COST
$391.77
Costco Wholesale
$3.38
.87%
Earnings Details
Quarter August 2020
Thursday, September 24, 2020 4:15:00 PM
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Summary

Costco Wholesale Beats

Costco Wholesale (COST) reported Quarter August 2020 earnings of $3.13 per share on revenue of $53.4 billion. The consensus earnings estimate was $2.85 per share on revenue of $52.6 billion. The Earnings Whisper number was $2.87 per share. Revenue grew 12.4% on a year-over-year basis.

Costco Wholesale Corp and its subsidiaries operate membership warehouses. It offers its members low prices on a limited selection of nationally branded and select private-label products in merchandise categories.

Results
Reported Earnings
$3.13
Earnings Whisper
$2.87
Consensus Estimate
$2.85
Reported Revenue
$53.38 Bil
Revenue Estimate
$52.61 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2020 Operating Results

ISSAQUAH, Wash., Sept. 24, 2020 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the 16-week fourth quarter and the 52-week fiscal year, ended August 30, 2020.

Net sales for the quarter increased 12.5 percent, to $52.28 billion from $46.45 billion last year. Net sales for the fiscal year increased 9.3 percent, to $163.22 billion from $149.35 billion last year.

Comparable sales for the fourth quarter and the fiscal year were as follows:

           
   16 Weeks 16 Weeks 52 Weeks 52 Weeks 
     Adjusted*   Adjusted* 
 U.S. 11.0% 13.6% 8.1% 9.2% 
 Canada 9.1% 12.6% 5.0% 7.4% 
 Other International 16.1% 18.8% 8.9% 11.2% 
           
 Total Company 11.4% 14.1% 7.7% 9.2% 
           
 E-commerce 90.6% 91.3% 49.5% 50.1% 
           

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

Net income for the fourth quarter was $1.389 billion, or $3.13 per diluted share, compared to $1.097 billion, or $2.47 per diluted share last year. This year’s fourth quarter was negatively impacted by incremental expense related to COVID-19 premium wages and sanitation costs of $281 million pretax ($0.47 per diluted share) and a $36 million pretax charge ($0.06 per diluted share) related to the prepayment of $1.5 billion of debt. These items were partially offset by an $84 million pretax benefit ($0.15 per diluted share) for the partial reversal of a reserve of $123 million pretax ($0.22 cents per diluted share), related to a product tax assessment taken in the fourth quarter of last year.

Net income for the fiscal year was $4.00 billion, or $9.02 per diluted share, compared to $3.66 billion, or $8.26 per diluted share in the prior year.

Costco currently operates 795 warehouses, including 552 in the United States and Puerto Rico, 101 in Canada, 39 in Mexico, 29 in the United Kingdom, 27 in Japan, 16 in Korea, 13 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, September 24, 2020, 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, 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 impacts, reduced customer shopping due to illness, travel restrictions or financial hardship, shifts in demand away from discretionary or higher-priced products, reduced workforce due to illness, quarantine, or government mandates, temporary store closures due to reduced workforces or government mandates, or supply-chain disruptions, 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


 
COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
    
 16 Weeks Ended 52 Weeks Ended
 August 30,
2020
 September 1,
2019
 August 30,
2020
 September 1,
2019
REVENUE       
Net sales$52,277   $46,448   $163,220   $149,351  
Membership fees1,106   1,050   3,541   3,352  
Total revenue53,383   47,498   166,761   152,703  
OPERATING EXPENSES       
Merchandise costs46,401   41,310   144,939   132,886  
Selling, general and administrative5,027   4,684   16,332   14,994  
Preopening expenses26   41   55   86  
Operating income1,929   1,463   5,435   4,737  
OTHER INCOME (EXPENSE)       
Interest expense(51)  (45)  (160)  (150) 
Interest income and other, net(9)  74   92   178  
INCOME BEFORE INCOME TAXES        1,869   1,492   5,367   4,765  
Provision for income taxes465   382   1,308   1,061  
Net income including noncontrolling interests1,404   1,110   4,059   3,704  
Net income attributable to noncontrolling interests(15)  (13)  (57)  (45) 
NET INCOME ATTRIBUTABLE TO COSTCO        $1,389   $1,097   $4,002   $3,659  
        
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
Basic$3.14   $2.49   $9.05   $8.32  
Diluted$3.13   $2.47   $9.02   $8.26  
        
Shares used in calculation (000’s):       
Basic442,843   439,727   442,297   439,755  
Diluted444,231   443,400   443,901   442,923  
        

 


 
COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
     
Subject to Reclassification    
   August 30,
2020
 September 1,
2019
ASSETS   
 CURRENT ASSETS    
 Cash and cash equivalents $12,277  $8,384 
 Short-term investments 1,028  1,060 
 Receivables, net 1,550  1,535 
 Merchandise inventories 12,242  11,395 
 Other current assets 1,023  1,111 
 Total current assets 28,120  23,485 
 OTHER ASSETS    
 Property and equipment, net 21,807  20,890 
 Operating lease right-of-use assets 2,788   
 Other long-term assets 2,841  1,025 
 TOTAL ASSETS $55,556  $45,400 
LIABILITIES AND EQUITY   
 CURRENT LIABILITIES    
 Accounts payable $14,172  $11,679 
 Accrued salaries and benefits 3,605  3,176 
 Accrued member rewards 1,393  1,180 
 Deferred membership fees 1,851  1,711 
 Current portion of long-term debt 95  1,699 
 Other current liabilities 3,728  3,792 
 Total current liabilities 24,844  23,237 
 OTHER LIABILITIES    
 Long-term debt, excluding current portion 7,514  5,124 
 Long-term operating lease liabilities 2,558   
 Other long-term liabilities 1,935  1,455 
 TOTAL LIABILITIES 36,851  29,816 
 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; 441,255,000 and 439,625,000 shares issued and outstanding 4  4 
 Additional paid-in capital 6,698  6,417 
 Accumulated other comprehensive loss (1,297) (1,436)
 Retained earnings 12,879  10,258 
 Total Costco stockholders’ equity 18,284  15,243 
 Noncontrolling interests 421  341 
 Total equity 18,705  15,584 
 TOTAL LIABILITIES AND EQUITY $55,556  $45,400 
          

Source: Costco Wholesale Corporation