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