COSTCO WHOLESALE CORPORATION REPORTS THIRD QUARTER AND YEAR-TO-DATE
OPERATING RESULTS FOR FISCAL YEAR 2023
ISSAQUAH, Wash., May 25, 2023 - 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 2023, ended May 7, 2023.
Net sales for the quarter increased 1.9 percent, to $52.60 billion, from $51.61 billion last year. Net sales for the first 36 weeks increased 5.5 percent, to $160.28 billion, from $151.97 billion last year.
Comparable sales for the third quarter and first 36 weeks of fiscal 2023 were as follows:
12 Weeks
12 Weeks
36 Weeks
36 Weeks
Adjusted*
Adjusted*
U.S.
-0.1%
1.8%
4.9%
4.7%
Canada
-1.0%
7.4%
1.6%
8.4%
Other International
4.1%
8.4%
1.6%
9.0%
Total Company
0.3%
3.5%
4.0%
5.8%
E-commerce
-10.0%
-9.0%
-7.8%
-6.6%
*Excluding the impacts from changes in gasoline prices and foreign exchange.
Net income for the quarter was $1.30 billion, $2.93 per diluted share, which includes 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. Last year's third quarter net income was $1.35 billion, $3.04 per diluted share, which included a non-recurring $77 million pretax charge, $0.13 per diluted share, for incremental employee benefits. Net income for the first 36 weeks was $4.13 billion, $9.30 per diluted share, compared to $3.98 billion, $8.94 per diluted share, last year.
Costco currently operates 853 warehouses, including 587 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 32 in Japan, 29 in the United Kingdom, 18 in Korea, 14 in Taiwan, 14 in Australia, four in Spain, three in China, 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 25, 2023, and is available via a webcast on investor.costco.com (click on "Events & Presentations”).
Press Release
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.
CONTACTS: Costco Wholesale Corporation
Richard Galanti, 425/313-8203
David Sherwood, 425/313-8239
Josh Dahmen, 425/313-8254
COST-Earn
Press Release
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data) (unaudited)
12 Weeks Ended
36 Weeks Ended
May 7, 2023
May 8, 2022
May 7, 2023
May 8, 2022
REVENUE
Net sales
$
52,604
$
51,612
$
160,280
$
151,966
Membership fees
1,044
984
3,071
2,897
Total revenue
53,648
52,596
163,351
154,863
OPERATING EXPENSES
Merchandise costs
47,175
46,355
143,367
135,824
Selling, general and administrative
4,794
4,450
14,651
13,743
Operating income
1,679
1,791
5,333
5,296
OTHER INCOME (EXPENSE)
Interest expense
(36)
(35)
(104)
(110)
Interest income and other, net
128
71
295
138
INCOME BEFORE INCOME TAXES
1,771
1,827
5,524
5,324
Provision for income taxes
469
455
1,392
1,287
Net income including noncontrolling interests
1,302
1,372
4,132
4,037
Net income attributable to noncontrolling interests
—
(19)
—
(61)
NET INCOME ATTRIBUTABLE TO COSTCO
$
1,302
$
1,353
$
4,132
$
3,976
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic
$
2.94
$
3.05
$
9.31
$
8.96
Diluted
$
2.93
$
3.04
$
9.30
$
8.94
Shares used in calculation (000s):
Basic
443,814
443,700
443,843
443,567
Diluted
444,360
444,886
444,455
444,802
Press Release
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data) (unaudited)
Subject to Reclassification
May 7, 2023
August 28, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
12,493
$
10,203
Short-term investments
1,215
846
Receivables, net
2,502
2,241
Merchandise inventories
16,324
17,907
Other current assets
1,755
1,499
Total current assets
34,289
32,696
OTHER ASSETS
Property and equipment, net
25,931
24,646
Operating lease right-of-use assets
2,806
2,774
Other long-term assets
3,726
4,050
TOTAL ASSETS
$
66,752
$
64,166
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable
$
16,853
$
17,848
Accrued salaries and benefits
4,117
4,381
Accrued member rewards
2,076
1,911
Deferred membership fees
2,436
2,174
Current portion of long-term debt
—
73
Other current liabilities
6,226
5,611
Total current liabilities
31,708
31,998
OTHER LIABILITIES
Long-term debt, excluding current portion
6,497
6,484
Long-term operating lease liabilities
2,507
2,482
Other long-term liabilities
2,467
2,555
TOTAL LIABILITIES
43,179
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; 443,222,000 and 442,664,000 shares issued and outstanding
