16 Weeks 52 Weeks ---------- ---------- U.S. 4% 4% International 14% 19% Total Company 6% 7% ========== ==========Comparable sales for the 16-week and 52-week periods, excluding the positive impacts from gasoline inflation and the strengthening of foreign currencies (primarily in Canada and Korea), were as follows:
16 Weeks 52 Weeks ---------- ---------- U.S. 3% 2% International 8% 8% Total Company 4% 4% ========== ==========Net income for the fourth quarter of fiscal 2010 was $432 million, or $.97 per diluted share, compared to $374 million, or $.85 per diluted share, during the fourth quarter of fiscal 2009. Net income for fiscal 2010 was $1.30 billion, or $2.92 per diluted share, compared to $1.09 billion, or $2.47 per diluted share, during fiscal year 2009. For the five-week reporting month of September, ended October 3, 2010, the Company reported net sales of $7.51 billion, an increase of ten percent from $6.84 billion during the similar five-week period of the prior year. This year's five-week period includes sales from the Company's Mexico joint venture, as the Company began consolidating its Mexico operations on a prospective basis beginning with its 2011 fiscal year on August 30, 2010, due to the adoption of a new accounting standard. Total sales for the five-week period excluding Mexico sales reflected a seven percent increase over 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. 2% International 14% Total Company 5% =========Comparable sales for the five-week period, excluding the positive impacts from gasoline inflation and foreign exchange (primarily in Canada and Korea), were as follows:
5 Weeks --------- U.S. 2% International 10% Total Company 4% =========Costco currently operates 573 warehouses, including 417 in the United States and Puerto Rico, 79 in Canada, 22 in the United Kingdom, seven in Korea, six in Taiwan, nine in Japan, one in Australia and 32 in Mexico. 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 up to nine additional warehouses in the first four months of fiscal 2011, prior to the end of calendar year 2010. A conference call to discuss these fiscal 2010 fourth quarter and year-end operating results is scheduled for 7:00 a.m. (PT) today, October 6, 2010, 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) (unaudited) 16 Weeks Ended 52 Weeks Ended ---------------------- ---------------------- August 29, August 30, August 29, August 30, 2010 2009 2010 2009 ---------- ---------- ---------- ---------- REVENUE Net sales $ 23,592 $ 21,888 $ 76,255 $ 69,889 Membership fees 533 490 1,691 1,533 ---------- ---------- ---------- ---------- Total revenue 24,125 22,378 77,946 71,422 OPERATING EXPENSES Merchandise costs 21,024 19,512 67,995 62,335 Selling, general and administrative 2,401 2,254 7,840 7,252 Preopening expenses 9 12 26 41 Provision for impaired assets and closing costs, net 3 2 8 17 ---------- ---------- ---------- ---------- Operating income 688 598 2,077 1,777 OTHER INCOME (EXPENSE) Interest expense (34) (33) (111) (108) Interest income and other, net 30 19 88 58 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES 684 584 2,054 1,727 Provision for income taxes 247 206 731 628 ---------- ---------- ---------- ---------- Net income including noncontrolling interests 437 378 1,323 1,099 Net income attributable to noncontrolling interests (5) (4) (20) (13) ---------- ---------- ---------- ---------- NET INCOME ATTRIBUTABLE TO COSTCO $ 432 $ 374 $ 1,303 $ 1,086 ========== ========== ========== ========== NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic $ 0.99 $ 0.86 $ 2.97 $ 2.50 ========== ========== ========== ========== Diluted $ 0.97 $ 0.85 $ 2.92 $ 2.47 ========== ========== ========== ========== Shares used in calculation (000's) Basic 437,071 435,255 438,611 433,988 Diluted 444,289 441,699 445,970 440,454 Dividends per share $ 0.205 $ 0.180 $ 0.770 $ 0.680 COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in millions) (unaudited) Subject to Reclassifications August 29, August 30, 2010 2009 ----------- ----------- ASSETS Cash and cash equivalents $ 3,214 $ 3,157 Short-term investments 1,535 570 Receivables, net 884 834 Merchandise inventories 5,638 5,405 Deferred income taxes and other current assets 437 371 ----------- ----------- Total current assets 11,708 10,337 Property and equipment, net 11,314 10,900 Other assets 793 742 TOTAL ASSETS $ 23,815 $ 21,979 =========== =========== LIABILITIES AND EQUITY Accounts payable $ 5,947 $ 5,450 Short-term borrowings and current portion of long-term debt 26 96 Other current liabilities 4,090 3,735 ----------- ----------- Total current liabilities 10,063 9,281 Long-term debt, excluding current portion 2,141 2,130 Deferred income taxes and other liabilities 681 464 ----------- ----------- Total liabilities 12,885 11,875 ----------- ----------- Total Costco stockholders' equity 10,829 10,024 Noncontrolling interests 101 80 ----------- ----------- Total equity 10,930 10,104 ----------- ----------- TOTAL LIABILITIES AND EQUITY $ 23,815 $ 21,979 =========== ===========
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264