16 Weeks 52 Weeks
---------- ----------
U.S. -6% -2%
International -3% -8%
Total Company -5% -4%
========== ==========
Comparable sales for the 16-week and 52-week periods, excluding the
negative impacts from gasoline deflation and foreign exchange (primarily in
Canada, the United Kingdom and Korea), were as follows:
16 Weeks 52 Weeks
---------- ----------
U.S. -1% +1%
International +7% +7%
Total Company +1% +3%
========== ==========
Net income for the fourth quarter of fiscal year 2009 was $374 million, or
$.85 per diluted share, compared to $398 million, or $.90 per diluted
share, during the fourth quarter of fiscal 2008. Results benefited from a
LIFO credit of $17 million ($11 million, or $.02 per diluted share,
after-tax). Fiscal year 2008 fourth quarter results included a non-cash
pre-tax LIFO charge of $32 million ($21 million, or $.05 per diluted share,
after-tax), and a $16 million pre-tax charge ($10 million, or $.02 per
diluted share, after-tax) recorded in connection with a litigation
settlement.
Net income for fiscal 2009 was $1.09 billion, or $2.47 per diluted share,
compared to $1.28 billion, or $2.89 per diluted share, during fiscal year
2008. The fiscal 2009 results include: a $32 million pretax LIFO credit,
reversing the prior year's $32 million pretax LIFO charge; a $23 million
pretax mark-to-market charge to the cash surrender value of certain life
insurance contracts; and a $34 million pretax third-quarter charge related
to a litigation settlement concerning our membership renewal policy.
According to Richard Galanti, Chief Financial Officer of Costco, "Fiscal
2009 results, including those of the fourth quarter, were negatively
impacted by these previously reported factors: on-going softness in U.S.
sales, primarily the result of a weak economic environment; higher employee
benefit costs, mainly consisting of higher health care eligibility and
usage; and lower U.S. dollar amounts of international profits as a result
of weaker foreign currencies."
For the five-week reporting month of September, ended October 4, 2009, the
Company reported net sales of $6.85 billion, an increase of three percent
from $6.67 billion during the similar five-week period of the prior year.
Comparable sales for the five-week retail-reporting month of September were
as follows:
5 Weeks
---------
U.S. -1%
International +6%
Total Company +1%
=========
Comparable sales for the five-week period, excluding the negative impacts
from gasoline deflation and foreign exchange (primarily in Canada, the
United Kingdom and Korea), were as follows:
5 Weeks
---------
U.S. +3%
International +9%
Total Company +4%
=========
Costco currently operates 560 warehouses, including 407 in the United
States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, seven in
Korea, six in Taiwan, nine in Japan, 32 in Mexico and one in Australia.
The Company also operates Costco Online, an electronic commerce web site,
at www.costco.com and at www.costco.ca in Canada. The Company plans to open
an additional six to seven new warehouses (including the relocation of one
to two warehouses to larger and better-located facilities), prior to the
end of calendar 2009.
A conference call to discuss these fiscal 2009 fourth quarter and year-end
results is scheduled for 8:00 a.m. (PT) today, October 7, 2009, 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, conditions affecting the acquisition,
development, ownership or use of real estate, actions of vendors, rising
costs associated with employees (including health care costs), 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.
COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
16 Weeks Ended 52 Weeks Ended
---------------------- ----------------------
August 30, August 31, August 30, August 31,
2009 2008 2009 2008
---------- ---------- ---------- ----------
REVENUE
Net sales $ 21,888 $ 22,626 $ 69,889 $ 70,977
Membership fees 490 474 1,533 1,506
---------- ---------- ---------- ----------
Total revenue 22,378 23,100 71,422 72,483
OPERATING EXPENSES
Merchandise costs 19,512 20,298 62,335 63,503
Selling, general and
administrative 2,254 2,187 7,252 6,954
Preopening expenses 12 17 41 57
Provision for impaired
assets and closing
costs, net 2 (6) 17 -
---------- ---------- ---------- ----------
Operating income 598 604 1,777 1,969
OTHER INCOME (EXPENSE)
Interest expense (33) (32) (108) (103)
Interest income and other 15 35 45 133
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 580 607 1,714 1,999
Provision for income
taxes 206 209 628 716
---------- ---------- ---------- ----------
NET INCOME $ 374 $ 398 $ 1,086 $ 1,283
========== ========== ========== ==========
NET INCOME PER COMMON
SHARE:
Basic $ 0.86 $ 0.92 $ 2.50 $ 2.95
========== ========== ========== ==========
Diluted $ 0.85 $ 0.90 $ 2.47 $ 2.89
========== ========== ========== ==========
Shares used in calculation
(000's)
Basic 435,255 434,282 433,988 434,442
Diluted 441,699 443,874 440,454 444,240
Dividends per share $ 0.18 $ 0.16 $ 0.68 $ 0.61
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264