Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2024 Operating Results

Source: GlobeNewswire
Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2024 Operating Results

ISSAQUAH, Wash., Sept. 26, 2024 (GLOBE NEWSWIRE) -- 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 September 1, 2024.

For the 16-week fourth quarter, the Company reported net sales of $78.2 billion, an increase of 1.0 percent compared to net sales of $77.4 billion in the 17-week fourth quarter of fiscal year 2023. For the 52-week fiscal year, the Company reported net sales of $249.6 billion, an increase of 5.0 percent from $237.7 billion reported in the 53-week fiscal year 2023.

The following comparable sales data reflect comparable locations year-over-year and comparable retail weeks.

Comparable sales were as follows:

 16 Weeks 16 Weeks 52 Weeks 52 Weeks
   Adjusted*   Adjusted*
U.S.5.3% 6.3% 4.5% 5.0%
Canada5.5% 7.9% 7.0% 8.1%
Other International5.7% 9.3% 8.1% 8.4%
        
Total Company5.4% 6.9% 5.3% 5.9%
        
E-commerce18.9% 19.5% 16.1% 16.2%

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

Net income for the 16-week fourth quarter was $2.354 billion, $5.29 per diluted share, compared to $2.160 billion, $4.86 per diluted share, in the 17-week fourth quarter last year. This year’s results included a net non-recurring tax benefit of $63 million, $0.14 per diluted share, related to a transfer pricing settlement, and true-ups of tax reserves.

Net income for the 52-week fiscal year was $7.367 billion, $16.56 per diluted share, compared to $6.292 billion, $14.16 per diluted share, in the 53-week prior year.

Costco currently operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, September 26, 2024, and will be available via a webcast on investor.costco.com (click “Events & Presentations”).

Certain statements contained in this document and the pre-recorded message 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 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 and wages), energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, public-health related factors, 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. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS:Costco Wholesale Corporation
 David Sherwood, 425/313-8239
 Josh Dahmen, 425/313-8254
 Andrew Yoon, 425/313-6305
  

COST-Earn

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

 16 Weeks Ended 17 Weeks Ended 52 Weeks Ended 53 Weeks Ended
 September 1, 2024 September 3, 2023 September 1, 2024 September 3, 2023
REVENUE       
Net sales$78,185  $77,430  $249,625  $237,710 
Membership fees 1,512   1,509   4,828   4,580 
Total revenue 79,697   78,939   254,453   242,290 
OPERATING EXPENSES       
Merchandise costs 69,588   69,219   222,358   212,586 
Selling, general and administrative 7,067   6,939   22,810   21,590 
Operating income 3,042   2,781   9,285   8,114 
OTHER INCOME (EXPENSE)       
Interest expense (49)  (56)  (169)  (160)
Interest income and other, net 120   238   624   533 
INCOME BEFORE INCOME TAXES 3,113   2,963   9,740   8,487 
Provision for income taxes 759   803   2,373   2,195 
NET INCOME$2,354  $2,160  $7,367  $6,292 
        
NET INCOME PER COMMON SHARE:       
Basic$5.30  $4.87  $16.59  $14.18 
Diluted$5.29  $4.86  $16.56  $14.16 
        
Shares used in calculation (000’s):       
Basic 444,013   443,876   443,914   443,854 
Diluted 444,977   444,445   444,759   444,452 
        


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

Subject to Reclassification

   September 1,
2024
 September 3,
2023
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents        $9,906  $13,700 
Short-term investments         1,238   1,534 
Receivables, net         2,721   2,285 
Merchandise inventories         18,647   16,651 
Other current assets         1,734   1,709 
Total current assets         34,246   35,879 
OTHER ASSETS   
Property and equipment, net         29,032   26,684 
Operating lease right-of-use assets         2,617   2,713 
Other long-term assets         3,936   3,718 
TOTAL ASSETS        $69,831  $68,994 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable        $19,421  $17,483 
Accrued salaries and benefits         4,794   4,278 
Accrued member rewards         2,435   2,150 
Deferred membership fees         2,501   2,337 
Current portion of long-term debt         103   1,081 
Other current liabilities         6,210   6,254 
Total current liabilities         35,464   33,583 
OTHER LIABILITIES   
Long-term debt, excluding current portion         5,794   5,377 
Long-term operating lease liabilities         2,375   2,426 
Other long-term liabilities         2,576   2,550 
TOTAL LIABILITIES         46,209   43,936 
COMMITMENTS AND CONTINGENCIES   
EQUITY   
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; 443,126,000 and 442,793,000 shares issued and outstanding         2   2 
Additional paid-in capital         7,829   7,340 
Accumulated other comprehensive loss         (1,828)  (1,805)
Retained earnings         17,619   19,521 
TOTAL EQUITY         23,622   25,058 
TOTAL LIABILITIES AND EQUITY        $69,831  $68,994 
        

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (amounts in millions) (unaudited)

Subject to Reclassification

 52 Weeks Ended 53 Weeks Ended
 September 1,
2024
 September 3,
2023
CASH FLOWS FROM OPERATING ACTIVITIES   
Net income$7,367  $6,292 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization 2,237   2,077 
Non-cash lease expense 315   412 
Stock-based compensation 818   774 
Impairment of assets and other non-cash operating activities, net (9)  495 
Changes in working capital 611   1,018 
Net cash provided by operating activities 11,339   11,068 
CASH FLOWS FROM INVESTING ACTIVITIES   
Purchases of short-term investments (1,470)  (1,622)
Maturities and sales of short-term investments 1,790   937 
Additions to property and equipment (4,710)  (4,323)
Other investing activities, net (19)  36 
Net cash used in investing activities (4,409)  (4,972)
CASH FLOWS FROM FINANCING ACTIVITIES   
Repayments of short-term borrowings (920)  (935)
Proceeds from short-term borrowings 928   917 
Repayments of long-term debt (1,077)  (75)
Proceeds from issuance of long-term debt 498    
Tax withholdings on stock-based awards (315)  (303)
Repurchases of common stock (700)  (676)
Cash dividend payments (9,041)  (1,251)
Financing lease payments (136)  (291)
Other financing activities, net (1)   
Net cash used in financing activities (10,764)  (2,614)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 40   15 
Net change in cash and cash equivalents (3,794)  3,497 
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 13,700   10,203 
CASH AND CASH EQUIVALENTS END OF YEAR$9,906  $13,700