Be valued,
We promote
from within.
Did You Know?
Costco Wholesale is a multi-billion
dollar global retailer with warehouse
club operations in eight countries.
We are the recognized leader in our
field, dedicated to quality in every
area of our business and respected
for our outstanding business ethics.
Despite our large size and explosive
international expansion, we
continue to provide a family
atmosphere in which our
employees thrive and succeed. We
are proud to have been named by
Washington CEO Magazine as one
of the top three companies to work
for in the state of Washington.
What Is Costco?
Costco is a membership warehouse
club, dedicated to bringing our
members the best possible prices
on quality brand-name merchandise.
With hundreds of locations world
-wide, Costco provides a wide
selection of merchandise, plus the
convenience of specialty
departments and exclusive member
services, all designed to make your
shopping experience a pleasurable
one.
The History of Costco
The company's first location, opened
in 1976 under the Price Club name,
was in a converted airplane hangar
on Morena Boulevard in San Diego.
Originally serving only small
businesses, the company found it
could achieve far greater buying
clout by also serving a selected
audience of non-business members.
With that change, the growth of the
warehouse club industry was off
and running. In 1983, the first
Costco warehouse location was
opened in Seattle. Costco became
the first company ever to grow from
zero to USD$3 billion in sales in less
than six years. When Costco and
Price Club merged in 1993, the
combined company, operating under
the name PriceCostco, had 206
locations generating $16 billion in
annual sales.
Our operating philosophy has been
simple. Keep costs down and pass
the savings on to our members. Our
large membership base and
tremendous buying power,
combined with our never-ending
quest for efficiency, result in the best
possible prices for our members.
Since resuming the Costco name in
1997, the company has grown world
-wide with total sales in recent fiscal
years exceeding $64 billion.
Costco has transformed the retail
world. When entrepreneur Sol Price
introduced a groundbreaking retail
concept in San Diego, California.
Price Club was the world's first
membership warehouse club, a place
where efficient buying and operating
practices gave members access to
unmatched savings.
At first, Price Club was limited
exclusively to business members,
who could purchase a wide range of
supplies and wholesale items. Jim
Sinegal, the executive vice-president
of merchandising, distribution and
marketing, was instrumental in fine-
tuning the merchandise and
marketing strategies, helping to turn
Price Club into a success story that
changed the face of retailing world
-wide.
Seven years later, Jim Sinegal channel
-ed his expertise into co-founding
Costco Wholesale with Jeff Brotman,
and together they opened the first
warehouse in Seattle, Washington in
1983.
Over the next decade, both Price Club
and Costco Wholesale continued to
innovate and grow, and in 1993, the
two mega-retailers merged, creating
a gifted leadership team that soon
made Costco the world's most
successful warehouse club.
Today, as the company evolves, it
stays true to the qualities that helped
attract and retain millions of loyal
members around the globe:
Commitment to quality. Costco ware-
houses carry about 4,000 SKUs (stock
keeping units) compared to the
30,000 found at most supermarkets.
By carefully choosing products based
on quality, price, brand, and features,
the company can offer the best value
to subscribed members.
Entrepreneurial spirit. Throughout the
decades, the entrepreneurial drive for
excellence has continued to define
Costco staff at every level. From its
management team to the people on
the warehouse floor, everyone is
united in a common goal to exceed
member expectations.
Employee focus. Costco is often
noted for being much more
employee-focused than other
Fortune 500 companies. By offering
fair wages and top-notch benefits,
the company has created a
workplace culture that attracts
positive, high-energy,
talented employees.
Costco Wholesale Corporation
Reports Fourth Quarter and Fiscal
Year 2023 Operating Results
Here
Sept. 26, 2023 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the 17-week fourth quarter and the 53-week fiscal year ended September 3, 2023.
Net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4 percent from $70.76 billion in the 16-week fourth quarter last year. Net sales for the 53-week fiscal year were $237.71 billion, an increase of 6.7 percent from $222.73 billion in the 52-week fiscal year of 2022.
Comparable sales were as follows:
| | | | | | | |
| 17 Weeks | | 17 Weeks | | 53 Weeks | | 53 Weeks |
| | | Adjusted* | | | | Adjusted* |
U.S. | 0.2% | | 3.1% | | 3.3% | | 4.2% |
Canada | 1.8% | | 7.4% | | 1.7% | | 8.1% |
Other International | 5.5% | | 4.4% | | 2.8% | | 7.6% |
| | | | | | | |
Total Company | 1.1% | | 3.8% | | 3.0% | | 5.2% |
| | | | | | | |
E-commerce | -0.8% | | -0.6% | | -5.7% | | -4.8% |
*Excluding the impacts from changes in gasoline prices and foreign exchange.
Net income for the 17-week fourth quarter was $2.160 billion, $4.86 per diluted share, compared to $1.868 billion, $4.20 per diluted share, in the 16-week fourth quarter last year.
Net income for the 53-week fiscal year was $6.292 billion, $14.16 per diluted share, compared to $5.844 billion, $13.14 per diluted share, in the 52-week prior year.
Costco currently operates 861 warehouses, including 591 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, five in China, four 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, 2023, and will be available via a webcast on investor.costco.com (click “Events & Presentations”).
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 and the Ukraine conflict), 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 GAAP.
CONTACTS: | Costco Wholesale Corporation |
| Richard Galanti, 425/313-8203 |
| David Sherwood, 425/313-8239 |
| Josh Dahmen, 425/313-8254 |
CO STCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
| 17 Weeks Ended | | 16 Weeks Ended | | 53 Weeks Ended | | 52 Weeks Ended |
| September 3, 2023 | | August 28, 2022 | | September 3, 2023 | | August 28, 2022 |
REVENUE | | | | | | | |
Net sales | $ | 77,430 | | | $ | 70,764 | | | $ | 237,710 | | | $ | 222,730 | |
Membership fees | | 1,509 | | | | 1,327 | | | | 4,580 | | | | 4,224 | |
Total revenue | | 78,939 | | | | 72,091 | | | | 242,290 | | | | 226,954 | |
OPERATING EXPENSES | | | | | | | |
Merchandise costs | | 69,219 | | | | 63,558 | | | | 212,586 | | | | 199,382 | |
Selling, general and administrative | | 6,939 | | | | 6,036 | | | | 21,590 | | | | 19,779 | |
Operating income | | 2,781 | | | | 2,497 | | | | 8,114 | | | | 7,793 | |
OTHER INCOME (EXPENSE) | | | | | | | |
Interest expense | | (56 | ) | | | (48 | ) | | | (160 | ) | | | (158 | ) |
Interest income and other, net | | 238 | | | | 67 | | | | 533 | | | | 205 | |
INCOME BEFORE INCOME TAXES | | 2,963 | | | | 2,516 | | | | 8,487 | | | | 7,840 | |
Provision for income taxes | | 803 | | | | 638 | | | | 2,195 | | | | 1,925 | |
Net income including noncontrolling interests | | 2,160 | | | | 1,878 | | | | 6,292 | | | | 5,915 | |
Net income attributable to noncontrolling interests | | — | | | | (10 | ) | | | — | | | | (71 | ) |
NET INCOME ATTRIBUTABLE TO COSTCO | $ | 2,160 | | | $ | 1,868 | | | $ | 6,292 | | | $ | 5,844 | |
| | | | | | | |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: | | | | | | | |
Basic | $ | 4.87 | | | $ | 4.21 | | | $ | 14.18 | | | $ | 13.17 | |
Diluted | $ | 4.86 | | | $ | 4.20 | | | $ | 14.16 | | | $ | 13.14 | |
| | | | | | | |
Shares used in calculation (000’s): | | | | | | | |
Basic | | 443,876 | | | | 443,839 | | | | 443,854 | | | | 443,651 | |
Diluted | | 444,445 | | | | 444,655 | | | | 444,452 | | | | 444,757 | |
| | | | | | | |
CO STCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
Subject to Reclassification
| | | September 3, 2023 | | August 28, 2022 |
ASSETS | | | |
CURRENT ASSETS | | | |
Cash and cash equivalents | $ | 13,700 | | | $ | 10,203 | |
Short-term investments | | 1,534 | | | | 846 | |
Receivables, net | | 2,285 | | | | 2,241 | |
Merchandise inventories | | 16,651 | | | | 17,907 | |
Other current assets | | 1,709 | | | | 1,499 | |
Total current assets | | 35,879 | | | | 32,696 | |
OTHER ASSETS | | | |
Property and equipment, net | | 26,684 | | | | 24,646 | |
Operating lease right-of-use assets | | 2,713 | | | | 2,774 | |
Other long-term assets | | 3,718 | | | | 4,050 | |
TOTAL ASSETS | $ | 68,994 | | | $ | 64,166 | |
LIABILITIES AND EQUITY | | | |
CURRENT LIABILITIES | | | |
Accounts payable | $ | 17,483 | | | $ | 17,848 | |
Accrued salaries and benefits | | 4,278 | | | | 4,381 | |
Accrued member rewards | | 2,150 | | | | 1,911 | |
Deferred membership fees | | 2,337 | | | | 2,174 | |
Current portion of long-term debt | | 1,081 | | | | 73 | |
Other current liabilities | | 6,254 | | | | 5,611 | |
Total current liabilities | | 33,583 | | | | 31,998 | |
OTHER LIABILITIES | | | |
Long-term debt, excluding current portion | | 5,377 | | | | 6,484 | |
Long-term operating lease liabilities | | 2,426 | | | | 2,482 | |
Other long-term liabilities | | 2,550 | | | | 2,555 | |
TOTAL LIABILITIES | | 43,936 | | | | 43,519 | |
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; 442,793,000 and 442,664,000 shares issued and outstanding | | 2 | | | | 2 | |
Additional paid-in capital | | 7,340 | | | | 6,884 | |
Accumulated other comprehensive loss | | (1,805 | ) | | | (1,829 | ) |
Retained earnings | | 19,521 | | | | 15,585 | |
Total Costco stockholders’ equity | | 25,058 | | | | 20,642 | |
Noncontrolling interests | | — | | | | 5 | |
TOTAL EQUITY | | 25,058 | | | | 20,647 | |
TOTAL LIABILITIES AND EQUITY | $ | 68,994 | | | $ | 64,166 | |
| | | | | | | |
CO STCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in millions)
(unaudited)
Subject to Reclassification
| 53 Weeks Ended | | 52 Weeks Ended |
| September 3, 2023 | | August 28, 2022 |
CASH FLOWS FROM OPERATING ACTIVITIES | | | |
Net income including noncontrolling interests | $ | 6,292 | | | $ | 5,915 | |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | | | |
Depreciation and amortization | | 2,077 | | | | 1,900 | |
Non-cash lease expense | | 412 | | | | 377 | |
Stock-based compensation | | 774 | | | | 724 | |
Other non-cash operating activities, net | | 495 | | | | 39 | |
Changes in working capital | | 1,018 | | | | (1,563 | ) |
Net cash provided by operating activities | | 11,068 | | | | 7,392 | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | |
Purchases of short-term investments | | (1,622 | ) | | | (1,121 | ) |
Maturities and sales of short-term investments | | 937 | | | | 1,145 | |
Additions to property and equipment | | (4,323 | ) | | | (3,891 | ) |
Other investing activities, net | | 36 | | | | (48 | ) |
Net cash used in investing activities | | (4,972 | ) | | | (3,915 | ) |
CASH FLOWS FROM FINANCING ACTIVITIES | | | |
Repayments of short-term borrowings | | (935 | ) | | | (6 | ) |
Proceeds from short-term borrowings | | 917 | | | | 53 | |
Repayments of long-term debt | | (75 | ) | | | (800 | ) |
Tax withholdings on stock-based awards | | (303 | ) | | | (363 | ) |
Repurchases of common stock | | (676 | ) | | | (439 | ) |
Cash dividend payments | | (1,251 | ) | | | (1,498 | ) |
Financing lease payments | | (291 | ) | | | (176 | ) |
Dividend to noncontrolling interest | | — | | | | (208 | ) |
Acquisition of noncontrolling interest | | — | | | | (842 | ) |
Other financing activities, net | | — | | | | (4 | ) |
Net cash used in financing activities | | (2,614 | ) | | | (4,283 | ) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | | 15 | | | | (249 | ) |
Net change in cash and cash equivalents | | 3,497 | | | | (1,055 | ) |
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR | | 10,203 | | | | 11,258 | |
CASH AND CASH EQUIVALENTS END OF YEAR | $ | 13,700 | | | $ | 10,203 |