SOURCE: Costco

December 08, 2015 21:00 ET

Costco Wholesale Corporation Reports First Quarter Fiscal Year 2016 Operating Results

ISSAQUAH, WA--(Marketwired - Dec 8, 2015) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2016, ended November 22, 2015.

Net sales for the first quarter increased one percent, to $26.63 billion from $26.28 billion during the first quarter last year.

Comparable sales for the first quarter of fiscal 2016 were as follows:

   
  12 Weeks
U.S. 2%
Canada -9%
Other International -5%
   
Total Company -1%
     

Comparable sales for this period excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:

   
  12 Weeks
U.S. 6%
Canada 9%
Other International 7%
   
Total Company 6%
     

Net income for the quarter was $480 million, or $1.09 per diluted share, compared to $496 million, or $1.12 per diluted share, last year. 

Costco currently operates 697 warehouses, including 487 in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the United Kingdom, 24 in Japan, 12 in Korea, 11 in Taiwan, eight in Australia and two in Spain. The Company plans to open one additional warehouse before the end of calendar year 2015. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom, Mexico and Korea.

A conference call to discuss these fiscal 2016 first quarter operating results is scheduled for 8:00 a.m. (PT) tomorrow, December 9, 2015, 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, capital spending, 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. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements, except as required by law.

 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (dollars in millions, except per share data)
(unaudited)
 
             
    November 22,
2015
    November 23,
2014
 
REVENUE                
  Net sales   $ 26,627     $ 26,284  
  Membership fees     593       582  
    Total revenue     27,220       26,866  
OPERATING EXPENSES                
  Merchandise costs     23,621       23,385  
  Selling, general and administrative     2,806       2,696  
  Preopening expenses     26       15  
    Operating income     767       770  
OTHER INCOME (EXPENSE)                
  Interest expense     (33 )     (26 )
  Interest income and other, net     28       35  
INCOME BEFORE INCOME TAXES     762       779  
Provision for income taxes     275       274  
Net income including noncontrolling interests     487       505  
Net income attributable to noncontrolling interests     (7 )     (9 )
NET INCOME ATTRIBUTABLE TO COSTCO   $ 480     $ 496  
                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                
Basic   $ 1.10     $ 1.13  
Diluted   $ 1.09     $ 1.12  
                 
  Shares used in calculation: (000's)                
    Basic     438,342       438,760  
    Diluted     441,386       442,210  
                 
                 
                 
Cash dividends declared per common share   $ 0.40     $ 0.355  
                 
                 
 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 (amounts in millions, except par value and share data)
(unaudited)
 
Subject to Reclassifications
             
    November 22,
2015
    August 30,
 2015
 
ASSETS                
CURRENT ASSETS                
  Cash and cash equivalents   $ 5,054     $ 4,801  
  Short-term investments     1,229       1,618  
  Receivables, net     1,359       1,224  
  Merchandise inventories     10,382       8,908  
  Deferred income taxes and other current assets     834       748  
  Total current assets     18,858       17,299  
PROPERTY AND EQUIPMENT                
  Land     5,079       4,961  
  Buildings and improvements     13,150       12,618  
  Equipment and fixtures     5,480       5,274  
  Construction in progress     647       811  
      24,356       23,664  
  Less accumulated depreciation and amortization     (8,489 )     (8,263 )
  Net property and equipment     15,867       15,401  
OTHER ASSETS     726       728  
    TOTAL ASSETS   $ 35,451     $ 33,428  
LIABILITIES AND EQUITY                
CURRENT LIABILITIES                
  Accounts payable   $ 10,378     $ 9,011  
  Current portion long-term debt     1,281       1,283  
  Accrued salaries and benefits     2,436       2,468  
  Accrued member rewards     812       813  
  Deferred membership fees     1,350       1,269  
  Other current liabilities     2,036       1,696  
    Total current liabilities     18,293       16,540  
LONG-TERM DEBT, excluding current portion     4,845       4,852  
DEFERRED INCOME TAXES AND OTHER LIABILITIES     1,233       1,193  
    Total liabilities     24,371       22,585  
COMMITMENTS AND CONTINGENCIES                
EQUITY                
  Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding     0       0  
  Common stock $.005 par value; 900,000,000 shares authorized; 439,777,000 and 437,952,000 shares issued and outstanding     2       2  
  Additional paid-in capital     5,247       5,218  
  Accumulated other comprehensive loss     (1,105 )     (1,121 )
  Retained earnings     6,704       6,518  
    Total Costco stockholders' equity     10,848       10,617  
  Noncontrolling interests     232       226  
    Total equity     11,080       10,843  
    TOTAL LIABILITIES AND EQUITY   $ 35,451     $ 33,428  
                     
                     

Contact Information

  • CONTACTS:
    Costco Wholesale Corporation


    Richard Galanti
    425/313-8203

    Bob Nelson
    425/313-8255

    Jeff Elliott
    425/313-8264