Costco Wholesale Corporation Reports First Quarter Fiscal Year 2023 Operating Results

ISSAQUAH, Wash., Dec. 08, 2022 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2023, ended November 20, 2022.

Net sales for the first quarter increased 8.1 percent, to $53.44 billion from $49.42 billion last year.

Comparable sales for the first quarter fiscal 2023 were as follows:

 

 

 

 

 

12 Weeks

 

12 Weeks

 

 

 

Adjusted*

U.S.

9.3%

 

6.5%

Canada

2.4%

 

8.3%

Other International

-3.1%

 

9.1%

 

 

 

 

Total Company

6.6%

 

7.1%

 

 

 

 

E-commerce

-3.7%

 

-2.0%

 

 

 

 

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

Net income for the quarter was $1,364 million, $3.07 per diluted share, compared to $1,324 million, $2.98 per diluted share, last year. This 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. Last year’s results included a write-off of certain information technology assets of $118 million pre-tax, $0.20 per diluted share, and a tax benefit of $91 million, $0.21 per diluted share, related to stock-based compensation.

Costco currently operates 847 warehouses, including 583 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 18 in Korea, 14 in Taiwan, 14 in Australia, four in Spain, two each in France and China, and one each in Iceland, New Zealand and Sweden. 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, December 8, 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, COVID-19 related factors and challenges, 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

COST-Earn

 

 

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

 

 

12 Weeks Ended



November 20, 2022

 

November 21, 2021

REVENUE

 

 

 

Net sales

$

53,437

 

 

$

49,417

 

Membership fees

 

1,000

 

 

 

946

 

Total revenue

 

54,437

 

 

 

50,363

 

OPERATING EXPENSES

 

 

 

Merchandise costs

 

47,769

 

 

 

43,952

 

Selling, general and administrative

 

4,917

 

 

 

4,718

 

Operating income

 

1,751

 

 

 

1,693

 

OTHER INCOME (EXPENSE)

 

 

 

Interest expense

 

(34

)

 

 

(39

)

Interest income and other, net

 

53

 

 

 

42

 

INCOME BEFORE INCOME TAXES

 

1,770

 

 

 

1,696

 

Provision for income taxes

 

406

 

 

 

351

 

Net income including noncontrolling interests

 

1,364

 

 

 

1,345

 

Net income attributable to noncontrolling interests

 

 

 

 

(21

)

NET INCOME ATTRIBUTABLE TO COSTCO

$

1,364

 

 

$

1,324

 

 

 

 

 

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:

 

 

 

Basic

$

3.07

 

 

$

2.99

 

Diluted

$

3.07

 

 

$

2.98

 

 

 

 

 

Shares used in calculation (000s):

 

 

 

Basic

 

443,837

 

 

 

443,377

 

Diluted

 

444,531

 

 

 

444,604

 

 

 

 

 


 

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

 

Subject to Reclassification

 

 

November 20, 2022

 

August 28, 2022

ASSETS

 

 

 

CURRENT ASSETS

 

 

 

Cash and cash equivalents

$

10,856

 

 

$

10,203

 

Short-term investments

 

817

 

 

 

846

 

Receivables, net

 

2,312

 

 

 

2,241

 

Merchandise inventories

 

18,571

 

 

 

17,907

 

Other current assets

 

1,594

 

 

 

1,499

 

Total current assets

 

34,150

 

 

 

32,696

 

OTHER ASSETS

 

 

 

Property and equipment, net

 

25,144

 

 

 

24,646

 

Operating lease right-of-use assets

 

2,787

 

 

 

2,774

 

Other long-term assets

 

3,946

 

 

 

4,050

 

TOTAL ASSETS        

$

66,027

 

 

$

64,166

 

LIABILITIES AND EQUITY

 

 

 

CURRENT LIABILITIES

 

 

 

Accounts payable

$

18,348

 

 

$

17,848

 

Accrued salaries and benefits

 

4,317

 

 

 

4,381

 

Accrued member rewards

 

1,959

 

 

 

1,911

 

Deferred membership fees

 

2,322

 

 

 

2,174

 

Current portion of long-term debt

 

71

 

 

 

73

 

Other current liabilities

 

6,050

 

 

 

5,611

 

Total current liabilities

 

33,067

 

 

 

31,998

 

OTHER LIABILITIES

 

 

 

Long-term debt, excluding current portion

 

6,472

 

 

 

6,484

 

Long-term operating lease liabilities

 

2,503

 

 

 

2,482

 

Other long-term liabilities

 

2,509

 

 

 

2,555

 

TOTAL LIABILITIES        

 

44,551

 

 

 

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; 443,841,000 and 442,664,000 shares issued and outstanding

 

2

 

 

 

2

 

Additional paid-in capital

 

6,982

 

 

 

6,884

 

Accumulated other comprehensive loss

 

(1,925

)

 

 

(1,829

)

Retained earnings

 

16,412

 

 

 

15,585

 

Total Costco stockholders’ equity

 

21,471

 

 

 

20,642

 

Noncontrolling interests

 

5

 

 

 

5

 

TOTAL EQUITY        

 

21,476

 

 

 

20,647

 

TOTAL LIABILITIES AND EQUITY        

$

66,027

 

 

$

64,166