Costco Wholesale Corporation Reports First Quarter Fiscal Year 2022 Operating Results


ISSAQUAH, Wash., Dec. 09, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2022, ended November 21, 2021.

Net sales for the first quarter increased 16.7 percent, to $49.42 billion from $42.35 billion last year.

Comparable sales for the first quarter fiscal 2022 were as follows:

      
  12 Weeks 12 Weeks 
    Adjusted* 
 U.S.14.9% 9.9% 
 Canada17.2% 8.3% 
 Other International13.4% 10.9% 
      
 Total Company15.0% 9.8% 
      
 E-commerce14.3% 13.3% 
      

*Excluding the impacts from changes in gasoline prices and foreign exchange.


Net income for the quarter was $1,324 million, $2.98 per diluted share, compared to $1,166 million, $2.62 per diluted share, last year. This year included a tax benefit of $91 million, $0.21 per diluted share, related to stock-based compensation, and a write-off of certain information technology assets of $118 million pre-tax, $0.20 per diluted share. Last year included tax benefits of $145 million, $0.33 per diluted share, and incremental expenses for COVID-19 premium wages of $212 million pre-tax, $0.35 per diluted share.

Costco currently operates 828 warehouses, including 572 in the United States and Puerto Rico, 105 in Canada, 40 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, December 9, 2021, 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. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. 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, inflation or deflation, 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 (generally including health-care costs), energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, and COVID-19 related factors and challenges, including (among others) the duration of the pandemic, the unknown long-term economic impact, reduced shopping due to illness, travel restrictions or financial hardship, shifts in demand for products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures or operational limitations due to government mandates, or supply-chain disruptions, capacity constraints of third-party logistics suppliers, 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
 Josh Dahmen, 425/313-8254

        

COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
 
 12 Weeks Ended
    
 November 21, 2021 November 22, 2020
REVENUE   
Net sales$49,417  $42,347 
Membership fees946  861 
Total revenue50,363  43,208 
OPERATING EXPENSES   
Merchandise costs43,952  37,458 
Selling, general and administrative4,690  4,298 
Preopening expenses28  22 
Operating income1,693  1,430 
OTHER INCOME (EXPENSE)   
Interest expense(39) (39)
Interest income and other, net42  29 
INCOME BEFORE INCOME TAXES        1,696  1,420 
Provision for income taxes351  239 
Net income including noncontrolling interests1,345  1,181 
Net income attributable to noncontrolling interests(21) (15)
NET INCOME ATTRIBUTABLE TO COSTCO        $1,324  $1,166 
    
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:   
Basic$2.99  $2.63 
Diluted$2.98  $2.62 
    
Shares used in calculation (000s):   
Basic443,377  442,952 
Diluted444,604  444,386 
      


COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
 
Subject to Reclassification       
 November 21, 2021 August 29, 2021
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$12,751  $11,258 
Short-term investments725  917 
Receivables, net1,932  1,803 
Merchandise inventories16,942  14,215 
Other current assets1,500  1,312 
  Total current assets33,850  29,505 
OTHER ASSETS   
Property and equipment, net23,887  23,492 
Operating lease right-of-use assets2,903  2,890 
Other long-term assets3,509  3,381 
  TOTAL ASSETS        $64,149  $59,268 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$19,561  $16,278 
Accrued salaries and benefits3,985  4,090 
Accrued member rewards1,726  1,671 
Deferred membership fees2,192  2,042 
Current portion of long-term debt799  799 
Other current liabilities5,079  4,561 
  Total current liabilities33,342  29,441 
OTHER LIABILITIES   
Long-term debt, excluding current portion6,667  6,692 
Long-term operating lease liabilities2,649  2,642 
Other long-term liabilities2,491  2,415 
  TOTAL LIABILITIES        45,149  41,190 
COMMITMENTS AND CONTINGENCIES   
EQUITY   
Preferred stock $0.01 par value; 100,000,000 shares authorized; no shares
issued and outstanding
   
Common stock $0.01 par value; 900,000,000 shares authorized; 443,434,000
and 441,825,000 shares issued and outstanding
4  4 
Additional paid-in capital7,064  7,031 
Accumulated other comprehensive loss(1,211) (1,137)
Retained earnings12,606  11,666 
  Total Costco stockholders’ equity18,463  17,564 
Noncontrolling interests537  514 
  TOTAL EQUITY        19,000  18,078 
  TOTAL LIABILITIES AND EQUITY        $64,149  $59,268