SOURCE: Costco

September 29, 2015 21:00 ET

Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2015 Operating Results

ISSAQUAH, WA--(Marketwired - Sep 29, 2015) - 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 ended August 30, 2015.

Net sales for the fourth quarter were $34.99 billion, an increase of one percent from $34.75 billion in fiscal 2014. Net sales for the fiscal year were $113.67 billion, an increase of three percent from $110.21 billion last year.

Comparable sales were as follows:

         
    16 Weeks   52 Weeks
U.S.   2%   3%
Canada   -10%   -5%
Other International   -7%   -3%
         
  Total Company   -1%   1%
           

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

         
    16 Weeks   52 Weeks
U.S.   6%   6%
Canada   7%   8%
Other International   6%   6%
         
  Total Company   6%   7%
         

Net income for the fourth quarter was $767 million, or $1.73 per diluted share, compared to $697 million, or $1.58 per diluted share, last year. 

Net income for this fiscal year was $2.38 billion, or $5.37 per diluted share, compared to $2.06 billion, or $4.65 per diluted share, last year. Net income this year was positively impacted by a $57 million ($.13 per diluted share) tax benefit in connection with a second-quarter special cash dividend received by the Company 401(k) plan participants.

Costco currently operates 686 warehouses, including 480 in the United States and Puerto Rico, 89 in Canada, 36 in Mexico, 27 in the United Kingdom, 23 in Japan, 12 in Korea, 11 in Taiwan, seven in Australia and one in Spain. The Company plans to open up to an additional 12 new warehouses (including one relocation) before the end of calendar year 2015. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

A conference call to discuss these fiscal 2015 fourth quarter and year-end operating results is scheduled for 8:00 a.m. (PT) tomorrow, September 30, 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  
CONSOLIDATED STATEMENTS OF INCOME  
(dollars in millions, except per share data)  
(unaudited)  
   
    16 Weeks Ended     16 Weeks Ended     52 Weeks Ended     52 Weeks Ended  
    August 30, 2015     August 31, 2014     August 30, 2015     August 31, 2014  
REVENUE                                
  Net sales   $ 34,993     $ 34,755     $ 113,666     $ 110,212  
  Membership fees     785       768       2,533       2,428  
    Total revenue     35,778       35,523       116,199       112,640  
OPERATING EXPENSES                                
  Merchandise costs     31,096       31,037       101,065       98,458  
  Selling, general and administrative     3,499       3,380       11,445       10,899  
  Preopening expenses     27       15       65       63  
    Operating income     1,156       1,091       3,624       3,220  
OTHER INCOME (EXPENSE)                                
  Interest expense     (40 )     (35 )     (124 )     (113 )
  Interest income and other, net     40       30       104       90  
INCOME BEFORE INCOME TAXES     1,156       1,086       3,604       3,197  
  Provision for income taxes     378       381       1,195       1,109  
Net income including noncontrolling interests     778       705       2,409       2,088  
Net income attributable to noncontrolling interests     (11 )     (8 )     (32 )     (30 )
NET INCOME ATTRIBUTABLE TO COSTCO   $ 767     $ 697     $ 2,377     $ 2,058  
                                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                                
  Basic   $ 1.75     $ 1.59     $ 5.41     $ 4.69  
  Diluted   $ 1.73     $ 1.58     $ 5.37     $ 4.65  
                                 
Shares used in calculation: (000's)                                
  Basic     438,835       437,875       439,455       438,693  
  Diluted     442,404       441,887       442,716       442,485  
                                 
                                 
                                 
Cash dividends declared per common share   $ 0.40     $ 0.355     $ 6.51     $ 1.33  
                                 
 
 
COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
 (amounts in millions, except par value and share data)
(unaudited)
 
Subject to Reclassifications
 
    August 30,
 2015
    August 31,
 2014
 
ASSETS                
CURRENT ASSETS                
  Cash and cash equivalents   $ 4,801     $ 5,738  
  Short-term investments     1,618       1,577  
  Receivables, net     1,224       1,148  
  Merchandise inventories     8,908       8,456  
  Deferred income taxes and other current assets     748       669  
    Total current assets     17,299       17,588  
PROPERTY AND EQUIPMENT                
  Land     4,961       4,716  
  Buildings and improvements     12,618       12,522  
  Equipment and fixtures     5,274       4,845  
  Construction in progress     811       592  
        23,664       22,675  
  Less accumulated depreciation and amortization     (8,263 )     (7,845 )
    Net property and equipment     15,401       14,830  
OTHER ASSETS     740       606  
    TOTAL ASSETS   $ 33,440     $ 33,024  
LIABILITIES AND EQUITY                
CURRENT LIABILITIES                
  Accounts payable   $ 9,011     $ 8,491  
  Accrued salaries and benefits     2,468       2,231  
  Accrued member rewards     813       773  
  Deferred membership fees     1,269       1,254  
  Current portion long-term debt     1,283       0  
  Other current liabilities     1,696       1,663  
    Total current liabilities     16,540       14,412  
LONG-TERM DEBT, excluding current portion     4,864       5,093  
DEFERRED INCOME TAXES AND OTHER LIABILITIES     1,193       1,004  
    Total liabilities     22,597       20,509  
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; 437,952,000 and 437,683,000 shares issued and outstanding     2       2  
  Additional paid-in capital     5,218       4,919  
  Accumulated other comprehensive loss     (1,121 )     (76 )
  Retained earnings     6,518       7,458  
    Total Costco stockholders' equity     10,617       12,303  
  Noncontrolling interests     226       212  
    Total equity     10,843       12,515  
    TOTAL LIABILITIES AND EQUITY   $ 33,440     $ 33,024  

Contact Information

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