Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2015 Operating Results
ISSAQUAH, WA -- (Marketwired) -- 09/29/15 -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) today announced its operating results for the 16-week fourth quarter and the 52-week fiscal year ended August 30, 2015.
Net sales for the fourth quarter were $34.99 billion, an increase of one percent from $34.75 billion in fiscal 2014. Net sales for the fiscal year were $113.67 billion, an increase of three percent from $110.21 billion last year.
Comparable sales were as follows:
16 Weeks 52 Weeks
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U.S. 2% 3%
Canada -10% -5%
Other International -7% -3%
Total Company -1% 1%
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Comparable sales for these periods excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:
16 Weeks 52 Weeks
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U.S. 6% 6%
Canada 7% 8%
Other International 6% 6%
Total Company 6% 7%
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Net income for the fourth quarter was $767 million, or $1.73 per diluted share, compared to $697 million, or $1.58 per diluted share, last year.
Net income for this fiscal year was $2.38 billion, or $5.37 per diluted share, compared to $2.06 billion, or $4.65 per diluted share, last year. Net income this year was positively impacted by a $57 million ($.13 per diluted share) tax benefit in connection with a second-quarter special cash dividend received by the Company 401(k) plan participants.
Costco currently operates 686 warehouses, including 480 in the United States and Puerto Rico, 89 in Canada, 36 in Mexico, 27 in the United Kingdom, 23 in Japan, 12 in Korea, 11 in Taiwan, seven in Australia and one in Spain. The Company plans to open up to an additional 12 new warehouses (including one relocation) before the end of calendar year 2015. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom and Mexico.
A conference call to discuss these fiscal 2015 fourth quarter and year-end operating results is scheduled for 8:00 a.m. (PT) tomorrow, September 30, 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
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
16 Weeks 16 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
August 30, August 31, August 30, August 31,
2015 2014 2015 2014
---------- ---------- ---------- ----------
REVENUE
Net sales $ 34,993 $ 34,755 $ 113,666 $ 110,212
Membership fees 785 768 2,533 2,428
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Total revenue 35,778 35,523 116,199 112,640
OPERATING EXPENSES
Merchandise costs 31,096 31,037 101,065 98,458
Selling, general and
administrative 3,499 3,380 11,445 10,899
Preopening expenses 27 15 65 63
---------- ---------- ---------- ----------
Operating income 1,156 1,091 3,624 3,220
OTHER INCOME (EXPENSE)
Interest expense (40) (35) (124) (113)
Interest income and other,
net 40 30 104 90
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 1,156 1,086 3,604 3,197
Provision for income taxes 378 381 1,195 1,109
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Net income including
noncontrolling interests 778 705 2,409 2,088
Net income attributable to
noncontrolling interests (11) (8) (32) (30)
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NET INCOME ATTRIBUTABLE TO
COSTCO $ 767 $ 697 $ 2,377 $ 2,058
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NET INCOME PER COMMON SHARE
ATTRIBUTABLE TO COSTCO:
Basic $ 1.75 $ 1.59 $ 5.41 $ 4.69
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Diluted $ 1.73 $ 1.58 $ 5.37 $ 4.65
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Shares used in calculation:
(000's)
Basic 438,835 437,875 439,455 438,693
Diluted 442,404 441,887 442,716 442,485
Cash dividends declared per
common share $ 0.40 $ 0.355 $ 6.51 $ 1.33
COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
Subject to Reclassifications
August 30, August 31,
2015 2014
---------- ----------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 4,801 $ 5,738
Short-term investments 1,618 1,577
Receivables, net 1,224 1,148
Merchandise inventories 8,908 8,456
Deferred income taxes and other current assets 748 669
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Total current assets 17,299 17,588
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PROPERTY AND EQUIPMENT
Land 4,961 4,716
Buildings and improvements 12,618 12,522
Equipment and fixtures 5,274 4,845
Construction in progress 811 592
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23,664 22,675
Less accumulated depreciation and amortization (8,263) (7,845)
---------- ----------
Net property and equipment 15,401 14,830
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OTHER ASSETS 740 606
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TOTAL ASSETS $ 33,440 $ 33,024
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LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable $ 9,011 $ 8,491
Accrued salaries and benefits 2,468 2,231
Accrued member rewards 813 773
Deferred membership fees 1,269 1,254
Current portion long-term debt 1,283 0
Other current liabilities 1,696 1,663
---------- ----------
Total current liabilities 16,540 14,412
LONG-TERM DEBT, excluding current portion 4,864 5,093
DEFERRED INCOME TAXES AND OTHER LIABILITIES 1,193 1,004
---------- ----------
Total liabilities 22,597 20,509
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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; 437,952,000 and 437,683,000 shares
issued and outstanding 2 2
Additional paid-in capital 5,218 4,919
Accumulated other comprehensive loss (1,121) (76)
Retained earnings 6,518 7,458
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Total Costco stockholders' equity 10,617 12,303
Noncontrolling interests 226 212
---------- ----------
Total equity 10,843 12,515
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TOTAL LIABILITIES AND EQUITY $ 33,440 $ 33,024
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CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264
Source: Costco