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COST Costco Wholesale

Filed: 23 Sep 21, 4:30pm

Exhibit 99.1

 

 

 

Press Release

 

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COSTCO WHOLESALE CORPORATION REPORTS FOURTH QUARTER AND FISCAL

YEAR 2021 OPERATING RESULTS

ISSAQUAH, Wash., September 23, 2021 - 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 29, 2021.

Net sales for the quarter increased 17.5 percent, to $61.44 billion from $52.28 billion last year. Net sales for the fiscal year increased 17.7 percent, to $192.05 billion from $163.22 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.

   14.9  10.3  14.8  13.6

Canada

   19.5  6.7  20.0  12.1

Other International

   15.0  7.3  19.1  13.4

Total Company

   15.5  9.4  16.0  13.4
  

 

 

  

 

 

  

 

 

  

 

 

 

E-commerce

   11.2  8.9  44.4  42.6
  

 

 

  

 

 

  

 

 

  

 

 

 

 

*

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

Net income for the fourth quarter was $1.670 billion, or $3.76 per diluted share, compared to $1.389 billion, or $3.13 last year. This year’s fourth quarter was negatively impacted by a write-off of certain information technology assets of $84 million pre-tax ($0.14 per diluted share). Last 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, partially offset by an $84 million pretax benefit ($0.15 per diluted share) for the partial reversal of a reserve related to a product tax assessment taken in fiscal year 2019.

Net income for the fiscal year was $5.01 billion, or $11.27 per diluted share, compared to $4.00 billion, or $9.02 per diluted share in the prior year.

Costco currently operates 817 warehouses, including 565 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 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 23, 2021, 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,”


 

 

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“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), 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 impact, reduced shopping due to illness, travel restrictions or financial hardship, shifts in demand for products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures or operational limitations due to government mandates, or supply-chain disruptions, capacity constraints of third-party logistics suppliers, 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


 

 

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COSTCO WHOLESALE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

 

   16 Weeks Ended  52 Weeks Ended 
   August 29,
2021
  August 30,
2020
  August 29,
2021
  August 30,
2020
 

REVENUE

     

Net sales

  $61,441 $52,277 $192,052 $163,220

Membership fees

   1,234  1,106  3,877  3,541
  

 

 

  

 

 

  

 

 

  

 

 

 

Total revenue

   62,675  53,383  195,929  166,761

OPERATING EXPENSES

     

Merchandise costs

   54,733  46,401  170,684  144,939

Selling, general and administrative

   5,632  5,027  18,461  16,332

Preopening expenses

   35  26  76  55
  

 

 

  

 

 

  

 

 

  

 

 

 

Operating income

   2,275  1,929  6,708  5,435

OTHER INCOME (EXPENSE)

     

Interest expense

   (52  (51  (171  (160

Interest income and other, net

   68  (9  143  92
  

 

 

  

 

 

  

 

 

  

 

 

 

INCOME BEFORE INCOME TAXES

   2,291  1,869  6,680  5,367

Provision for income taxes

   597  465  1,601  1,308
  

 

 

  

 

 

  

 

 

  

 

 

 

Net income including noncontrolling interests

   1,694  1,404  5,079  4,059

Net income attributable to noncontrolling interests

   (24  (15  (72  (57
  

 

 

  

 

 

  

 

 

  

 

 

 

NET INCOME ATTRIBUTABLE TO COSTCO

  $1,670 $1,389 $5,007 $4,002
  

 

 

  

 

 

  

 

 

  

 

 

 

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:

     

Basic

  $3.77 $3.14 $11.30 $9.05
  

 

 

  

 

 

  

 

 

  

 

 

 

Diluted

  $3.76 $3.13 $11.27 $9.02
  

 

 

  

 

 

  

 

 

  

 

 

 

Shares used in calculation (000’s):

     

Basic

   443,193  442,843  443,089  442,297

Diluted

   444,369  444,231  444,346  443,901


 

 

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COSTCO WHOLESALE CORPORATION

CONSOLIDATED BALANCE SHEETS

(amounts in millions, except par value and share data)

(unaudited)

Subject to Reclassification

 

   August 29,
2021
  August 30,
2020
 

ASSETS

   

CURRENT ASSETS

   

Cash and cash equivalents

  $11,258 $12,277

Short-term investments

   917  1,028

Receivables, net

   1,803  1,550

Merchandise inventories

   14,215  12,242

Other current assets

   1,312  1,023
  

 

 

  

 

 

 

Total current assets

   29,505  28,120

OTHER ASSETS

   

Property and equipment, net

   23,492  21,807

Operating lease right-of-use assets

   2,890  2,788

Other long-term assets

   3,381  2,841
  

 

 

  

 

 

 

TOTAL ASSETS

  $59,268 $55,556
  

 

 

  

 

 

 

LIABILITIES AND EQUITY

   

CURRENT LIABILITIES

   

Accounts payable

  $16,278 $14,172

Accrued salaries and benefits

   4,090  3,605

Accrued member rewards

   1,671  1,393

Deferred membership fees

   2,042  1,851

Current portion of long-term debt

   799  95

Other current liabilities

   4,561  3,728
  

 

 

  

 

 

 

Total current liabilities

   29,441  24,844

OTHER LIABILITIES

   

Long-term debt, excluding current portion

   6,692  7,514

Long-term operating lease liabilities

   2,642  2,558

Other long-term liabilities

   2,415  1,935
  

 

 

  

 

 

 

TOTAL LIABILITIES

   41,190  36,851
  

 

 

  

 

 

 

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; 441,825,000 and 441,255,000 shares issued and outstanding

   4  4

Additional paid-in capital

   7,031  6,698

Accumulated other comprehensive loss

   (1,137  (1,297

Retained earnings

   11,666  12,879
  

 

 

  

 

 

 

Total Costco stockholders’ equity

   17,564  18,284

Noncontrolling interests

   514  421
  

 

 

  

 

 

 

TOTAL EQUITY

   18,078  18,705
  

 

 

  

 

 

 

TOTAL LIABILITIES AND EQUITY

  $59,268 $55,556