Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2024
Costco Wholesale (Nasdaq: COST) reported its third-quarter and year-to-date results for fiscal 2024, ending May 12, 2024.
Net sales for Q3 increased by 9.1% to $57.39 billion, and for the first 36 weeks, they rose by 7.0% to $171.44 billion. Sales were positively influenced by a shift in the fiscal calendar, adding 0.5-1.0% for Q3.
Comparable sales for Q3 were up 6.6% overall, with U.S. sales up 6.2%, Canada 7.7%, and International 7.7%. E-commerce sales surged by 20.7%.
Net income for Q3 was $1.68 billion, or $3.78 per diluted share, compared to $1.30 billion, or $2.93 per diluted share, last year. For the first 36 weeks, net income was $5.01 billion, or $11.27 per diluted share, compared to $4.13 billion, or $9.30 per diluted share, last year.
Costco operates 878 warehouses globally and e-commerce sites in several countries. A conference call to discuss these results is scheduled for May 30, 2024, at 2:00 p.m. (PT).
- Q3 net sales increased by 9.1% to $57.39 billion.
- First 36 weeks sales increased by 7.0% to $171.44 billion.
- Comparable sales for Q3 rose by 6.6%.
- E-commerce sales surged by 20.7% in Q3.
- Net income for Q3 was $1.68 billion, a substantial increase from $1.30 billion last year.
- Net income for the first 36 weeks was $5.01 billion, up from $4.13 billion last year.
- EPS for Q3 was $3.78 per diluted share, up from $2.93 last year.
- EPS for the first 36 weeks was $11.27 per diluted share, compared to $9.30 last year.
- Costco operates 878 warehouses worldwide, indicating strong global presence.
- Positive impact on sales from fiscal calendar shift.
- Net sales increase partially attributed to fiscal calendar shift, not pure growth.
- Non-recurring charge affecting last year's lower net income skews comparison.
- Excluding gasoline prices and foreign exchange, comparable sales show modest growth.
Costco's third-quarter financial results offer a positive outlook for retail investors. The 9.1% increase in net sales to
The increase in net income to
Looking at the year-to-date figures, net sales rose by 7.0%, reaching
In summary, Costco's financial health appears robust, with significant growth in both sales and profitability. However, investors should remain aware of external factors, like fluctuating gasoline prices and foreign exchange rates, which can affect future results.
From a market research perspective, Costco's performance in the international markets is particularly compelling. Comparable sales growth in Canada and other international markets outpaced the U.S., with notable figures of 7.7% and 8.5% for the third quarter. This indicates strong global demand for Costco's product offerings and suggests that international expansion strategies are yielding positive results.
The e-commerce growth of 20.7% is another pivotal insight. This substantial increase shows Costco's success in adapting to the digital age, meeting consumer demand for online shopping options. This trend is likely to continue, driven by convenience and a broader product range available online.
Additionally, Costco's extensive warehouse network, with 878 locations worldwide, provides a robust distribution framework that supports its growth. The company's ability to manage and expand this network efficiently is important for sustaining competitive advantage.
Overall, Costco's market position remains strong both domestically and internationally, supported by effective strategies in physical and online retail spaces. This bodes well for its long-term growth prospects.
ISSAQUAH, Wash., May 30, 2024 (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 2024, ended May 12, 2024.
Net sales for the quarter increased 9.1 percent, to
The following comparable sales data reflect comparable locations year-over-year and comparable retail weeks.
Comparable sales for the third quarter and first 36 weeks of fiscal 2024 were as follows:
12 Weeks | 12 Weeks | 36 Weeks | 36 Weeks | ||||
Adjusted* | Adjusted* | ||||||
U.S. | |||||||
Canada | |||||||
Other International | |||||||
Total Company | |||||||
E-commerce |
*Excluding the impacts from changes in gasoline prices and foreign exchange.
Net income for the quarter was
Costco currently operates 878 warehouses, including 605 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, seven 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, May 30, 2024, and is available via a webcast on investor.costco.com (click on “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 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 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited) | |||||||||||||||
12 Weeks Ended | 36 Weeks Ended | ||||||||||||||
May 12, 2024 | May 7, 2023 | May 12, 2024 | May 7, 2023 | ||||||||||||
REVENUE | |||||||||||||||
Net sales | $ | 57,392 | $ | 52,604 | $ | 171,440 | $ | 160,280 | |||||||
Membership fees | 1,123 | 1,044 | 3,316 | 3,071 | |||||||||||
Total revenue | 58,515 | 53,648 | 174,756 | 163,351 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Merchandise costs | 51,173 | 47,175 | 152,770 | 143,367 | |||||||||||
Selling, general and administrative | 5,145 | 4,794 | 15,743 | 14,651 | |||||||||||
Operating income | 2,197 | 1,679 | 6,243 | 5,333 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Interest expense | (41 | ) | (36 | ) | (120 | ) | (104 | ) | |||||||
Interest income and other, net | 128 | 128 | 504 | 295 | |||||||||||
INCOME BEFORE INCOME TAXES | 2,284 | 1,771 | 6,627 | 5,524 | |||||||||||
Provision for income taxes | 603 | 469 | 1,614 | 1,392 | |||||||||||
NET INCOME | $ | 1,681 | $ | 1,302 | $ | 5,013 | $ | 4,132 | |||||||
NET INCOME PER COMMON SHARE: | |||||||||||||||
Basic | $ | 3.79 | $ | 2.94 | $ | 11.29 | $ | 9.31 | |||||||
Diluted | $ | 3.78 | $ | 2.93 | $ | 11.27 | $ | 9.30 | |||||||
Shares used in calculation (000s): | |||||||||||||||
Basic | 443,892 | 443,814 | 443,870 | 443,843 | |||||||||||
Diluted | 444,828 | 444,360 | 444,662 | 444,455 | |||||||||||
COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited) | |||||||
Subject to Reclassification | |||||||
May 12, 2024 | September 3, 2023 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 10,404 | $ | 13,700 | |||
Short-term investments | 1,095 | 1,534 | |||||
Receivables, net | 2,583 | 2,285 | |||||
Merchandise inventories | 17,430 | 16,651 | |||||
Other current assets | 1,776 | 1,709 | |||||
Total current assets | 33,288 | 35,879 | |||||
OTHER ASSETS | |||||||
Property and equipment, net | 28,062 | 26,684 | |||||
Operating lease right-of-use assets | 2,643 | 2,713 | |||||
Other long-term assets | 3,918 | 3,718 | |||||
TOTAL ASSETS | $ | 67,911 | $ | 68,994 | |||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 18,844 | $ | 17,483 | |||
Accrued salaries and benefits | 4,365 | 4,278 | |||||
Accrued member rewards | 2,339 | 2,150 | |||||
Deferred membership fees | 2,553 | 2,337 | |||||
Current portion of long-term debt | 1,077 | 1,081 | |||||
Other current liabilities | 6,183 | 6,254 | |||||
Total current liabilities | 35,361 | 33,583 | |||||
OTHER LIABILITIES | |||||||
Long-term debt, excluding current portion | 5,834 | 5,377 | |||||
Long-term operating lease liabilities | 2,386 | 2,426 | |||||
Other long-term liabilities | 2,559 | 2,550 | |||||
TOTAL LIABILITIES | 46,140 | 43,936 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
EQUITY | |||||||
Preferred stock | — | — | |||||
Common stock | 2 | 2 | |||||
Additional paid-in capital | 7,702 | 7,340 | |||||
Accumulated other comprehensive loss | (1,922 | ) | (1,805 | ) | |||
Retained earnings | 15,989 | 19,521 | |||||
TOTAL EQUITY | 21,771 | 25,058 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 67,911 | $ | 68,994 | |||
COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in millions) (unaudited) | |||||||
Subject to Reclassification | |||||||
36 Weeks Ended | |||||||
May 12, 2024 | May 7, 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 5,013 | $ | 4,132 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 1,531 | 1,389 | |||||
Non-cash lease expense | 220 | 300 | |||||
Stock-based compensation | 686 | 643 | |||||
Impairment of assets and other non-cash operating activities, net | (35 | ) | 441 | ||||
Changes in working capital | 966 | 438 | |||||
Net cash provided by operating activities | 8,381 | 7,343 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchases of short-term investments | (1,007 | ) | (947 | ) | |||
Maturities and sales of short-term investments | 1,441 | 594 | |||||
Additions to property and equipment | (3,133 | ) | (2,767 | ) | |||
Other investing activities, net | (7 | ) | (27 | ) | |||
Net cash used in investing activities | (2,706 | ) | (3,147 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Repayments of short-term borrowings | (637 | ) | (698 | ) | |||
Proceeds from short-term borrowings | 628 | 667 | |||||
Repayments of long-term debt | — | (75 | ) | ||||
Proceeds from issuance of long-term debt | 498 | — | |||||
Tax withholdings on stock-based awards | (313 | ) | (302 | ) | |||
Repurchases of common stock | (484 | ) | (446 | ) | |||
Cash dividend payments | (8,527 | ) | (799 | ) | |||
Financing lease payments | (112 | ) | (204 | ) | |||
Other financing activities, net | (1 | ) | (93 | ) | |||
Net cash used in financing activities | (8,948 | ) | (1,950 | ) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (23 | ) | 44 | ||||
Net change in cash and cash equivalents | (3,296 | ) | 2,290 | ||||
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR | 13,700 | 10,203 | |||||
CASH AND CASH EQUIVALENTS END OF YEAR | $ | 10,404 | $ | 12,493 | |||
![](https://ml.globenewswire.com/media/OTE4YTRhYTktMDVmOC00OTgxLWFkNWItYjY5NWZkZmU3N2IzLTEwMjAxNjM=/tiny/Costco-Wholesale-Corporation.png)
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