ISSAQUAH, Wash., May 26, 2022 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the third quarter (twelve weeks) and the first 36 weeks of fiscal 2022, ended May 8, 2022.

Net sales for the quarter increased 16.3 percent, to $51.61 billion, from $44.38 billion last year. Net sales for the first 36 weeks increased 16.4 percent, to $151.97 billion, from $130.61 billion last year.

Comparable sales for the third quarter fiscal 2022 were as follows:

        
 12 Weeks 12 Weeks 36 Weeks 36 Weeks
   Adjusted*   Adjusted*
U.S.16.6% 10.7% 15.8% 10.7%
Canada15.2% 12.8% 16.1% 11.2%
Other International5.7% 9.1% 8.3% 9.6%
        
Total Company14.9% 10.8% 14.8% 10.6%
        
E-commerce7.4% 7.9% 11.4% 11.3%
        

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

Net income for the quarter was $1,353 million, $3.04 per diluted share, which included a one-time $77 million pretax charge, $0.13 per diluted share, for incremental benefits awarded under the new employee agreement effective March 14. Last year’s third quarter net income was $1,220 million, $2.75 per diluted share, which included $57 million pretax, $0.09 per diluted share, in COVID-19 related costs, primarily from $2 per hour premium pay. Net income for the first 36 weeks of fiscal 2022 was $3.98 billion, $8.94 per diluted share, compared to $3.34 billion, $7.51 per diluted share, last year.

Costco currently operates 830 warehouses, including 574 in the United States and Puerto Rico, 105 in Canada, 40 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 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, May 26, 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 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
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)

    
 12 Weeks Ended 36 Weeks Ended
 May 8, 2022 May 9, 2021 May 8, 2022 May 9, 2021
REVENUE       
Net sales$51,612  $44,376  $151,966  $130,611 
Membership fees 984   901   2,897   2,643 
Total revenue 52,596   45,277   154,863   133,254 
OPERATING EXPENSES       
Merchandise costs 46,355   39,415   135,824   115,951 
Selling, general and administrative 4,450   4,199   13,743   12,870 
Operating income 1,791   1,663   5,296   4,433 
OTHER INCOME (EXPENSE)       
Interest expense (35)  (40)  (110)  (119)
Interest income and other, net 71   27   138   75 
INCOME BEFORE INCOME TAXES 1,827   1,650   5,324   4,389 
Provision for income taxes 455   417   1,287   1,004 
Net income including noncontrolling interests 1,372   1,233   4,037   3,385 
Net income attributable to noncontrolling interests (19)  (13)  (61)  (48)
NET INCOME ATTRIBUTABLE TO COSTCO$1,353  $1,220  $3,976  $3,337 
        
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
Basic$3.05  $2.75  $8.96  $7.53 
Diluted$3.04  $2.75  $8.94  $7.51 
        
Shares used in calculation (000s):       
Basic 443,700   443,043   443,567   443,043 
Diluted 444,886   444,127   444,802   444,336 
        

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

Subject to Reclassification

    
 May 8, 2022 August 29, 2021
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$11,193  $11,258 
Short-term investments 638   917 
Receivables, net 1,991   1,803 
Merchandise inventories 17,623   14,215 
Other current assets 1,563   1,312 
Total current assets 33,008   29,505 
OTHER ASSETS   
Property and equipment, net 24,143   23,492 
Operating lease right-of-use assets 2,731   2,890 
Other long-term assets 3,970   3,381 
TOTAL ASSETS$63,852  $59,268 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$17,651  $16,278 
Accrued salaries and benefits 4,090   4,090 
Accrued member rewards 1,828   1,671 
Deferred membership fees 2,251   2,042 
Current portion of long-term debt 77   799 
Other current liabilities 5,948   4,561 
Total current liabilities 31,845   29,441 
OTHER LIABILITIES   
Long-term debt, excluding current portion 6,507   6,692 
Long-term operating lease liabilities 2,452   2,642 
Other long-term liabilities 2,535   2,415 
TOTAL LIABILITIES 43,339   41,190 
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; 443,029,000 and 441,825,000 shares issued and outstanding 4   4 
Additional paid-in capital 7,272   7,031 
Accumulated other comprehensive loss (1,602)  (1,137)
Retained earnings 14,294   11,666 
Total Costco stockholders’ equity 19,968   17,564 
Noncontrolling interests 545   514 
TOTAL EQUITY 20,513   18,078 
TOTAL LIABILITIES AND EQUITY$63,852  $59,268