Costco Wholesale Corporation Reports Second Quarter And Year-To-Date Operating Results For Fiscal 2023 And February Sales Results

ISSAQUAH, Wash., March 02, 2023 (GLOBE NEWSWIRE) -- 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 2023, ended February 12, 2023.

Net sales for the quarter increased 6.5 percent, to $54.24 billion, from $50.94 billion last year. Net sales for the first 24 weeks increased 7.3 percent, to $107.68 billion, from $100.35 billion last year.

Comparable sales for the second quarter and first 24 weeks of fiscal 2023 were as follows:

		12 Weeks		12 Weeks		24 Weeks		24 Weeks
				Adjusted*				Adjusted*
	U.S.	5.7%		5.8%		7.5%		6.2%
	Canada	3.5%		9.6%		2.9%		8.9%
	Other International	3.8%		9.5%		0.4%		9.3%
	Total Company	5.2%		6.8%		5.9%		7.0%
	E-commerce	-9.6%		-8.7%		-6.8%		-5.5%

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

Net income for the quarter was $1,466 million, $3.30 per diluted share. Last year’s second quarter net income was $1,299 million, $2.92 per diluted share. Net income for the first 24 weeks was $2.83 billion, or $6.37 per diluted share, compared to $2.62 billion, $5.90 per diluted share, last year.

For the four-week reporting month of February, ended February 26, 2023, the Company reported net sales of $17.06 billion, an increase of 4.7 percent from $16.29 billion last year. Lunar New Year/Chinese New Year occurred on January 22, 10 days earlier this year. The shift positively impacted February’s Other International and Total Company sales by approximately 2% and 0.25%, respectively. For the twenty-six week period ended February 26, 2023, net sales were $116.06 billion, an increase of 7.1 percent from $108.39 billion last year.

Comparable sales for the February and year-to-date periods ended February 26, 2023, were as follows:

		4 Weeks		4 Weeks		26 Weeks		26 Weeks
				Adjusted*				Adjusted*
	U.S.	3.4%		3.5%		7.1%		6.0%
	Canada	1.2%		7.3%		2.7%		8.8%
	Other International	6.5%		11.5%		0.7%		9.4%
	Total Company	3.5%		5.0%		5.6%		6.8%
	E-commerce	-11.2%		-10.3%		-7.0%		-5.7%

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

Costco currently operates 848 warehouses, including 584 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 18 in Korea, 14 in Taiwan, 14 in Australia, four in Spain, two each in France and China, and one each in Iceland, New Zealand and Sweden. 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 2, 2023, and is available via a webcast on investor.costco.com (click on “Events & Presentations”).

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, public-health related factors, 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
	David Sherwood, 425/313-8239
	Josh Dahmen, 425/313-8254

COST-Earn COST-Sales

COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited)

	12 Weeks Ended								24 Weeks Ended
	February 12, 2023				February 13, 2022				February 12, 2023				February 13, 2022
REVENUE
Net sales	$	54,239			$	50,937			$	107,676			$	100,354
Membership fees		1,027				967				2,027				1,913
Total revenue		55,266				51,904				109,703				102,267
OPERATING EXPENSES
Merchandise costs		48,423				45,517				96,192				89,469
Selling, general and administrative		4,940				4,575				9,857				9,293
Operating income		1,903				1,812				3,654				3,505
OTHER INCOME (EXPENSE)
Interest expense		(34	)			(36	)			(68	)			(75	)
Interest income and other, net		114				25				167				67
INCOME BEFORE INCOME TAXES		1,983				1,801				3,753				3,497
Provision for income taxes		517				481				923				832
Net income including noncontrolling interests		1,466				1,320				2,830				2,665
Net income attributable to noncontrolling interests		—				(21	)			—				(42	)
NET INCOME ATTRIBUTABLE TO COSTCO	$	1,466			$	1,299			$	2,830			$	2,623
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic	$	3.30			$	2.93			$	6.37			$	5.91
Diluted	$	3.30			$	2.92			$	6.37			$	5.90
Shares used in calculation (000s):
Basic		443,877				443,623				443,857				443,500
Diluted		444,475				444,916				444,503				444,760

COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited)

Subject to Reclassification

			February 12, 2023				August 28, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents			$	12,970			$	10,203
Short-term investments				735				846
Receivables, net				2,714				2,241
Merchandise inventories				16,081				17,907
Other current assets				1,830				1,499
Total current assets				34,330				32,696
OTHER ASSETS
Property and equipment, net				25,724				24,646
Operating lease right-of-use assets				2,859				2,774
Other long-term assets				3,935				4,050
TOTAL ASSETS			$	66,848			$	64,166
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable			$	16,407			$	17,848
Accrued salaries and benefits				4,483				4,381
Accrued member rewards				2,016				1,911
Deferred membership fees				2,412				2,174
Current portion of long-term debt				76				73
Other current liabilities				7,122				5,611
Total current liabilities				32,516				31,998
OTHER LIABILITIES
Long-term debt, excluding current portion				6,506				6,484
Long-term operating lease liabilities				2,557				2,482
Other long-term liabilities				2,470				2,555
TOTAL LIABILITIES				44,049				43,519
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding				—				—
Common stock $0.005 par value; 900,000,000 shares authorized; 443,550,000 and 442,664,000 shares issued and outstanding				2				2
Additional paid-in capital				7,123				6,884
Accumulated other comprehensive loss				(1,672	)			(1,829	)
Retained earnings				17,341				15,585
Total Costco stockholders’ equity				22,794				20,642
Noncontrolling interests				5				5
TOTAL EQUITY				22,799				20,647
TOTAL LIABILITIES AND EQUITY			$	66,848			$	64,166

Source: Costco Wholesale Corporation

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