Try our mobile app

Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2022 and February Sales Results

Published: 2022-03-03 21:15:00 ET
<<<  go to COST company page

ISSAQUAH, Wash., March 03, 2022 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2022, ended February 13, 2022.

Net sales for the quarter increased 16.1 percent, to $50.94 billion, from $43.89 billion last year. Net sales for the first 24 weeks increased 16.4 percent, to $100.35 billion, from $86.23 billion last year.

Comparable sales for the second quarter and first 24 weeks of fiscal 2022 were as follows:

         
  12 Weeks 12 Weeks 24 Weeks 24 Weeks
    Adjusted*   Adjusted*
 U.S.15.8% 11.3% 15.4% 10.6%
 Canada16.0% 12.4% 16.6% 10.3%
 Other International6.2% 9.0% 9.5% 9.9%
         
 Total Company14.4% 11.1% 14.7% 10.5%
         
 E-commerce12.5% 12.6% 13.3% 12.9%
         

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

Net income for the quarter was $1,299 million, $2.92 per diluted share. Last year’s second quarter net income was $951 million, $2.14 per diluted share, which included $246 million pretax, $0.41 per diluted share, in costs incurred primarily from COVID-19 premium wages. Net income for the first 24 weeks was $2.62 billion, or $5.90 per diluted share, compared to $2.12 billion, $4.76 per diluted share, last year.

For the four-week reporting month of February, ended February 27, 2022, the Company reported net sales of $16.29 billion, an increase of 15.9 percent from $14.05 billion last year. Lunar New Year/Chinese New Year occurred on February 1, 11 days earlier this year. The shift negatively impacted February’s Other International and Total Company sales by approximately 4% and 0.5%, respectively. For the twenty-six week period ended February 27, 2022, net sales were $108.39 billion, an increase of 16.3 percent from $93.16 billion last year.

Comparable sales for the February and year-to-date periods ended February 27, 2022, were as follows:

         
  4 Weeks 4 Weeks 26 Weeks 26 Weeks
    Adjusted*   Adjusted*
 U.S.17.4% 12.9% 15.5% 10.8%
 Canada11.7% 8.8% 16.1% 10.1%
 Other International-0.9% 1.3% 9.2% 9.7%
         
 Total Company14.0% 10.6% 14.7% 10.5%
         
 E-commerce10.2% 10.4% 13.1% 12.8%
         

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

Costco currently operates 828 warehouses, including 572 in the United States and Puerto Rico, 105 in Canada, 40 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, March 3, 2022, 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. 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, and COVID-19 related factors and challenges, including (among others) the duration of the pandemic, the unknown long-term economic impact, reduced shopping due to illness, travel restrictions or financial hardship, shifts in demand for products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures or operational limitations due to government mandates, or supply-chain disruptions, capacity constraints of third-party logistics suppliers, 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.

CONTACTS:  Costco Wholesale CorporationRichard Galanti, 425/313-8203 Bob Nelson, 425/313-8255 David Sherwood, 425/313-8239 Josh Dahmen, 425/313-8254
   

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

    
 12 Weeks Ended 24 Weeks Ended
 February 13, 2022 February 14, 2021 February 13, 2022 February 14, 2021
REVENUE       
Net sales$50,937  $43,888  $100,354  $86,235 
Membership fees 967   881   1,913   1,742 
Total revenue 51,904   44,769   102,267   87,977 
OPERATING EXPENSES       
Merchandise costs 45,517   39,078   89,469   76,536 
Selling, general and administrative 4,575   4,351   9,293   8,671 
Operating income 1,812   1,340   3,505   2,770 
OTHER INCOME (EXPENSE)       
Interest expense (36)  (40)  (75)  (79)
Interest income and other, net 25   19   67   48 
INCOME BEFORE INCOME TAXES         1,801   1,319   3,497   2,739 
Provision for income taxes 481   348   832   587 
Net income including noncontrolling interests 1,320   971   2,665   2,152 
Net income attributable to noncontrolling interests (21)  (20)  (42)  (35)
NET INCOME ATTRIBUTABLE TO COSTCO        $1,299  $951  $2,623  $2,117 
        
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
Basic$2.93  $2.15  $5.91  $4.78 
Diluted$2.92  $2.14  $5.90  $4.76 
        
Shares used in calculation (000s):       
Basic 443,623   443,134   443,500   443,043 
Diluted 444,916   444,494   444,760   444,440 
        

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

Subject to Reclassification

    
 February 13, 2022 August 29, 2021
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$11,819  $11,258 
Short-term investments 477   917 
Receivables, net 2,232   1,803 
Merchandise inventories 16,485   14,215 
Other current assets 1,552   1,312 
Total current assets 32,565   29,505 
OTHER ASSETS   
Property and equipment, net 24,052   23,492 
Operating lease right-of-use assets 2,840   2,890 
Other long-term assets 3,621   3,381 
TOTAL ASSETS        $63,078  $59,268 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$17,089  $16,278 
Accrued salaries and benefits 4,347   4,090 
Accrued member rewards 1,798   1,671 
Deferred membership fees 2,244   2,042 
Current portion of long-term debt —   799 
Other current liabilities 6,067   4,561 
Total current liabilities 31,545   29,441 
OTHER LIABILITIES   
Long-term debt, excluding current portion 6,658   6,692 
Long-term operating lease liabilities 2,588   2,642 
Other long-term liabilities 2,311   2,415 
TOTAL LIABILITIES         43,102   41,190 
COMMITMENTS AND CONTINGENCIES   
EQUITY   
Preferred stock $0.01 par value; 100,000,000 shares authorized; no shares issued and outstanding —   — 
Common stock $0.01 par value; 900,000,000 shares authorized; 443,279,000 and 441,825,000 shares issued and outstanding 4   4 
Additional paid-in capital 7,186   7,031 
Accumulated other comprehensive loss (1,246)  (1,137)
Retained earnings 13,474   11,666 
Total Costco stockholders’ equity 19,418   17,564 
Noncontrolling interests 558   514 
TOTAL EQUITY         19,976   18,078 
TOTAL LIABILITIES AND EQUITY        $63,078  $59,268 
        
Source: Costco Wholesale Corporation