SOURCE: Costco

October 09, 2013 03:01 ET

Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2013 Operating Results and September Sales Results

ISSAQUAH, WA--(Marketwired - Oct 9, 2013) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) today announced its operating results for the 16-week fourth quarter and the 52-week fiscal year 2013 ended September 1, 2013, and its September sales results for the five weeks ended October 6, 2013.

Net sales for the 16-week fourth quarter were $31.77 billion, an increase of one percent from $31.52 billion in the 17-week fourth quarter of fiscal 2012 ended September 2, 2012. Net sales for the 52-week fiscal year 2013 were $102.87 billion, an increase of six percent from $97.06 billion in the prior 53-week fiscal year.

Comparable sales were as follows:

         
    16 Weeks   52 Weeks
U.S.   5%   6%
International   4%   6%
         
Total Company   5%   6%
         

For the 16-week period, changes in foreign exchange rates had a negative impact on comparable sales. Excluding this impact, comparable sales were as follows:

         
    16 Weeks   52 Weeks
U.S.   5%   6%
International   7%   6%
         
Total Company   5%   6%
         

Net income for the fourth quarter of fiscal 2013 was $617 million, or $1.40 per diluted share, compared to $609 million, or $1.39 per diluted share, during the fourth quarter of fiscal 2012.

Net income for fiscal 2013 was $2.04 billion, or $4.63 per diluted share, compared to $1.71 billion, or $3.89 per diluted share, in fiscal year 2012. Net income for fiscal 2013 was positively impacted by a second quarter $62 million ($.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid in December 2012 to the Company 401(k) plan participants.

For the five-week reporting month of September, ended October 6, 2013, the Company reported net sales of $9.86 billion, an increase of six percent from $9.33 billion during the similar five-week period last year.

Comparable sales for the five-week period ended October 6, 2013, were as follows:

     
    5 Weeks
U.S.   4%
International   0%
     
Total Company   3%
     

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

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

Costco currently operates 638 warehouses, including 454 in the United States and Puerto Rico, 85 in Canada, 34 in Mexico, 25 in the United Kingdom, 18 in Japan, 10 in Taiwan, nine in Korea, and three in Australia. The Company plans to open up to an additional 11 new warehouses before the end of calendar year 2013. Costco also operates electronic commerce web sites, at www.costco.com (U.S.), www.costco.ca (Canada), and www.costco.co.uk (United Kingdom).

A conference call to discuss these fiscal 2013 fourth quarter and year-end operating results and September sales is scheduled for 7:00 a.m. (PT) today, October 9, 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  
CONSOLIDATED STATEMENTS OF INCOME  
(dollars in millions, except per share data)  
(unaudited)  
   
    16 Weeks Ended     17 Weeks Ended     52 Weeks Ended     53 Weeks Ended  
    September 1, 2013     September 2, 2012     September 1, 2013     September 2, 2012  
REVENUE                                
  Net sales   $ 31,771     $ 31,524     $ 102,870     $ 97,062  
  Membership fees     716       694       2,286       2,075  
    Total revenue     32,487       32,218       105,156       99,137  
OPERATING EXPENSES                                
  Merchandise costs     28,418       28,210       91,948       86,823  
  Selling, general and administrative     3,098       3,044       10,104       9,518  
  Preopening expenses     17       15       51       37  
    Operating income     954       949       3,053       2,759  
OTHER INCOME (EXPENSE)                                
  Interest expense     (36 )     (22 )     (99 )     (95 )
  Interest income and other, net     36       38       97       103  
INCOME BEFORE INCOME TAXES     954       965       3,051       2,767  
  Provision for income taxes     332       343       990       1,000  
Net income including noncontrolling interests     622       622       2,061       1,767  
Net income attributable to noncontrolling interests     (5 )     (13 )     (22 )     (58 )
NET INCOME ATTRIBUTABLE TO COSTCO   $ 617     $ 609     $ 2,039     $ 1,709  
                                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                                
  Basic   $ 1.41     $ 1.41     $ 4.68     $ 3.94  
  Diluted   $ 1.40     $ 1.39     $ 4.63     $ 3.89  
                                 
Shares used in calculation (000's)                                
  Basic     436,752       432,437       435,741       433,620  
  Diluted     441,907       438,344       440,512       439,373  
                                 
                                 
                                 
Cash dividends declared per common share   $ 0.31     $ 0.55     $ 8.17     $ 1.03  
                                 
 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
 
Subject to Reclassifications
    September 1, 2013   September 2, 2012
ASSETS            
Cash and cash equivalents   $ 4,644   $ 3,528
Short-term investments     1,480     1,326
Receivables, net     1,201     1,026
Merchandise inventories     7,894     7,096
Deferred income taxes and other current assets     621     550
  Total current assets     15,840     13,526
Property and equipment, net     13,881     12,961
Other assets     562     653
TOTAL ASSETS   $ 30,283   $ 27,140
             
LIABILITIES AND EQUITY            
             
Accounts payable   $ 7,872     7,303
Accrued salaries and benefits     2,037     1,832
Other current liabilities     2,181     2,024
Deferred membership fees     1,167     1,101
  Total current liabilities     13,257     12,260
Long-term debt, excluding current portion     4,998     1,381
Deferred income taxes and other liabilities     1,016     981
  Total liabilities     19,271     14,622
             
Total Costco stockholders' equity     10,833     12,361
Noncontrolling interests     179     157
  Total equity     11,012     12,518
TOTAL LIABILITIES AND EQUITY   $ 30,283   $ 27,140
             

Contact Information

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