SOURCE: Costco

December 07, 2016 16:15 ET

Costco Wholesale Corporation Reports First Quarter Fiscal Year 2017 Operating Results

ISSAQUAH, WA--(Marketwired - Dec 7, 2016) -  Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2017, ended November 20, 2016.

Net sales for the first quarter were $27.47 billion, an increase of three percent, from $26.63 billion during the first quarter last year.

Comparable sales for the first quarter of fiscal 2017 were as follows:

 
U.S.

1%
 
  Canada 4%  
  Other International 0%  
       
  Total Company 1%  

Comparable sales for the quarter excluding the impacts from changes in gasoline prices and foreign exchange were as follows:

 
U.S.

1%
 
  Canada 5%  
  Other International 3%  
       
  Total Company 2%  

Net income for the quarter was $545 million, or $1.24 per diluted share, compared to $480 million, or $1.09 per diluted share, last year. This year's first quarter benefited from a non-recurring $51 million ($.07 per diluted share after tax) legal settlement.

Costco currently operates 723 warehouses, including 506 in the United States and Puerto Rico, 94 in Canada, 36 in Mexico, 28 in the United Kingdom, 25 in Japan, 12 in Korea, 12 in Taiwan, eight in Australia and two in Spain. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea and Taiwan.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, December 7, 2016, 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 20, 2016       November 22, 2015      
REVENUE                    
  Net sales   $ 27,469     $ 26,627      
  Membership fees     630       593      
    Total revenue     28,099       27,220      
OPERATING EXPENSES                    
  Merchandise costs     24,288       23,621      
  Selling, general and administrative     2,940       2,806      
  Preopening expenses     22       26      
    Operating income     849       767      
OTHER INCOME (EXPENSE)                    
  Interest expense     (29 )     (33 )    
  Interest income and other, net     26       28      
INCOME BEFORE INCOME TAXES     846       762      
Provision for income taxes     291       275      
Net income including noncontrolling interests     555       487      
Net income attributable to noncontrolling interests     (10 )     (7 )    
NET INCOME ATTRIBUTABLE TO COSTCO   $ 545     $ 480      
                     
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                    
Basic   $ 1.24     $ 1.10      
Diluted   $ 1.24     $ 1.09      
                     
Shares used in calculation: (000's)                    
  Basic     438,007       438,342      
  Diluted     440,525       441,386      
                     
                     
                     
Cash dividends declared per common share   $ 0.45     $ 0.40      
                     
                     
                     
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 (amounts in millions, except par value and share data)
(unaudited)
 

Subject to Reclassifications

  November 20, 2016
 2015
  August 28,
 2016
ASSETS          
CURRENT ASSETS          
  Cash and cash equivalents $ 4,805   $   3,379  
  Short-term investments   1,311       1,350  
  Receivables, net   1,498       1,252  
  Merchandise inventories   10,721       8,969  
  Other current assets   235       268  
    Total current assets   18,570       15,218  
PROPERTY AND EQUIPMENT          
  Land   5,389       5,395  
  Buildings and improvements   14,060       13,994  
  Equipment and fixtures   6,173       6,077  
  Construction in progress   816       701  
    26,438       26,167  
  Less accumulated depreciation and amortization   (9,282 )     (9,124 )
    Net property and equipment   17,156       17,043  
OTHER ASSETS   806       902  
  TOTAL ASSETS $ 36,532     $ 33,163  
LIABILITIES AND EQUITY          
CURRENT LIABILITIES          
  Accounts payable $ 11,003     $ 7,612  
  Current portion long-term debt   1,159       1,100  
  Accrued salaries and benefits   2,534       2,629  
  Accrued member rewards   862       869  
  Deferred membership fees   1,414       1,362  
  Other current liabilities   2,189       2,003  
    Total current liabilities   19,161       15,575  
LONG-TERM DEBT, excluding current portion   3,933       4,061  
OTHER LIABILITIES   1,207       1,195  
    Total liabilities   24,301       20,831  
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; 439,343,000 and 437,524,000 shares issued and outstanding   2       2  
  Additional paid-in capital   5,528       5,490  
  Accumulated other comprehensive loss   (1,439 )     (1,099 )
  Retained earnings   7,882       7,686  
  Total Costco stockholders' equity   11,973       12,079  
  Noncontrolling interests   258       253  
    Total equity   12,231       12,332  
    TOTAL LIABILITIES AND EQUITY $ 36,532     $ 33,163  

Contact Information

  • CONTACTS:
    Costco Wholesale Corporation
    Bob Nelson
    425/313-8255
    Jeff Elliott
    425/313-8264
    David Sherwood
    425/313-8239