COST
$159.70
Costco Wholesale
$2.11
1.34%
Earnings Details
1st Quarter November 2016
Wednesday, December 07, 2016 4:15:18 PM
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Summary

Costco Wholesale Misses

Costco Wholesale (COST) reported 1st Quarter November 2016 earnings of $1.17 per share on revenue of $28.1 billion. The consensus earnings estimate was $1.19 per share on revenue of $28.5 billion. The Earnings Whisper number was $1.22 per share. Revenue grew 3.2% 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
$1.17
Earnings Whisper
$1.22
Consensus Estimate
$1.19
Reported Revenue
$28.10 Bil
Revenue Estimate
$28.46 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Costco Wholesale Corporation Reports First Quarter Fiscal Year 2017 Operating Results

ISSAQUAH, WA--(Marketwired - Dec 7, 2016) -  Costco Wholesale Corporation ("Costco" or the "Company") (COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2017, ended November 20, 2016.

Net sales for the first quarter were $27.47 billion, an increase of three percent, from $26.63 billion during the first quarter last year.

Comparable sales for the first quarter of fiscal 2017 were as follows:

  U.S.
1%
 
  Canada
4%
 
  Other International 0%
 
   
   
  Total Company
1%
 

Comparable sales for the quarter excluding the impacts from changes in gasoline prices and foreign exchange were as follows:

  U.S.
1%
 
  Canada
5%
 
  Other International 3%
 
   
   
  Total Company
2%
 

Net income for the quarter was $545 million, or $1.24 per diluted share, compared to $480 million, or $1.09 per diluted share, last year. This year’s first quarter benefited from a non-recurring $51 million ($.07 per diluted share after tax) legal settlement.

Costco currently operates 723 warehouses, including 506 in the United States and Puerto Rico, 94 in Canada, 36 in Mexico, 28 in the United Kingdom, 25 in Japan, 12 in Korea, 12 in Taiwan, eight in Australia and two in Spain. Costco also operates electronic 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, December 7, 2016, 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. 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 (including health care costs), energy and certain commodities, geopolitical conditions, 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 we do not undertake to update these statements, except as required by law.

 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
 
 
     
       
     
 
    November 20, 2016       November 22, 2015      
REVENUE
     
       
     
 
Net sales
  $
27,469
    $
26,627
     
 
Membership fees
    630
      593
     
 
 
Total revenue
    28,099
      27,220
     
OPERATING EXPENSES
     
       
     
 
Merchandise costs
    24,288
      23,621
     
 
Selling, general and administrative     2,940
      2,806
     
 
Preopening expenses
    22
      26
     
 
 
Operating income
    849
      767
     
OTHER INCOME (EXPENSE)
     
       
     
 
Interest expense
    (29
)
    (33
)
   
 
Interest income and other, net
    26
      28
     
INCOME BEFORE INCOME TAXES
    846
      762
     
Provision for income taxes
    291
      275
     
Net income including noncontrolling interests
    555
      487
     
Net income attributable to noncontrolling interests
    (10
)
    (7
)
   
NET INCOME ATTRIBUTABLE TO COSTCO
  $
545
    $
480
     
 
     
       
     
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
     
       
     
Basic
  $
1.24
    $
1.10
     
Diluted
  $
1.24
    $
1.09
     
 
     
       
     
Shares used in calculation: (000’s)
     
       
     
 
Basic
    438,007
      438,342
     
 
Diluted
    440,525
      441,386
     
 
     
       
     
 
     
       
     
 
     
       
     
Cash dividends declared per common share
  $
0.45
    $
0.40
     
 
     
       
     
 
     
       
     
 
     
       
     
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 (amounts in millions, except par value and share data)
(unaudited)
 

Subject to Reclassifications

 
November 20, 2016
  August 28,
 2015
 2016
ASSETS
   
     
CURRENT ASSETS
   
     
 
Cash and cash equivalents
$
4,805
  $
  3,379
 
 
Short-term investments
  1,311
      1,350
 
 
Receivables, net
  1,498
      1,252
 
 
Merchandise inventories
  10,721       8,969
 
 
Other current assets
  235
      268
 
 
 
Total current assets
  18,570       15,218  
PROPERTY AND EQUIPMENT
   
     
 
Land
  5,389
      5,395
 
 
Buildings and improvements
  14,060       13,994  
 
Equipment and fixtures
  6,173
      6,077
 
 
Construction in progress
  816
      701
 
 
  26,438       26,167  
 
Less accumulated depreciation and amortization
  (9,282 )
    (9,124 )
 
 
Net property and equipment
  17,156       17,043  
OTHER ASSETS
  806
      902
 
 
TOTAL ASSETS
$
36,532     $
33,163  
LIABILITIES AND EQUITY
   
     
CURRENT LIABILITIES
   
     
 
Accounts payable
$
11,003     $
7,612
 
 
Current portion long-term debt
  1,159
      1,100
 
 
Accrued salaries and benefits
  2,534
      2,629
 
 
Accrued member rewards
  862
      869
 
 
Deferred membership fees
  1,414
      1,362
 
 
Other current liabilities
  2,189
      2,003
 
 
 
Total current liabilities
  19,161       15,575  
LONG-TERM DEBT, excluding current portion
  3,933
      4,061
 
OTHER LIABILITIES
  1,207
      1,195
 
 
 
Total liabilities
  24,301       20,831  
COMMITMENTS AND CONTINGENCIES
   
     
EQUITY
   
     
 
Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding
  0
      0
 
 
Common stock $.005 par value; 900,000,000 shares authorized; 439,343,000 and 437,524,000 shares issued and outstanding
  2
      2
 
 
Additional paid-in capital
  5,528
      5,490
 
 
Accumulated other comprehensive loss
  (1,439 )
    (1,099 )
 
Retained earnings
  7,882
      7,686
 
 
Total Costco stockholders’ equity
  11,973       12,079  
 
Noncontrolling interests
  258
      253
 
 
 
Total equity
  12,231       12,332  
 
 
TOTAL LIABILITIES AND EQUITY
$
36,532     $
33,163  

CONTACTS: Costco Wholesale Corporation Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264 David Sherwood 425/313-8239