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Published: 2023-12-14 16:39:35 ET
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EX-99.1 2 costex9918-k121423.htm EX-99.1 Document

Exhibit 99.1
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Press Release
COSTCO WHOLESALE CORPORATION REPORTS FIRST QUARTER FISCAL YEAR 2024 OPERATING RESULTS AND ANNOUNCES A SPECIAL CASH DIVIDEND OF $15 PER SHARE
ISSAQUAH, Wash., December 14, 2023 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2024, ended November 26, 2023.
For the first quarter the Company reported net sales of $56.72 billion, an increase of 6.1 percent from $53.44 billion for the first quarter of fiscal year 2023, ended November 20, 2022.
Net sales were benefited by approximately one-half to one percent in the U.S. and worldwide from the shift of the fiscal calendar, as a result of the fifty-third week in fiscal year 2023.
The following comparable sales reflect comparable locations year-over-year and comparable retail weeks.
Comparable sales for the twelve weeks ended November 26, 2023 were as follows:
12 Weeks12 Weeks
Adjusted*
U.S.2.0%2.6%
Canada6.4%8.2%
Other International11.2%7.1%
Total Company3.8%3.9%
E-commerce6.3%6.1%
*Excluding impacts from changes in gasoline prices and foreign exchange.
Net income for the quarter was $1,589 million, $3.58 per diluted share, compared to $1,364 million, $3.07 per diluted share, last year. This year's results included a tax benefit of $44 million, $0.10 per diluted share, related to stock-based compensation. Last year's results included a charge of $93 million pre-tax, $0.15 per diluted share, primarily related to downsizing our charter shipping activities, and a tax benefit of $53 million, $0.12 per diluted share, related to stock-based compensation.
The Company also announced that the Board of Directors has declared a special cash dividend on Costco common stock of $15 per share, payable January 12, 2024, to shareholders of record as of the close of business on December 28, 2023. The aggregate amount of the payment will be approximately $6.7 billion.
Costco currently operates 871 warehouses, including 600 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, 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, December 14, 2023, and will be available via a webcast on investor.costco.com (click "Events & Presentations”).


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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. 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




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Press Release

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

12 Weeks Ended
November 26,
2023		November 20,
2022
REVENUE
Net sales$56,717 $53,437 
Membership fees1,082 1,000 
Total revenue57,799 54,437 
OPERATING EXPENSES
Merchandise costs50,457 47,769 
Selling, general and administrative5,358 4,917 
Operating income1,984 1,751 
OTHER INCOME (EXPENSE)
Interest expense(38)(34)
Interest income and other, net160 53 
INCOME BEFORE INCOME TAXES2,106 1,770 
Provision for income taxes517 406 
NET INCOME$1,589 $1,364 
NET INCOME PER COMMON SHARE:
Basic$3.58 $3.07 
Diluted$3.58 $3.07 
Shares used in calculation (000's):
Basic443,827 443,837 
Diluted444,403 444,531 



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Press Release

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

November 26,
2023		September 3,
2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents$17,011 $13,700 
Short-term investments853 1,534 
Receivables, net2,542 2,285 
Merchandise inventories18,001 16,651 
Other current assets1,673 1,709 
Total current assets40,080 35,879 
OTHER ASSETS
Property and equipment, net27,168 26,684 
Operating lease right-of-use assets2,672 2,713 
Other long-term assets3,803 3,718 
TOTAL ASSETS$73,723 $68,994 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$20,357 $17,483 
Accrued salaries and benefits4,474 4,278 
Accrued member rewards2,207 2,150 
Deferred membership fees2,462 2,337 
Current portion of long-term debt1,080 1,081 
Other current liabilities6,188 6,254 
Total current liabilities36,768 33,583 
OTHER LIABILITIES
Long-term debt, excluding current portion5,866 5,377 
Long-term operating lease liabilities2,401 2,426 
Other long-term liabilities2,541 2,550 
TOTAL LIABILITIES47,576 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; 443,787,000 and 442,793,000 shares issued and outstanding2 2 
Additional paid-in capital7,489 7,340 
Accumulated other comprehensive loss(1,843)(1,805)
Retained earnings20,499 19,521 
TOTAL EQUITY26,147 25,058 
TOTAL LIABILITIES AND EQUITY$73,723 $68,994 


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Press Release

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

12 Weeks Ended
November 26,
2023		November 20,
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$1,589 $1,364 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization501 447 
Non-cash lease expense74 111 
Stock-based compensation444 402 
Impairment of assets and other non-cash operating activities, net43 121 
Changes in working capital
2,000 165 
Net cash provided by operating activities4,651 2,610 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments(200)(253)
Maturities and sales of short-term investments878 274 
Additions to property and equipment(1,040)(1,057)
Other investing activities, net(4)(21)
Net cash used in investing activities(366)(1,057)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings(173)(77)
Proceeds from short-term borrowings144 29 
Proceeds from issuance of long-term debt498 — 
Tax withholdings on stock-based awards(292)(301)
Repurchases of common stock(162)(141)
Cash dividend payments(905)(400)
Financing lease payments(82)(60)
Other financing activities, net(2)87 
Net cash used in financing activities(974)(863)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
— (37)
Net change in cash and cash equivalents3,311 653 
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR13,700 10,203 
CASH AND CASH EQUIVALENTS END OF YEAR$17,011 $10,856