Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2021 Operating Results

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ISSAQUAH, Wash., Sept. 23, 2021 (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 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,” “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

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

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


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