Costco Wholesale Corporation Reports First Quarter Fiscal Year 2016 Operating Results
Get Alerts COST Hot Sheet
Overall Analyst Rating:
BUY ( Up)
Dividend Yield: 0.6%
Revenue Growth %: +7.9%
Join SI Premium – FREE
ISSAQUAH, WA -- (Marketwired) -- 12/08/15 -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2016, ended November 22, 2015.
Net sales for the first quarter increased one percent, to $26.63 billion from $26.28 billion during the first quarter last year.
Comparable sales for the first quarter of fiscal 2016 were as follows:
12 Weeks -------- U.S. 2% Canada -9% Other International -5% Total Company -1% ========
Comparable sales for this period excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:
12 Weeks -------- U.S. 6% Canada 9% Other International 7% Total Company 6% ========
Net income for the quarter was $480 million, or $1.09 per diluted share, compared to $496 million, or $1.12 per diluted share, last year.
Costco currently operates 697 warehouses, including 487 in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the United Kingdom, 24 in Japan, 12 in Korea, 11 in Taiwan, eight in Australia and two in Spain. The Company plans to open one additional warehouse before the end of calendar year 2015. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom, Mexico and Korea.
A conference call to discuss these fiscal 2016 first quarter operating results is scheduled for 8:00 a.m. (PT) tomorrow, December 9, 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.
COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited) November 22, November 23, 2015 2014 ------------- ------------- REVENUE Net sales $ 26,627 $ 26,284 Membership fees 593 582 ------------- ------------- Total revenue 27,220 26,866 OPERATING EXPENSES Merchandise costs 23,621 23,385 Selling, general and administrative 2,806 2,696 Preopening expenses 26 15 ------------- ------------- Operating income 767 770 OTHER INCOME (EXPENSE) Interest expense (33) (26) Interest income and other, net 28 35 ------------- ------------- INCOME BEFORE INCOME TAXES 762 779 Provision for income taxes 275 274 ------------- ------------- Net income including noncontrolling interests 487 505 Net income attributable to noncontrolling interests (7) (9) ------------- ------------- NET INCOME ATTRIBUTABLE TO COSTCO $ 480 $ 496 ============= ============= NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic $ 1.10 $ 1.13 ============= ============= Diluted $ 1.09 $ 1.12 ============= ============= Shares used in calculation: (000's) Basic 438,342 438,760 Diluted 441,386 442,210 Cash dividends declared per common share $ 0.40 $ 0.355 COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited) Subject to Reclassifications November 22, August 30, 2015 2015 ------------- ------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 5,054 $ 4,801 Short-term investments 1,229 1,618 Receivables, net 1,359 1,224 Merchandise inventories 10,382 8,908 Deferred income taxes and other current assets 834 748 ------------- ------------- Total current assets 18,858 17,299 ------------- ------------- PROPERTY AND EQUIPMENT Land 5,079 4,961 Buildings and improvements 13,150 12,618 Equipment and fixtures 5,480 5,274 Construction in progress 647 811 ------------- ------------- 24,356 23,664 Less accumulated depreciation and amortization (8,489) (8,263) ------------- ------------- Net property and equipment 15,867 15,401 ------------- ------------- OTHER ASSETS 726 728 ------------- ------------- TOTAL ASSETS $ 35,451 $ 33,428 ============= ============= LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 10,378 $ 9,011 Current portion long-term debt 1,281 1,283 Accrued salaries and benefits 2,436 2,468 Accrued member rewards 812 813 Deferred membership fees 1,350 1,269 Other current liabilities 2,036 1,696 ------------- ------------- Total current liabilities 18,293 16,540 LONG-TERM DEBT, excluding current portion 4,845 4,852 DEFERRED INCOME TAXES AND OTHER LIABILITIES 1,233 1,193 ------------- ------------- Total liabilities 24,371 22,585 ------------- ------------- COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding 0 0 Common stock $.005 par value; 900,000,000 shares authorized; 439,777,000 and 437,952,000 shares issued and outstanding 2 2 Additional paid-in capital 5,247 5,218 Accumulated other comprehensive loss (1,105) (1,121) Retained earnings 6,704 6,518 ------------- ------------- Total Costco stockholders' equity 10,848 10,617 Noncontrolling interests 232 226 ------------- ------------- Total equity 11,080 10,843 ------------- ------------- TOTAL LIABILITIES AND EQUITY $ 35,451 $ 33,428 ============= =============
CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264
Source: Costco
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gilead Sciences (GILD) Misses Q1 EPS by 288c
- USCB Financial Holdings (USCB) Reports Q1, Announces 500K Share Buyback
- South State Corp. (SSB) Tops Q1 EPS by 4c
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
Dividend, Earnings, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!