SOURCE: Costco

December 11, 2013 03:01 ET

Costco Wholesale Corporation Reports First Quarter Fiscal Year 2014 Operating Results

ISSAQUAH, WA--(Marketwired - Dec 11, 2013) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the first quarter (twelve weeks) of fiscal 2014, ended November 24, 2013.

Net sales for the quarter increased five percent, to $24.47 billion from $23.20 billion during the first quarter last year. Comparable sales for the first quarter of fiscal 2014 were as follows:

     
    12 Weeks
U.S.  
3%
International   1%
     
Total Company   3%
     

Comparable sales for the twelve-week period, excluding negative impacts from gasoline price deflation and foreign exchange, were as follows:

     
    12 Weeks
U.S.  
4%
International   6%
     
Total Company   5%
     

Net income for the quarter was $425 million, or $.96 per diluted share, compared to $416 million, or $.95 per diluted share, last year.

Costco currently operates 648 warehouses, including 461 in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 18 in Japan, 10 in Taiwan, nine in Korea and five in Australia. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

A conference call to discuss these fiscal 2014 first quarter operating results is scheduled for 8:00 a.m. (PT) today, December 11, 2013, 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, amounts expected to be spent on expansion plans, 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.

   
COSTCO WHOLESALE CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME  
(dollars in millions, except per share data)  
(unaudited)  
   
    12 Weeks Ended  
    November 24,
2013
    November 25,
 2012
 
REVENUE                
  Net sales   $ 24,468     $ 23,204  
  Membership fees     549       511  
    Total revenue     25,017       23,715  
OPERATING EXPENSES                
  Merchandise costs     21,824       20,726  
  Selling, general and administrative     2,501       2,332  
  Preopening expenses     24       18  
    Operating income     668       639  
OTHER INCOME (EXPENSE)                
  Interest expense     (27 )     (13 )
  Interest income and other, net     18       20  
INCOME BEFORE INCOME TAXES     659       646  
  Provision for income taxes     228       225  
Net income including noncontrolling interests     431       421  
Net income attributable to noncontrolling interests     (6 )     (5 )
NET INCOME ATTRIBUTABLE TO COSTCO   $ 425     $ 416  
                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                
  Basic   $ 0.97     $ 0.96  
  Diluted   $ 0.96     $ 0.95  
                 
Shares used in calculation (000's)                
  Basic     437,970       433,423  
  Diluted     442,420       438,643  
                 
CASH DIVIDENDS DECLARED PER COMMON SHARE   $ 0.31     $ 0.275  
                 
                 
                 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
 
Subject to Reclassifications
    November 24,
2013
  September 1,
2013
ASSETS        
Cash and cash equivalents   $ 4,699   $ 4,644
Short-term investments     1,740     1,480
Receivables, net     1,145     1,201
Merchandise inventories     9,337     7,894
Deferred income taxes and other current assets     552     621
  Total current assets     17,473     15,840
Property and equipment, net     14,254     13,881
Other assets     592     562
TOTAL ASSETS   $ 32,319   $ 30,283
             
LIABILITIES AND EQUITY            
             
Accounts payable   $ 9,199   $ 7,872
Accrued salaries and benefits     2,070     2,037
Other current liabilities     2,424     2,181
Deferred membership fees     1,240     1,167
  Total current liabilities     14,933     13,257
Long-term debt, excluding current portion     4,987     4,998
Deferred income taxes and other liabilities     990     1,016
  Total liabilities     20,910     19,271
             
Total Costco stockholders' equity     11,221     10,833
Noncontrolling interests     188     179
  Total equity     11,409     11,012
TOTAL LIABILITIES AND EQUITY   $ 32,319   $ 30,283
             
             
             

Contact Information

  • CONTACTS:
    Costco Wholesale Corporation
    Richard Galanti
    425/313-8203
    Bob Nelson
    425/313-8255
    Jeff Elliott
    425/313-8264