SOURCE: Costco

December 10, 2014 03:01 ET

Costco Wholesale Corporation Reports First Quarter Fiscal Year 2015 Operating Results

ISSAQUAH, WA--(Marketwired - Dec 10, 2014) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the first quarter (twelve weeks) of fiscal 2015, ended November 23, 2014.

Net sales for the quarter increased seven percent, to $26.28 billion from $24.47 billion during the first quarter last year. Comparable sales for the first quarter of fiscal 2015 were as follows:

   
  12 Weeks
   
U.S. 6%
International 1%
   
Total Company 5%
   

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

   
  12 Weeks
   
U.S. 7%
International 7%
   
Total Company 7%
   

Net income for the quarter was $496 million, or $1.12 per diluted share, compared to $425 million, or $0.96 per diluted share, last year.

Costco currently operates 671 warehouses, including 474 in the United States and Puerto Rico, 88 in Canada, 34 in Mexico, 26 in the United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

A conference call to discuss these fiscal 2015 first quarter operating results is scheduled for 8:00 a.m. (PT) today, December 10, 2014, 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, breaches of security or privacy of member or business information, 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 23, 2014       November 24, 2013  
REVENUE                
  Net sales   $ 26,284     $ 24,468  
  Membership fees     582       549  
    Total revenue     26,866       25,017  
OPERATING EXPENSES                
  Merchandise costs     23,385       21,824  
  Selling, general and administrative     2,696       2,501  
  Preopening expenses     15       24  
    Operating income     770       668  
OTHER INCOME (EXPENSE)                
  Interest expense     (26 )     (27 )
  Interest income and other, net     35       18  
INCOME BEFORE INCOME TAXES     779       659  
  Provision for income taxes     274       228  
Net income including noncontrolling interests     505       431  
Net income attributable to noncontrolling interests     (9 )     (6 )
NET INCOME ATTRIBUTABLE TO COSTCO   $ 496     $ 425  
                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                
  Basic   $ 1.13     $ 0.97  
  Diluted   $ 1.12     $ 0.96  
                 
Shares used in calculation (000's)                
  Basic     438,760       437,970  
  Diluted     442,210       442,420  
                 
CASH DIVIDENDS DECLARED PER COMMON SHARE   $ 0.355     $ 0.31  
                 
                 
                 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
 
Subject to Reclassifications
      November 23,
2014
    August 31,
 2014
ASSETS            
Cash and cash equivalents   $ 5,969   $ 5,738
Short-term investments     1,650     1,577
Receivables, net     1,248     1,148
Merchandise inventories     9,644     8,456
Deferred income taxes and other current assets     645     669
  Total current assets     19,156     17,588
Property and equipment, net     14,798     14,830
Other assets     659     606
TOTAL ASSETS   $ 34,613   $ 33,024
             
LIABILITIES AND EQUITY            
             
Accounts payable   $ 9,783   $ 8,491
Accrued salaries and benefits     2,224     2,231
Deferred membership fees     1,305     1,254
Other current liabilities     2,707     2,436
  Total current liabilities     16,019     14,412
Long-term debt, excluding current portion     5,034     5,093
Deferred income taxes and other liabilities     990     1,004
  Total liabilities     22,043     20,509
             
Total Costco stockholders' equity     12,359     12,303
Noncontrolling interests     211     212
  Total equity     12,570     12,515
TOTAL LIABILITIES AND EQUITY   $ 34,613   $ 33,024

Contact Information

  • CONTACTS:
    Costco Wholesale Corporation
    Richard Galanti
    425/313-8203

    Bob Nelson
    425/313-8255

    Jeff Elliott
    425/313-8264