12 Weeks 24 Weeks
--------- ---------
U.S. 5% 3%
International 26% 19%
Total 9% 6%
========= =========
Comparable sales for the 12-week and 24-week periods, excluding the positive impacts from gasoline inflation and the strengthening of foreign currencies (primarily in Canada, the United Kingdom and Korea), were as follows:
12 Weeks 24 Weeks
--------- ---------
U.S. 2% 2%
International 10% 9%
Total 3% 3%
========= =========
Net income for the second quarter of fiscal 2010 was $299 million, or $.67 per diluted share, compared to $239 million, or $.55 per diluted share, during the second quarter of fiscal 2009. Net income for the first half of fiscal 2010 was $565 million, or $1.27 per diluted share, compared to net income for the first half of fiscal 2009 of $502 million or $1.14 per diluted share. The Company recorded a $22 million pre-tax charge ($0.03 per diluted share) related to a change in employee benefits in the second quarter of fiscal 2010 whereby certain unused time off will now be paid annually to the employee. The Company today also reported net sales of $5.61 billion for the four weeks ended February 28, 2010, an increase of eleven percent from $5.06 billion in the same four-week period of the prior fiscal year. For the six-month retail reporting period of September through February, the twenty-six weeks ended February 28, 2010, which includes the first two weeks of the Company's fiscal third quarter, the Company reported net sales of $38.06 billion, an increase of eight percent from $35.08 billion during the comparable period of the prior fiscal year. Comparable sales for the 4-week retail-reporting month of February and the 26-week retail-reporting period of September through February were as follows:
4 Weeks 26 Weeks
--------- ---------
U.S. 5% 3%
International 26% 19%
Total 9% 6%
========= =========
Comparable sales for the 4-week and 26-week periods, excluding the positive impacts from gasoline inflation and strengthening of foreign currencies (primarily in Canada, the United Kingdom and Korea), were as follows:
4 Weeks 26 Weeks
--------- ---------
U.S. 2% 2%
International 10% 9%
Total 4% 3%
========= =========
Costco currently operates 566 warehouses, including 413 in the United States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, seven in Korea, six in Taiwan, nine in Japan, one in Australia and 32 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada. The Company plans to open an additional seven to eight new warehouses prior to the end of its 2010 fiscal year on August 29, 2010. A conference call to discuss these second quarter operating results and February sales is scheduled for 7:00 a.m. (PT) today, March 3, 2010, 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, actions of vendors, rising costs associated with employees (including health care costs), 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 24 Weeks Ended
------------------------ ------------------------
February February February February
14, 2010 15, 2009 14, 2010 15, 2009
----------- ----------- ----------- -----------
REVENUE
Net sales $ 18,356 $ 16,488 $ 35,278 $ 32,524
Membership fees 386 355 763 714
----------- ----------- ----------- -----------
Total revenue 18,742 16,843 36,041 33,238
OPERATING EXPENSES
Merchandise costs 16,396 14,771 31,477 29,047
Selling, general and
administrative 1,873 1,666 3,650 3,343
Preopening expenses 3 7 14 20
Provision for
impaired assets and
closing costs, net - 1 2 8
----------- ----------- ----------- -----------
Operating income 470 398 898 820
OTHER INCOME (EXPENSE)
Interest expense (26) (25) (50) (50)
Interest income and
other, net 30 12 48 33
----------- ----------- ----------- -----------
INCOME BEFORE INCOME
TAXES 474 385 896 803
Provision for income
taxes 169 142 321 294
----------- ----------- ----------- -----------
Net income including
noncontrolling
interests 305 243 575 509
Net income attributable
to noncontrolling
interests (6) (4) (10) (7)
----------- ----------- ----------- -----------
NET INCOME ATTRIBUTABLE
TO COSTCO $ 299 $ 239 $ 565 $ 502
=========== =========== =========== ===========
NET INCOME PER COMMON
SHARE ATTRIBUTABLE TO
COSTCO:
Basic $ 0.68 $ 0.55 $ 1.29 $ 1.16
=========== =========== =========== ===========
Diluted $ 0.67 $ 0.55 $ 1.27 $ 1.14
=========== =========== =========== ===========
Shares used in
calculation (000's)
Basic 439,786 433,476 438,475 432,963
Diluted 446,918 439,688 445,870 440,095
Dividends per share $ 0.18 $ 0.16 $ 0.36 $ 0.32
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
February 14, August 30,
2010 2009
--------------- ---------------
ASSETS
Cash and cash equivalents $ 4,134 $ 3,157
Short-term investments 585 570
Receivables, net 951 834
Merchandise inventories 5,365 5,405
Deferred income taxes and other current
assets 466 371
--------------- ---------------
Total current assets 11,501 10,337
Property and equipment, net 11,105 10,900
Other assets 760 742
--------------- ---------------
TOTAL ASSETS $ 23,366 $ 21,979
=============== ===============
LIABILITIES AND EQUITY
Accounts payable $ 5,598 $ 5,450
Short-term borrowings and current portion
of long-term debt 91 96
Other current liabilities 4,176 3,735
--------------- ---------------
Total current liabilities 9,865 9,281
Long-term debt, excluding current portion 2,134 2,130
Deferred income taxes and other liabilities 624 464
--------------- ---------------
Total liabilities 12,623 11,875
--------------- ---------------
Total Costco stockholders' equity 10,651 10,024
Noncontrolling interests 92 80
--------------- ---------------
Total equity 10,743 10,104
--------------- ---------------
TOTAL LIABILITIES AND EQUITY $ 23,366 $ 21,979
=============== ===============
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264