COST
$234.76
Costco Wholesale
$.84
.36%
Earnings Details
3rd Quarter May 2018
Thursday, May 31, 2018 4:15:00 PM
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Summary

Costco Wholesale Reports In-line

Costco Wholesale (COST) reported 3rd Quarter May 2018 earnings of $1.70 per share on revenue of $32.4 billion. The consensus earnings estimate was $1.68 per share on revenue of $31.7 billion. The Earnings Whisper number was $1.70 per share. Revenue grew 12.1% 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
$1.70
Earnings Whisper
$1.70
Consensus Estimate
$1.68
Reported Revenue
$32.36 Bil
Revenue Estimate
$31.74 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2018

ISSAQUAH, Wash., May 31, 2018 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq:COST) today announced its operating results for the third quarter (twelve weeks) and the thirty-six weeks ended May 13, 2018.

Net sales for the quarter increased 12.1 percent, to $31.62 billion, from $28.22 billion last year. Net sales for the first thirty-six weeks of fiscal 2018 increased 12.0 percent, to $95.02 billion, from $84.82 billion last year.

Comparable sales for the third quarter and the thirty-six weeks were as follows:

  
   12 Weeks 12 Weeks 36 Weeks 36 Weeks 
                                 w/o gas inflation & FX    w/o gas inflation & FX  
 U.S. 9.7% 7.7% 9.0% 7.3% 
 Canada 11.3% 4.8% 10.4% 3.8% 
 Other International 11.8% 5.8% 12.6% 7.1% 
           
 Total Company 10.2% 7.0% 9.7% 6.8% 
           
 E-commerce 36.8% 35.5% 36.1% 34.8% 
  

Net income for the quarter was $750 million, or $1.70 per diluted share, compared to $700 million, or $1.59 per diluted share, last year. Net income last year was positively impacted by an $82 million ($0.19 per diluted share) tax benefit in connection with the $7.00 per share special cash dividend declared in the third quarter of last year. Net income for the first thirty-six weeks of fiscal year 2018 was $2.09 billion, or $4.74 per diluted share, compared to $1.76 billion, or $3.99 per diluted share, last year.

Costco currently operates 750 warehouses, including 520 in the United States and Puerto Rico, 98 in Canada, 38 in Mexico, 28 in the United Kingdom, 26 in Japan, 14 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in Iceland, and one in France. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea, and Taiwan.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, May 31, 2018, and is available 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.  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), 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


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

    
 12 Weeks Ended 36 Weeks Ended
 May 13, 2018 May 7, 2017 May 13, 2018 May 7, 2017
REVENUE       
Net sales$31,624  $28,216  $95,020  $84,815 
Membership fees737  644  2,145  1,910 
Total revenue32,361  28,860  97,165  86,725 
OPERATING EXPENSES       
Merchandise costs28,131  24,970  84,481  75,185 
Selling, general and administrative3,155  2,907  9,613  8,827 
Preopening expenses8  15  37  52 
Operating income1,067  968  3,034  2,661 
OTHER INCOME (EXPENSE)       
Interest expense(37) (21) (111) (81)
Interest income and other, net41  18  70  40 
INCOME BEFORE INCOME TAXES1,071  965  2,993  2,620 
Provision for income taxes309  259  867  838 
Net income including noncontrolling interests762  706  2,126  1,782 
Net income attributable to noncontrolling interests(12) (6) (35) (22)
NET INCOME ATTRIBUTABLE TO COSTCO$750  $700  $2,091  $1,760 
        
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO
COSTCO:
       
Basic$1.71  $1.59  $4.77  $4.01 
Diluted$1.70  $1.59  $4.74  $3.99 
        
Shares used in calculation (000’s):       
Basic438,740  438,817  438,576  438,650 
Diluted441,715  441,056  441,383  440,745 
        
        
CASH DIVIDENDS DECLARED PER COMMON SHARE$0.57  $7.50  $1.57  $8.40 
                



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

Subject to Reclassifications

   May 13, 2018 September 3, 2017
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$5,877  $4,546 
Short-term investments1,167  1,233 
Receivables, net1,593  1,432 
Merchandise inventories10,626  9,834 
Other current assets430  272 
Total current assets19,693  17,317 
PROPERTY AND EQUIPMENT   
Land6,093  5,690 
Buildings and improvements15,786  15,127 
Equipment and fixtures7,161  6,681 
Construction in progress1,070  843 
 30,110  28,341 
Less accumulated depreciation and amortization(10,932) (10,180)
Net property and equipment19,178  18,161 
OTHER ASSETS734  869 
TOTAL ASSETS$39,605  $36,347 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$10,705  $9,608 
Accrued salaries and benefits2,697  2,703 
Accrued member rewards1,041  961 
Deferred membership fees1,679  1,498 
Other current liabilities3,289  2,725 
Total current liabilities19,411  17,495 
LONG-TERM DEBT, excluding current portion6,492  6,573 
OTHER LIABILITIES1,255  1,200 
Total liabilities27,158  25,268 
COMMITMENTS AND CONTINGENCIES   
EQUITY   
Preferred stock $.01 par value; 100,000,000 shares authorized; no shares issued and outstanding   
Common stock $.01 par value; 900,000,000 shares authorized; 438,602,000 and 437,204,000
shares issued and outstanding
4  4 
Additional paid-in capital6,001  5,800 
Accumulated other comprehensive loss(1,038) (1,014)
Retained earnings7,176  5,988 
Total Costco stockholders’ equity12,143  10,778 
Noncontrolling interests304  301 
Total equity12,447  11,079 
TOTAL LIABILITIES AND EQUITY$39,605  $36,347 
 

Source: Costco Wholesale Corporation