Form 8-K COSTCO WHOLESALE CORP For: Mar 04

March 4, 2021 5:01 PM EST

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Exhibit 99.1

 

Press Release    LOGO

 

COSTCO WHOLESALE CORPORATION REPORTS SECOND QUARTER AND YEAR-TO-DATE

OPERATING RESULTS FOR FISCAL 2021 AND FEBRUARY SALES RESULTS

ISSAQUAH, Wash., March 4, 2021—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 2021, ended February 14, 2021.

Net sales for the quarter increased 14.7 percent, to $43.89 billion, from $38.26 billion last year. Net sales for the first 24 weeks increased 15.8 percent, to $86.23 billion, from $74.49 billion last year.

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

 

     12 Weeks     12 Weeks     24 Weeks     24 Weeks  
           Adjusted*           Adjusted*  

U.S.

     11.4     12.6     13.0     14.7

Canada

     13.4     10.6     14.8     13.6

Other International

     21.5     17.7     20.2     17.7

Total Company

     13.0     12.9     14.2     15.0
  

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     75.8     74.8     80.4     79.7
  

 

 

   

 

 

   

 

 

   

 

 

 

 

*

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

Net income for the quarter was $951 million, or $2.14 per diluted share, which includes $246 million pretax, or $0.41 per diluted share, in costs incurred primarily from COVID-19 premium wages. Last year’s second quarter net income was $931 million, or $2.10 per diluted share. Net income for the first 24 weeks was $2.12 billion, or $4.76 per diluted share, compared to $1.77 billion, or $4.00 per diluted share, last year.

For the four-week reporting month of February, ended February 28, 2021, the Company reported net sales of $14.05 billion, an increase of 15.2 percent from $12.20 billion last year. For the twenty-six week period ended February 28, 2021, net sales were $93.16 billion, an increase of 15.4 percent from $80.76 billion last year.

Comparable sales for the February and year-to-date periods ended February 28, 2021, were as follows:

 

     4 Weeks     4 Weeks     26 Weeks     26 Weeks  
           Adjusted*           Adjusted*  

U.S.

     10.3     10.3     12.4     14.0

Canada

     21.6     15.7     15.0     13.5

Other International

     25.7     20.6     20.0     17.2

Total Company

     13.8     12.3     13.8     14.3
  

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     91.1     89.4     81.0     80.3
  

 

 

   

 

 

   

 

 

   

 

 

 

 

*

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


Press Release    LOGO

 

 

Costco currently operates 804 warehouses, including 558 in the United States and Puerto Rico, 103 in Canada, 39 in Mexico, 29 in the United Kingdom, 27 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, March 4, 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


Press Release    LOGO

 

 

COSTCO WHOLESALE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

 

     12 Weeks Ended     24 Weeks Ended  
     February 14, 2021     February 16, 2020     February 14, 2021     February 16, 2020  

REVENUE

        

Net sales

   $ 43,888   $ 38,256   $ 86,235   $ 74,492

Membership fees

     881     816     1,742     1,620
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     44,769     39,072     87,977     76,112

OPERATING EXPENSES

        

Merchandise costs

     39,078     34,056     76,536     66,289

Selling, general and administrative

     4,342     3,743     8,640     7,475

Preopening expenses

     9     7     31     21
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     1,340     1,266     2,770     2,327

OTHER INCOME (EXPENSE)

        

Interest expense

     (40     (34     (79     (72

Interest income and other, net

     19     45     48     80
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     1,319     1,277     2,739     2,335

Provision for income taxes

     348     330     587     532
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interests

     971     947     2,152     1,803

Net income attributable to noncontrolling interests

     (20     (16     (35     (28
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO COSTCO

   $ 951   $ 931   $ 2,117   $ 1,775
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:

        

Basic

   $ 2.15   $ 2.10   $ 4.78   $ 4.02
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 2.14   $ 2.10   $ 4.76   $ 4.00
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in calculation (000s):

        

Basic

     443,134     442,021     443,043     441,920

Diluted

     444,494     443,727     444,440     443,704


Press Release    LOGO

 

 

COSTCO WHOLESALE CORPORATION

CONSOLIDATED BALANCE SHEETS

(amounts in millions, except par value and share data)

(unaudited)

Subject to Reclassification

 

     February 14, 2021     August 30, 2020  

ASSETS

    

CURRENT ASSETS

    

Cash and cash equivalents

   $ 8,637   $ 12,277

Short-term investments

     617     1,028

Receivables, net

     1,934     1,550

Merchandise inventories

     13,865     12,242

Other current assets

     1,255     1,023
  

 

 

   

 

 

 

Total current assets

     26,308     28,120

OTHER ASSETS

    

Property and equipment, net

     22,531     21,807

Operating lease right-of-use assets

     2,887     2,788

Other long-term assets

     3,192     2,841
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 54,918   $ 55,556
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

CURRENT LIABILITIES

    

Accounts payable

   $ 14,383   $ 14,172

Accrued salaries and benefits

     4,132     3,605

Accrued member rewards

     1,541     1,393

Deferred membership fees

     2,048     1,851

Current portion of long-term debt

     95     95

Other current liabilities

     4,365     3,728
  

 

 

   

 

 

 

Total current liabilities

     26,564     24,844

OTHER LIABILITIES

    

Long-term debt, excluding current portion

     7,522     7,514

Long-term operating lease liabilities

     2,651     2,558

Other long-term liabilities

     2,052     1,935
  

 

 

   

 

 

 

TOTAL LIABILITIES

     38,789     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; 442,654,000 and 441,255,000 shares issued and outstanding

     4     4

Additional paid-in capital

     6,843     6,698

Accumulated other comprehensive loss

     (961     (1,297

Retained earnings

     9,766     12,879
  

 

 

   

 

 

 

Total Costco stockholders’ equity

     15,652     18,284

Noncontrolling interests

     477     421
  

 

 

   

 

 

 

TOTAL EQUITY

     16,129     18,705
  

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 54,918   $ 55,556
  

 

 

   

 

 

 


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings