Costco Wholesale Corp 8-K, filed Sep 23, 2022
Costco Wholesale Corp (COST)
About this 8-K
Costco Wholesale Corp filed this 8-K on September 23, 2022, reporting on events of September 22, 2022.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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of the Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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| Item 2.02. | Results of Operations and Financial Condition |
On September 22, 2022, the Company issued a press release containing its operating results for the 16-week fourth quarter and the 52-week fiscal year, ended August 28, 2022. A copy of the press release is included in Item 9.01.
| Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits. The following exhibit is included in this report:
| 99.1. | Press release dated September 22, 2022. | |
| 104 | Cover page Interactive data file (embedded within the inline XBRL document) | |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized, on September 23, 2022.
| COSTCO WHOLESALE CORPORATION | ||
| By: | /s/ Richard A. Galanti | |
| Richard A. Galanti | ||
| Executive Vice President and Chief Financial Officer | ||
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Exhibit 99.1
| Press Release |
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COSTCO WHOLESALE CORPORATION REPORTS FOURTH QUARTER AND FISCAL
YEAR 2022 OPERATING RESULTS
ISSAQUAH, Wash., September 22, 2022 - 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 28, 2022.
Net sales for the quarter increased 15.2 percent, to $70.76 billion, from $61.44 billion last year. Net sales for the fiscal year increased 16.0 percent, to $222.73 billion, from $192.05 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. |
15.8 | % | 9.6 | % | 15.8 | % | 10.4 | % | ||||||||
| Canada |
13.4 | % | 13.7 | % | 15.2 | % | 12.1 | % | ||||||||
| Other International |
2.9 | % | 11.3 | % | 6.6 | % | 10.2 | % | ||||||||
| Total Company |
13.7 | % | 10.4 | % | 14.4 | % | 10.6 | % | ||||||||
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| E-commerce |
7.1 | % | 8.4 | % | 10.1 | % | 10.4 | % | ||||||||
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| * | Excluding the impacts from changes in gasoline prices and foreign exchange. |
Net income for the fourth quarter was $1.868 billion, $4.20 per diluted share, compared to $1.670 billion, $3.76 per diluted share last year. Last year’s fourth quarter was negatively impacted by a write-off of information technology assets of $84 million pre-tax ($0.14 per diluted share).
Net income for the fiscal year was $5.84 billion, $13.14 per diluted share, compared to $5.01 billion, $11.27 per diluted share, in the prior year.
Costco currently operates 838 warehouses, including 578 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 17 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. 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 22, 2022, 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
| Press Release |
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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 and the Ukraine conflict), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, and 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 |
| Press Release |
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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 28, 2022 |
August 29, 2021 |
August 28, 2022 |
August 29, 2021 |
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| REVENUE |
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| Net sales |
$ | 70,764 | $ | 61,441 | $ | 222,730 | $ | 192,052 | ||||||||
| Membership fees |
1,327 | 1,234 | 4,224 | 3,877 | ||||||||||||
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| Total revenue |
72,091 | 62,675 | 226,954 | 195,929 | ||||||||||||
| OPERATING EXPENSES |
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| Merchandise costs |
63,558 | 54,733 | 199,382 | 170,684 | ||||||||||||
| Selling, general and administrative |
6,036 | 5,667 | 19,779 | 18,537 | ||||||||||||
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| Operating income |
2,497 | 2,275 | 7,793 | 6,708 | ||||||||||||
| OTHER INCOME (EXPENSE) |
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| Interest expense |
(48 | ) | (52 | ) | (158 | ) | (171 | ) | ||||||||
| Interest income and other, net |
67 | 68 | 205 | 143 | ||||||||||||
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| INCOME BEFORE INCOME TAXES |
2,516 | 2,291 | 7,840 | 6,680 | ||||||||||||
| Provision for income taxes |
638 | 597 | 1,925 | 1,601 | ||||||||||||
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| Net income including noncontrolling interests |
1,878 | 1,694 | 5,915 | 5,079 | ||||||||||||
| Net income attributable to noncontrolling interests |
(10 | ) | (24 | ) | (71 | ) | (72 | ) | ||||||||
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| NET INCOME ATTRIBUTABLE TO COSTCO |
$ | 1,868 | $ | 1,670 | $ | 5,844 | $ | 5,007 | ||||||||
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| NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: |
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| Basic |
$ | 4.21 | $ | 3.77 | $ | 13.17 | $ | 11.30 | ||||||||
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| Diluted |
$ | 4.20 | $ | 3.76 | $ | 13.14 | $ | 11.27 | ||||||||
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| Shares used in calculation (000’s): |
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| Basic |
443,839 | 443,193 | 443,651 | 443,089 | ||||||||||||
| Diluted |
444,655 | 444,369 | 444,757 | 444,346 | ||||||||||||
| Press Release |
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COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
Subject to Reclassification
| August 28, 2022 |
August 29, 2021 |
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| ASSETS | ||||||||
| CURRENT ASSETS |
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| Cash and cash equivalents |
$ | 10,203 | $ | 11,258 | ||||
| Short-term investments |
846 | 917 | ||||||
| Receivables, net |
2,241 | 1,803 | ||||||
| Merchandise inventories |
17,907 | 14,215 | ||||||
| Other current assets |
1,499 | 1,312 | ||||||
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| Total current assets |
32,696 | 29,505 | ||||||
| OTHER ASSETS |
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| Property and equipment, net |
24,646 | 23,492 | ||||||
| Operating lease right-of-use assets |
2,774 | 2,890 | ||||||
| Other long-term assets |
4,050 | 3,381 | ||||||
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| TOTAL ASSETS |
$ | 64,166 | $ | 59,268 | ||||
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| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES |
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| Accounts payable |
$ | 17,848 | $ | 16,278 | ||||
| Accrued salaries and benefits |
4,381 | 4,090 | ||||||
| Accrued member rewards |
1,911 | 1,671 | ||||||
| Deferred membership fees |
2,174 | 2,042 | ||||||
| Current portion of long-term debt |
73 | 799 | ||||||
| Other current liabilities |
5,611 | 4,561 | ||||||
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| Total current liabilities |
31,998 | 29,441 | ||||||
| OTHER LIABILITIES |
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| Long-term debt, excluding current portion |
6,484 | 6,692 | ||||||
| Long-term operating lease liabilities |
2,482 | 2,642 | ||||||
| Other long-term liabilities |
2,555 | 2,415 | ||||||
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| TOTAL LIABILITIES |
43,519 | 41,190 | ||||||
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| COMMITMENTS AND CONTINGENCIES |
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| EQUITY |
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| Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding |
— | — | ||||||
| Common stock $0.005 par value; 900,000,000 shares authorized; 442,664,000 and 441,825,000 shares issued and outstanding |
2 | 4 | ||||||
| Additional paid-in capital |
6,884 | 7,031 | ||||||
| Accumulated other comprehensive loss |
(1,829 | ) | (1,137 | ) | ||||
| Retained earnings |
15,585 | 11,666 | ||||||
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| Total Costco stockholders’ equity |
20,642 | 17,564 | ||||||
| Noncontrolling interests |
5 | 514 | ||||||
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| TOTAL EQUITY |
20,647 | 18,078 | ||||||
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| TOTAL LIABILITIES AND EQUITY |
$ | 64,166 | $ | 59,268 | ||||
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