ISSAQUAH, WA -- (Marketwired) -- 05/25/16 -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) today announced its operating results for the third quarter (twelve weeks) and first thirty-six weeks of fiscal 2016, ended May 8, 2016.
Net sales for the quarter increased two percent, to $26.15 billion from $25.52 billion last year. Net sales for the first thirty-six weeks increased two percent, to $80.34 billion from $78.67 billion last year.
Comparable sales for the twelve-week and thirty-six-week periods were as follows:
12 Weeks 36 Weeks ---------- ---------- U.S. 0% 2% Canada 1% -5% Other International -2% -4% Total Company 0% 0% ========== ==========
Comparable sales for these periods excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:
12 Weeks 36 Weeks ---------- ---------- U.S. 3% 4% Canada 8% 9% Other International 3% 5% Total Company 3% 5% ========== ==========
Net income for the quarter was $545 million, or $1.24 per diluted share, compared to $516 million, or $1.17 per diluted share, last year. Net income for the thirty-six weeks was $1.57 billion, or $3.56 per diluted share, compared to $1.61 billion, or $3.64 per diluted share, last year. Net income for the thirty-six-week period last year was positively impacted by $43 million ($0.10 per diluted share) in net nonrecurring income tax benefits.
Costco currently operates 705 warehouses, including 493 in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 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 fiscal 2016 third quarter operating results is scheduled for 8:00 a.m. (PT) on May 26, 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) 12 Weeks Ended 36 Weeks Ended ------------------ ------------------ May 8, May 10, May 8, May 10, 2016 2015 2016 2015 -------- -------- -------- -------- REVENUE Net sales $ 26,151 $ 25,517 $ 80,345 $ 78,673 Membership fees 618 584 1,814 1,748 -------- -------- -------- -------- Total revenue 26,769 26,101 82,159 80,421 OPERATING EXPENSES Merchandise costs 23,162 22,687 71,252 69,969 Selling, general and administrative 2,731 2,579 8,372 7,946 Preopening expenses 18 14 54 38 -------- -------- -------- -------- Operating income 858 821 2,481 2,468 OTHER INCOME (EXPENSE) Interest expense (30) (31) (94) (84) Interest income and other, net 7 9 51 64 -------- -------- -------- -------- INCOME BEFORE INCOME TAXES 835 799 2,438 2,448 Provision for income taxes 286 280 847 817 -------- -------- -------- -------- Net income including noncontrolling interests 549 519 1,591 1,631 Net income attributable to noncontrolling interests (4) (3) (20) (21) -------- -------- -------- -------- NET INCOME ATTRIBUTABLE TO COSTCO $ 545 $ 516 $ 1,571 $ 1,610 ======== ======== ======== ======== NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic $ 1.24 $ 1.17 $ 3.58 $ 3.66 ======== ======== ======== ======== Diluted $ 1.24 $ 1.17 $ 3.56 $ 3.64 ======== ======== ======== ======== Shares used in calculation: (000's) Basic 438,815 440,070 438,930 439,733 Diluted 441,066 443,132 441,321 442,721 Cash dividends declared per common share $ 0.45 $ 0.40 $ 1.25 $ 6.11 COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited) Subject to Reclassifications May 8, August 30, 2016 2015 ------------- ------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,884 $ 4,801 Short-term investments 1,137 1,618 Receivables, net 1,300 1,224 Merchandise inventories 8,927 8,908 Other current assets 294 228 ------------- ------------- Total current assets 16,542 16,779 ------------- ------------- PROPERTY AND EQUIPMENT Land 5,266 4,961 Buildings and improvements 13,645 12,618 Equipment and fixtures 5,834 5,274 Construction in progress 707 811 ------------- ------------- 25,452 23,664 Less accumulated depreciation and amortization (8,961) (8,263) ------------- ------------- Net property and equipment 16,491 15,401 ------------- ------------- OTHER ASSETS 840 837 ------------- ------------- TOTAL ASSETS $ 33,873 $ 33,017 ============= ============= LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 8,828 $ 9,011 Current portion of long-term debt 1,193 1,283 Accrued salaries and benefits 2,398 2,468 Accrued member rewards 861 813 Deferred membership fees 1,416 1,269 Other current liabilities 2,303 1,695 ------------- ------------- Total current liabilities 16,999 16,539 LONG-TERM DEBT, excluding current portion 3,921 4,852 OTHER LIABILITIES 1,205 783 ------------- ------------- Total liabilities 22,125 22,174 ------------- ------------- 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; 438,368,000 and 437,952,000 shares issued and outstanding 2 2 Additional paid-in capital 5,404 5,218 Accumulated other comprehensive loss (1,126) (1,121) Retained earnings 7,225 6,518 ------------- ------------- Total Costco stockholders' equity 11,505 10,617 Noncontrolling interests 243 226 ------------- ------------- Total equity 11,748 10,843 ------------- ------------- TOTAL LIABILITIES AND EQUITY $ 33,873 $ 33,017 ============= =============
CONTACTS:
Costco Wholesale Corporation
Richard Galanti
425/313-8203
Bob Nelson
425/313-8255
Jeff Elliott
425/313-8264