)			(6	)			(21	)			(22	)
NET INCOME ATTRIBUTABLE TO COSTCO		$	516			$	473			$	1,610			$	1,361
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic		$	1.17			$	1.08			$	3.66			$	3.10
Diluted		$	1.17			$	1.07			$	3.64			$	3.07
Shares used in calculation (000’s)
Basic			440,070				439,446				439,733				439,058
Diluted			443,132				442,720				442,721				442,651
Cash dividends declared per common share		$	0.400			$	0.355			$	6.110			$	0.975

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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

(unaudited)

Subject to Reclassifications

 

		May 10, 2015				August 31, 2014
ASSETS
Cash and cash equivalents		$	5,063			$	5,738
Short-term investments			1,742				1,577
Receivables, net			1,195				1,148
Merchandise inventories			8,869				8,456
Deferred income taxes and other current assets			765				669
Total current assets			17,634				17,588
Property and equipment, net			15,083				14,830
Other assets			774				606
TOTAL ASSETS		$	33,491			$	33,024
LIABILITIES AND EQUITY
Accounts payable		$	8,895			$	8,491
Accrued salaries and benefits			2,160				2,231
Deferred membership fees			1,336				1,254
Other current liabilities			4,345				2,436
Total current liabilities			16,736				14,412
Long-term debt, excluding current portion			4,826				5,093
Deferred income taxes and other liabilities			1,115				1,004
Total liabilities			22,677				20,509
Total Costco stockholders’ equity			10,587				12,303
Noncontrolling interests			227				212
Total equity			10,814				12,515
TOTAL LIABILITIES AND EQUITY		$	33,491			$	33,024

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