Source: Costco Wholesale Corporation
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Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2017 Operating Results and September Sales Results

ISSAQUAH, Wash., Oct. 05, 2017 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq:COST) today announced its operating results for the 17-week fourth quarter and the 53-week fiscal year ended September 3, 2017.

Net sales for the 17-week fourth quarter were $41.36 billion, an increase of 15.8 percent from $35.73 billion in the 16-week fourth quarter of fiscal 2016. Net sales for the 53-week fiscal year were $126.17 billion, an increase of 8.7 percent from $116.07 billion in the 52-week fiscal year of 2016.

The Company today also reported net sales of $12.40 billion for the month of September, the five weeks ended October 1, 2017, an increase of 12.1 percent from $11.06 billion during the similar period last year. (The five-week period this year included the last week of the 53-week fiscal year 2017 ended September 3, 2017).

Comparable sales for the 17-week fourth quarter, the 53-week fiscal year, and the 5-week September retail sales month were as follows:

  17 Weeks 53 Weeks Sept. 5 Weeks 

U.S.
 
6.5

%
 
4.4

%
 
9.0

%
 
Canada 4.9% 4.7% 9.4% 
Other International 5.6% 2.1% 8.2% 
        
Total Company 6.1% 4.1% 8.9% 
 
E-commerce 21% 13% 30% 


Comparable sales for these periods excluding the impacts from changes in gasoline prices and foreign exchange were as follows:

  17 Weeks 53 Weeks Sept. 5 Weeks 

U.S.
 
5.8

%
 
3.7

%
 
7.1

%
 
Canada 4.8% 3.8% 1.4% 
Other International 6.0% 4.5% 7.2% 
        
Total Company 5.7% 3.8% 6.2% 


Net income for the 17-week fourth quarter was $919 million, or $2.08 per diluted share, compared to $779 million, or $1.77 per diluted share, in the 16-week fourth quarter last year.  

Net income for the 53-week fiscal year was $2.68 billion, or $6.08 per diluted share, compared to $2.35 billion, or $5.33 per diluted share, in the 52-week prior year. Net income was positively impacted by an $82 million ($0.19 per diluted share) tax benefit in connection with the third-quarter special cash dividend and other net benefits of approximately $51 million ($0.07 per diluted share after tax) for nonrecurring net legal and other matters.

Costco ended its 2017 fiscal year with 741 warehouses in operation, including 514 in the United States and Puerto Rico, 97 in Canada, 37 in Mexico, 28 in the United Kingdom, 26 in Japan, 13 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in France and one in Iceland. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea and Taiwan.

A conference call to discuss these fiscal 2017 fourth quarter and year-end operating results and September sales is scheduled for 2:00 p.m. (PT) today, October 5, 2017, 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 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

 

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

 
   17 Weeks
Ended
  16 Weeks
Ended
  53 Weeks
Ended
  52 Weeks
Ended
   September 3,
2017
  August 28,
2016
  September 3,
2017
  August 28,
2016
REVENUE            
Net sales $41,357  $35,728  $126,172  $116,073 
Membership fees  943   832   2,853   2,646 
Total revenue  42,300   36,560   129,025   118,719 
OPERATING EXPENSES            
Merchandise costs  36,697   31,649   111,882   102,901 
Selling, general and administrative  4,123   3,696   12,950   12,068 
Preopening expenses  30   24   82   78 
Operating income  1,450   1,191   4,111   3,672 
OTHER INCOME (EXPENSE)            
Interest expense  (53)  (39)  (134)  (133)
Interest income and other, net  22   29   62   80 
INCOME BEFORE INCOME TAXES  1,419   1,181   4,039   3,619 
Provision for income taxes  487   396   1,325   1,243 
Net income including noncontrolling interests  932   785   2,714   2,376 
Net income attributable to noncontrolling interests  (13)  (6)  (35)  (26)
NET INCOME ATTRIBUTABLE TO COSTCO $919  $779  $2,679  $2,350 
             
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:            
Basic $2.10  $1.78  $6.11  $5.36 
Diluted $2.08  $1.77  $6.08  $5.33 
             
Shares used in calculation: (000’s)            
Basic  437,987   437,809   438,437   438,585 
Diluted  441,036   440,868   440,937   441,263 
             
             
             
Cash dividends declared per common share $0.50  $0.45  $8.90  $1.70 


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

Subject to Reclassifications
 
 September 3,
 2017
 August 28,
 2016
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$4,546  $3,379 
Short-term investments1,233  1,350 
Receivables, net1,432  1,252 
Merchandise inventories9,834  8,969 
Other current assets272  268 
Total current assets17,317  15,218 
PROPERTY AND EQUIPMENT   
Land5,690  5,395 
Buildings and improvements15,127  13,994 
Equipment and fixtures6,681  6,077 
Construction in progress843  701 
 28,341  26,167 
Less accumulated depreciation and amortization(10,180) (9,124)
Net property and equipment18,161  17,043 
OTHER ASSETS869  902 
TOTAL ASSETS$36,347  $33,163 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$9,608  $7,612 
Current portion of long-term debt86  1,100 
Accrued salaries and benefits2,703  2,629 
Accrued member rewards961  869 
Deferred membership fees1,498  1,362 
Other current liabilities2,639  2,003 
Total current liabilities17,495  15,575 
LONG-TERM DEBT, excluding current portion6,573  4,061 
OTHER LIABILITIES1,200  1,195 
Total liabilities25,268  20,831 
COMMITMENTS AND CONTINGENCIES   
EQUITY   
Preferred stock $.01 par value; 100,000,000 shares authorized; no shares issued
and outstanding
0  0 
Common stock $.01 par value; 900,000,000 shares authorized; 437,204,000 and
437,524,000 shares issued and outstanding
4  2 
Additional paid-in capital5,800  5,490 
Accumulated other comprehensive loss(1,014) (1,099)
Retained earnings5,988  7,686 
Total Costco stockholders’ equity10,778  12,079 
Noncontrolling interests301  253 
Total equity11,079  12,332 
TOTAL LIABILITIES AND EQUITY$36,347  $33,163 

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