Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2024

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

ISSAQUAH, Wash., May 30, 2024 (GLOBE NEWSWIRE) — Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the third quarter (twelve weeks) and the first 36 weeks of fiscal 2024, ended May 12, 2024.

Net sales for the quarter increased 9.1 percent, to $57.39 billion, from $52.60 billion last year. Net sales for the first 36 weeks increased 7.0 percent, to $171.44 billion, from $160.28 billion last year. Net sales were positively impacted by approximately 0.5 to 1.0 percent for the quarter from the shift of the fiscal calendar, as a result of the fifty-third week last year.

The following comparable sales data reflect comparable locations year-over-year and comparable retail weeks.

Comparable sales for the third quarter and first 36 weeks of fiscal 2024 were as follows:

  12 Weeks   12 Weeks   36 Weeks   36 Weeks
      Adjusted*       Adjusted*
U.S. 6.2%   6.0%   4.1%   4.5%
Canada 7.7%   7.4%   7.7%   8.2%
Other International 7.7%   8.5%   9.1%   7.9%
               
Total Company 6.6%   6.5%   5.3%   5.4%
               
E-commerce 20.7%   20.7%   14.9%   14.7%

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

Net income for the quarter was $1.68 billion, $3.78 per diluted share. Last year’s third quarter net income was $1.30 billion, $2.93 per diluted share, which included a non-recurring charge to merchandise costs of $298 million pretax, $0.50 per diluted share, primarily for the discontinuation of our charter shipping activities. Net income for the first 36 weeks was $5.01 billion, $11.27 per diluted share, compared to $4.13 billion, $9.30 per diluted share, last year.

Costco currently operates 878 warehouses, including 605 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, seven 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, May 30, 2024, and is available via a webcast on investor.costco.com (click on “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 and wages), energy and certain commodities, geopolitical conditions (including tariffs), 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 U.S. GAAP.

CONTACTS: Costco Wholesale Corporation
David Sherwood, 425/313-8239
Josh Dahmen, 425/313-8254
Andrew Yoon, 425/313-6305

COST-Earn

 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data) (unaudited)
 
  12 Weeks Ended   36 Weeks Ended
  May 12, 2024   May 7, 2023   May 12, 2024   May 7, 2023
REVENUE              
Net sales $ 57,392     $ 52,604     $ 171,440     $ 160,280  
Membership fees   1,123       1,044       3,316       3,071  
Total revenue   58,515       53,648       174,756       163,351  
OPERATING EXPENSES              
Merchandise costs   51,173       47,175       152,770       143,367  
Selling, general and administrative   5,145       4,794       15,743       14,651  
Operating income   2,197       1,679       6,243       5,333  
OTHER INCOME (EXPENSE)              
Interest expense   (41 )     (36 )     (120 )     (104 )
Interest income and other, net   128       128       504       295  
INCOME BEFORE INCOME TAXES   2,284       1,771       6,627       5,524  
Provision for income taxes   603       469       1,614       1,392  
NET INCOME $ 1,681     $ 1,302     $ 5,013     $ 4,132  
               
NET INCOME PER COMMON SHARE:              
Basic $ 3.79     $ 2.94     $ 11.29     $ 9.31  
Diluted $ 3.78     $ 2.93     $ 11.27     $ 9.30  
               
Shares used in calculation (000s):              
Basic   443,892       443,814       443,870       443,843  
Diluted   444,828       444,360       444,662       444,455  
               

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data) (unaudited)
 
Subject to Reclassification
 
  May 12, 2024   September 3, 2023
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 10,404     $ 13,700  
Short-term investments   1,095       1,534  
Receivables, net   2,583       2,285  
Merchandise inventories   17,430       16,651  
Other current assets   1,776       1,709  
Total current assets   33,288       35,879  
OTHER ASSETS      
Property and equipment, net   28,062       26,684  
Operating lease right-of-use assets   2,643       2,713  
Other long-term assets   3,918       3,718  
TOTAL ASSETS $ 67,911     $ 68,994  
LIABILITIES AND EQUITY      
CURRENT LIABILITIES      
Accounts payable $ 18,844     $ 17,483  
Accrued salaries and benefits   4,365       4,278  
Accrued member rewards   2,339       2,150  
Deferred membership fees   2,553       2,337  
Current portion of long-term debt   1,077       1,081  
Other current liabilities   6,183       6,254  
Total current liabilities   35,361       33,583  
OTHER LIABILITIES      
Long-term debt, excluding current portion   5,834       5,377  
Long-term operating lease liabilities   2,386       2,426  
Other long-term liabilities   2,559       2,550  
TOTAL LIABILITIES   46,140       43,936  
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; 443,374,000 and 442,793,000 shares issued and outstanding   2       2  
Additional paid-in capital   7,702       7,340  
Accumulated other comprehensive loss   (1,922 )     (1,805 )
Retained earnings   15,989       19,521  
TOTAL EQUITY   21,771       25,058  
TOTAL LIABILITIES AND EQUITY $ 67,911     $ 68,994  
               

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (amounts in millions) (unaudited)
 
Subject to Reclassification
 
  36 Weeks Ended
  May 12, 2024   May 7, 2023
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 5,013     $ 4,132  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization   1,531       1,389  
Non-cash lease expense   220       300  
Stock-based compensation   686       643  
Impairment of assets and other non-cash operating activities, net   (35 )     441  
Changes in working capital   966       438  
Net cash provided by operating activities   8,381       7,343  
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchases of short-term investments   (1,007 )     (947 )
Maturities and sales of short-term investments   1,441       594  
Additions to property and equipment   (3,133 )     (2,767 )
Other investing activities, net   (7 )     (27 )
Net cash used in investing activities   (2,706 )     (3,147 )
CASH FLOWS FROM FINANCING ACTIVITIES      
Repayments of short-term borrowings   (637 )     (698 )
Proceeds from short-term borrowings   628       667  
Repayments of long-term debt   —       (75 )
Proceeds from issuance of long-term debt   498       —  
Tax withholdings on stock-based awards   (313 )     (302 )
Repurchases of common stock   (484 )     (446 )
Cash dividend payments   (8,527 )     (799 )
Financing lease payments   (112 )     (204 )
Other financing activities, net   (1 )     (93 )
Net cash used in financing activities   (8,948 )     (1,950 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   (23 )     44  
Net change in cash and cash equivalents   (3,296 )     2,290  
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR   13,700       10,203  
CASH AND CASH EQUIVALENTS END OF YEAR $ 10,404     $ 12,493  
       

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