COST
$152.53
Costco Wholesale
($.62)
(.40%)
Earnings Details
3rd Quarter May 2016
Wednesday, May 25, 2016 9:00:12 PM
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Summary

Costco Wholesale (COST) Recent Earnings

Costco Wholesale (COST) reported 3rd Quarter May 2016 earnings of $1.24 per share on revenue of $26.8 billion. on revenue of $27.1 billion. Revenue grew 2.6% 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
$1.24
Earnings Whisper
$1.22
Consensus Estimate
Reported Revenue
$26.77 Bil
Revenue Estimate
$27.12 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 Year 2016

ISSAQUAH, WA--(Marketwired - May 25, 2016) - Costco Wholesale Corporation ("Costco" or the "Company") (COST) today announced its operating results for the third quarter (twelve weeks) and first thirty-six weeks of fiscal 2016, ended May 8, 2016.

Net sales for the quarter increased two percent, to $26.15 billion from $25.52 billion last year. Net sales for the first thirty-six weeks increased two percent, to $80.34 billion from $78.67 billion last year.

Comparable sales for the twelve-week and thirty-six-week periods were as follows:

 
   
   
 
  12 Weeks
  36 Weeks
 
           
U.S.
  0
%
  2
%
Canada
  1
%
  -5
%
Other International   -2
%
  -4
%
 
           
Total Company
  0
%
  0
%
 
           

Comparable sales for these periods excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:

 
   
   
 
  12 Weeks
  36 Weeks
 
           
U.S.
  3
%
  4
%
Canada
  8
%
  9
%
Other International   3
%
  5
%
 
           
Total Company
  3
%
  5
%
 
           

Net income for the quarter was $545 million, or $1.24 per diluted share, compared to $516 million, or $1.17 per diluted share, last year. Net income for the thirty-six weeks was $1.57 billion, or $3.56 per diluted share, compared to $1.61 billion, or $3.64 per diluted share, last year. Net income for the thirty-six-week period last year was positively impacted by $43 million ($0.10 per diluted share) in net nonrecurring income tax benefits.

Costco currently operates 705 warehouses, including 493 in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 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 fiscal 2016 third quarter operating results is scheduled for 8:00 a.m. (PT) on May 26, 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)
 
 
 
 
  12 Weeks Ended
    36 Weeks Ended
 
 
  May 8, 2016
    May 10, 2015
    May 8, 2016
    May 10, 2015
 
REVENUE
     
       
       
       
 
 
Net sales
  $
26,151
    $
25,517
    $
80,345
    $
78,673
 
 
Membership fees
    618
      584
      1,814
      1,748
 
 
 
Total revenue
    26,769
      26,101
      82,159
      80,421
 
OPERATING EXPENSES
     
       
       
       
 
 
Merchandise costs
    23,162
      22,687
      71,252
      69,969
 
 
Selling, general and administrative
    2,731
      2,579
      8,372
      7,946
 
 
Preopening expenses
    18
      14
      54
      38
 
 
 
Operating income
    858
      821
      2,481
      2,468
 
OTHER INCOME (EXPENSE)
     
       
       
       
 
 
Interest expense
    (30
)
    (31
)
    (94
)
    (84
)
 
Interest income and other, net
    7
      9
      51
      64
 
INCOME BEFORE INCOME TAXES
    835
      799
      2,438
      2,448
 
 
Provision for income taxes
    286
      280
      847
      817
 
 
Net income including noncontrolling interests
    549
      519
      1,591
      1,631
 
 
Net income attributable to noncontrolling interests     (4
)
    (3
)
    (20
)
    (21
)
NET INCOME ATTRIBUTABLE TO COSTCO
  $
545
    $
516
    $
1,571
    $
1,610
 
 
     
       
       
       
 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
     
       
       
       
 
 
Basic
  $
1.24
    $
1.17
    $
3.58
    $
3.66
 
 
Diluted
  $
1.24
    $
1.17
    $
3.56
    $
3.64
 
 
     
       
       
       
 
 
Shares used in calculation: (000’s)
     
       
       
       
 
 
 
Basic
    438,815       440,070       438,930       439,733  
 
 
Diluted
    441,066       443,132       441,321       442,721  
 
     
       
       
       
 
 
     
       
       
       
 
 
     
       
       
       
 
Cash dividends declared per common share
  $
0.45
    $
0.40
    $
1.25
    $
6.11
 
 
     
       
       
       
 
 
     
       
       
       
 
 
     
       
       
       
 
COSTCO WHOLESALE CORPORATION
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(amounts in millions, except par value and share data)
 
(unaudited)
 
 
 
Subject to Reclassifications
 
 
  May 8,
    August 30,
 
 2016
 2015
ASSETS
   
     
 
CURRENT ASSETS
               
 
Cash and cash equivalents
  $
4,884
    $
4,801
 
 
Short-term investments
    1,137
      1,618
 
 
Receivables, net
    1,300
      1,224
 
 
Merchandise inventories
    8,927
      8,908
 
 
Other current assets
    294
      228
 
 
 
Total current assets
    16,542       16,779  
PROPERTY AND EQUIPMENT
               
 
Land
    5,266
      4,961
 
 
Buildings and improvements
    13,645       12,618  
 
Equipment and fixtures
    5,834
      5,274
 
 
Construction in progress
    707
      811
 
 
 
    25,452       23,664  
 
Less accumulated depreciation and amortization
    (8,961 )
    (8,263 )
 
 
Net property and equipment
    16,491       15,401  
OTHER ASSETS
    840
      837
 
 
 
TOTAL ASSETS
  $
33,873     $
33,017  
LIABILITIES AND EQUITY
               
CURRENT LIABILITIES
               
 
Accounts payable
  $
8,828
    $
9,011
 
 
Current portion of long-term debt
    1,193
      1,283
 
 
Accrued salaries and benefits
    2,398
      2,468
 
 
Accrued member rewards
    861
      813
 
 
Deferred membership fees
    1,416
      1,269
 
 
Other current liabilities
    2,303
      1,695
 
 
 
Total current liabilities
    16,999       16,539  
LONG-TERM DEBT, excluding current portion
    3,921
      4,852
 
OTHER LIABILITIES
    1,205
      783
 
 
 
Total liabilities
    22,125       22,174  
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; 438,368,000 and 437,952,000 shares issued and outstanding
    2
      2
 
 
Additional paid-in capital
    5,404
      5,218
 
 
Accumulated other comprehensive loss
    (1,126 )
    (1,121 )
 
Retained earnings
    7,225
      6,518
 
 
 
Total Costco stockholders’ equity
    11,505       10,617  
 
Noncontrolling interests
    243
      226
 
 
 
Total equity
    11,748       10,843  
 
 
TOTAL LIABILITIES AND EQUITY
  $
33,873     $
33,017  
 
 
 
               

CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264