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Exhibit 99.1
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COSTCO WHOLESALE CORPORATION REPORTS THIRD QUARTER AND YEAR-TO-DATE
OPERATING RESULTS FOR FISCAL 2021
ISSAQUAH, Wash., May 27, 2021 - 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 2021, ended May 9, 2021.
Net sales for the quarter increased 21.7 percent, to $44.38 billion, from $36.45 billion last year. Net sales for the first 36 weeks increased 17.7 percent, to $130.61 billion, from $110.94 billion last year.
Comparable sales for the third quarter fiscal 2021 were as follows:
| 12 Weeks | 12 Weeks | 36 Weeks | 36 Weeks | |||||||||||||
| Adjusted* | Adjusted* | |||||||||||||||
| U.S. |
18.2 | % | 15.2 | % | 14.7 | % | 15.1 | % | ||||||||
| Canada |
32.3 | % | 16.7 | % | 20.2 | % | 14.7 | % | ||||||||
| Other International |
22.9 | % | 13.1 | % | 21.1 | % | 16.3 | % | ||||||||
| Total Company |
20.6 | % | 15.1 | % | 16.3 | % | 15.2 | % | ||||||||
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| E-commerce |
41.2 | % | 38.2 | % | 65.1 | % | 63.6 | % | ||||||||
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| * | Excluding the impacts from changes in gasoline prices and foreign exchange. |
Net income for the quarter was $1,220 million, or $2.75 per diluted share, which included $57 million pretax, or $0.09 per diluted share, in COVID-19 related costs, primarily from $2 per hour premium pay. Last year’s third quarter net income was $838 million, or $1.89 per diluted share, inclusive of $283 million pretax, or $0.47 per diluted share of COVID related costs. Net income for the first 36 weeks was $3.34 billion, or $7.51 per diluted share, compared to $2.61 billion, or $5.89 per diluted share, last year.
Costco currently operates 809 warehouses, including 559 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 29 in the United Kingdom, 29 in Japan, 16 in Korea, 14 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France, and China. 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, May 27, 2021, 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
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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 (generally including health-care costs), energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, 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 away from discretionary or higher-priced products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures due to reduced workforces or 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 Corporation | |
| Richard Galanti, 425/313-8203 | ||
| Bob Nelson, 425/313-8255 | ||
| David Sherwood, 425/313-8239 | ||
| Josh Dahmen, 425/313-8254 |
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COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
| 12 Weeks Ended | 36 Weeks Ended | |||||||||||||||
| May 9, 2021 | May 10, 2020 | May 9, 2021 | May 10, 2020 | |||||||||||||
| REVENUE |
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| Net sales |
$ | 44,376 | $ | 36,451 | $ | 130,611 | $ | 110,943 | ||||||||
| Membership fees |
901 | 815 | 2,643 | 2,435 | ||||||||||||
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| Total revenue |
45,277 | 37,266 | 133,254 | 113,378 | ||||||||||||
| OPERATING EXPENSES |
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| Merchandise costs |
39,415 | 32,249 | 115,951 | 98,538 | ||||||||||||
| Selling, general and administrative |
4,189 | 3,830 | 12,829 | 11,305 | ||||||||||||
| Preopening expenses |
10 | 8 | 41 | 29 | ||||||||||||
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| Operating income |
1,663 | 1,179 | 4,433 | 3,506 | ||||||||||||
| OTHER INCOME (EXPENSE) |
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| Interest expense |
(40 | ) | (37 | ) | (119 | ) | (109 | ) | ||||||||
| Interest income and other, net |
27 | 21 | 75 | 101 | ||||||||||||
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| INCOME BEFORE INCOME TAXES |
1,650 | 1,163 | 4,389 | 3,498 | ||||||||||||
| Provision for income taxes |
417 | 311 | 1,004 | 843 | ||||||||||||
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| Net income including noncontrolling interests |
1,233 | 852 | 3,385 | 2,655 | ||||||||||||
| Net income attributable to noncontrolling interests |
(13 | ) | (14 | ) | (48 | ) | (42 | ) | ||||||||
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| NET INCOME ATTRIBUTABLE TO COSTCO |
$ | 1,220 | $ | 838 | $ | 3,337 | $ | 2,613 | ||||||||
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| NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: |
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| Basic |
$ | 2.75 | $ | 1.90 | $ | 7.53 | $ | 5.91 | ||||||||
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| Diluted |
$ | 2.75 | $ | 1.89 | $ | 7.51 | $ | 5.89 | ||||||||
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| Shares used in calculation (000s): |
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| Basic |
443,043 | 442,322 | 443,043 | 442,054 | ||||||||||||
| Diluted |
444,127 | 443,855 | 444,336 | 443,754 | ||||||||||||
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COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
Subject to Reclassification
| May 9, 2021 | August 30, 2020 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS |
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| Cash and cash equivalents |
$ | 10,226 | $ | 12,277 | ||||
| Short-term investments |
900 | 1,028 | ||||||
| Receivables, net |
1,595 | 1,550 | ||||||
| Merchandise inventories |
13,975 | 12,242 | ||||||
| Other current assets |
1,220 | 1,023 | ||||||
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| Total current assets |
27,916 | 28,120 | ||||||
| OTHER ASSETS |
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| Property and equipment, net |
23,177 | 21,807 | ||||||
| Operating lease right-of-use assets |
2,875 | 2,788 | ||||||
| Other long-term assets |
3,306 | 2,841 | ||||||
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| TOTAL ASSETS |
$ | 57,274 | $ | 55,556 | ||||
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| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES |
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| Accounts payable |
$ | 15,538 | $ | 14,172 | ||||
| Accrued salaries and benefits |
3,826 | 3,605 | ||||||
| Accrued member rewards |
1,617 | 1,393 | ||||||
| Deferred membership fees |
2,102 | 1,851 | ||||||
| Current portion of long-term debt |
92 | 95 | ||||||
| Other current liabilities |
4,807 | 3,728 | ||||||
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| Total current liabilities |
27,982 | 24,844 | ||||||
| OTHER LIABILITIES |
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| Long-term debt, excluding current portion |
7,495 | 7,514 | ||||||
| Long-term operating lease liabilities |
2,641 | 2,558 | ||||||
| Other long-term liabilities |
2,182 | 1,935 | ||||||
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| TOTAL LIABILITIES |
40,300 | 36,851 | ||||||
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| COMMITMENTS AND CONTINGENCIES EQUITY |
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| 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; 442,141,000 and 441,255,000 shares issued and outstanding |
4 | 4 | ||||||
| Additional paid-in capital |
6,921 | 6,698 | ||||||
| Accumulated other comprehensive loss |
(909 | ) | (1,297 | ) | ||||
| Retained earnings |
10,466 | 12,879 | ||||||
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| Total Costco stockholders’ equity |
16,482 | 18,284 | ||||||
| Noncontrolling interests |
492 | 421 | ||||||
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| TOTAL EQUITY |
16,974 | 18,705 | ||||||
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| TOTAL LIABILITIES AND EQUITY |
$ | 57,274 | $ | 55,556 | ||||
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