Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2023 Operating Results

ISSAQUAH, Wash., Sept. 26, 2023 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation ("Costco" or the "Company") (Nasdaq: COST) today announced its operating results for the 17-week fourth quarter and the 53-week fiscal year ended September 3, 2023.

Net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4 percent from $70.76 billion in the 16-week fourth quarter last year. Net sales for the 53-week fiscal year were $237.71 billion, an increase of 6.7 percent from $222.73 billion in the 52-week fiscal year of 2022.

Comparable sales were as follows:

	17 Weeks		17 Weeks		53 Weeks		53 Weeks
			Adjusted*				Adjusted*
U.S.	0.2%		3.1%		3.3%		4.2%
Canada	1.8%		7.4%		1.7%		8.1%
Other International	5.5%		4.4%		2.8%		7.6%
Total Company	1.1%		3.8%		3.0%		5.2%
E-commerce	-0.8%		-0.6%		-5.7%		-4.8%

*Excluding the impacts from changes in gasoline prices and foreign exchange.

Net income for the 17-week fourth quarter was $2.160 billion, $4.86 per diluted share, compared to $1.868 billion, $4.20 per diluted share, in the 16-week fourth quarter last year.

Net income for the 53-week fiscal year was $6.292 billion, $14.16 per diluted share, compared to $5.844 billion, $13.14 per diluted share, in the 52-week prior year.

Costco currently operates 861 warehouses, including 591 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, five in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, September 26, 2023, and will be available via a webcast on investor.costco.com (click "Events & Presentations").

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. In some cases forward-looking statements can be identified because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms. 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, inflation or deflation, 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 (generally including health-care costs), energy and certain commodities, geopolitical conditions (including tariffs and the Ukraine conflict), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, public-health related factors, 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 the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with GAAP.

CONTACTS:	Costco Wholesale Corporation
	Richard Galanti, 425/313-8203
	David Sherwood, 425/313-8239
	Josh Dahmen, 425/313-8254

COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)

	17 Weeks Ended				16 Weeks Ended				53 Weeks Ended				52 Weeks Ended
	September 3, 2023				August 28, 2022				September 3, 2023				August 28, 2022
REVENUE
Net sales	$	77,430			$	70,764			$	237,710			$	222,730
Membership fees		1,509				1,327				4,580				4,224
Total revenue		78,939				72,091				242,290				226,954
OPERATING EXPENSES
Merchandise costs		69,219				63,558				212,586				199,382
Selling, general and administrative		6,939				6,036				21,590				19,779
Operating income		2,781				2,497				8,114				7,793
OTHER INCOME (EXPENSE)
Interest expense		(56	)			(48	)			(160	)			(158	)
Interest income and other, net		238				67				533				205
INCOME BEFORE INCOME TAXES		2,963				2,516				8,487				7,840
Provision for income taxes		803				638				2,195				1,925
Net income including noncontrolling interests		2,160				1,878				6,292				5,915
Net income attributable to noncontrolling interests		-				(10	)			-				(71	)
NET INCOME ATTRIBUTABLE TO COSTCO	$	2,160			$	1,868			$	6,292			$	5,844
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic	$	4.87			$	4.21			$	14.18			$	13.17
Diluted	$	4.86			$	4.20			$	14.16			$	13.14
Shares used in calculation (000's):
Basic		443,876				443,839				443,854				443,651
Diluted		444,445				444,655				444,452				444,757

COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)

Subject to Reclassification

			September 3, 2023				August 28, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents			$	13,700			$	10,203
Short-term investments				1,534				846
Receivables, net				2,285				2,241
Merchandise inventories				16,651				17,907
Other current assets				1,709				1,499
Total current assets				35,879				32,696
OTHER ASSETS
Property and equipment, net				26,684				24,646
Operating lease right-of-use assets				2,713				2,774
Other long-term assets				3,718				4,050
TOTAL ASSETS			$	68,994			$	64,166
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable			$	17,483			$	17,848
Accrued salaries and benefits				4,278				4,381
Accrued member rewards				2,150				1,911
Deferred membership fees				2,337				2,174
Current portion of long-term debt				1,081				73
Other current liabilities				6,254				5,611
Total current liabilities				33,583				31,998
OTHER LIABILITIES
Long-term debt, excluding current portion				5,377				6,484
Long-term operating lease liabilities				2,426				2,482
Other long-term liabilities				2,550				2,555
TOTAL LIABILITIES				43,936				43,519
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding				-				-
Common stock $0.005 par value; 900,000,000 shares authorized; 442,793,000 and 442,664,000 shares issued and outstanding				2				2
Additional paid-in capital				7,340				6,884
Accumulated other comprehensive loss				(1,805	)			(1,829	)
Retained earnings				19,521				15,585
Total Costco stockholders' equity				25,058				20,642
Noncontrolling interests				-				5
TOTAL EQUITY				25,058				20,647
TOTAL LIABILITIES AND EQUITY			$	68,994			$	64,166

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in millions)
(unaudited)

Subject to Reclassification

	53 Weeks Ended				52 Weeks Ended
	September 3, 2023				August 28, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income including noncontrolling interests	$	6,292			$	5,915
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization		2,077				1,900
Non-cash lease expense		412				377
Stock-based compensation		774				724
Other non-cash operating activities, net		495				39
Changes in working capital		1,018				(1,563	)
Net cash provided by operating activities		11,068				7,392
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments		(1,622	)			(1,121	)
Maturities and sales of short-term investments		937				1,145
Additions to property and equipment		(4,323	)			(3,891	)
Other investing activities, net		36				(48	)
Net cash used in investing activities		(4,972	)			(3,915	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings		(935	)			(6	)
Proceeds from short-term borrowings		917				53
Repayments of long-term debt		(75	)			(800	)
Tax withholdings on stock-based awards		(303	)			(363	)
Repurchases of common stock		(676	)			(439	)
Cash dividend payments		(1,251	)			(1,498	)
Financing lease payments		(291	)			(176	)
Dividend to noncontrolling interest		-				(208	)
Acquisition of noncontrolling interest		-				(842	)
Other financing activities, net		-				(4	)
Net cash used in financing activities		(2,614	)			(4,283	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		15				(249	)
Net change in cash and cash equivalents		3,497				(1,055	)
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR		10,203				11,258
CASH AND CASH EQUIVALENTS END OF YEAR	$	13,700			$	10,203