Welcome!

News Feed Item

Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2014 and February Sales Results

ISSAQUAH, WA -- (Marketwired) -- 03/06/14 -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the second quarter (twelve weeks) and first half (24 weeks) of fiscal 2014, ended February 16, 2014. Net sales for the quarter increased six percent, to $25.76 billion, from $24.34 billion last year. Net sales for the first half increased six percent, to $50.22 billion, from $47.55 billion last year.

Comparable sales for the twelve-week and twenty-four-week periods were as follows:

                                     12 Weeks 24 Weeks
                                     -------- --------
                      U.S.              4%       4%
                      International     0%       1%

                      Total             3%       3%
                                     ======== ========

Comparable sales for these periods, excluding negative impacts from gasoline price deflation and foreign exchange, were as follows:

                                     12 Weeks 24 Weeks
                                     -------- --------
                      U.S.              5%       5%
                      International     7%       7%

                      Total             5%       5%
                                     ======== ========

Net income for the quarter was $463 million, or $1.05 per diluted share, compared to $547 million, or $1.24 per diluted share, last year. Net income for the first half was $888 million, or $2.01 per diluted share, compared to $963 million, or $2.19 per diluted share, last year.

According to Richard Galanti, Chief Financial Officer of Costco, "Last year's net income was positively impacted by a $62 million ($0.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid by the Company in December 2012 to the Company 401(k) plan participants. Even with that distinction, however, the year-over-year comparison was unfavorable. Despite satisfactory sales results during the second fiscal quarter, several other factors led to lower earnings. These factors included: weaker sales and gross margin results in certain non-foods merchandise categories, particularly during the four-week holiday selling season; weaker gross margins in our fresh foods business; and lower reported international profits, resulting from the significant weakening of foreign exchange rates. The first four-week period of the quarter represented the majority of earnings underperformance in the quarter."

For the four-week reporting month of February ended March 2, 2014, the Company reported net sales of $7.90 billion, an increase of four percent from $7.58 billion during the similar four-week period last year. For the twenty-six week year-to-date period ended March 2, 2014, net sales were $54.22 billion, an increase of six percent from $51.35 billion during the similar twenty-six week period last year.

Comparable sales for the four-week and twenty-six-week periods ended March 2, 2014 were as follows:

                                      4 Weeks 26 Weeks
                                     -------- --------
                      U.S.              3%       4%
                      International     -1%      1%

                      Total             2%       3%
                                     ======== ========

Comparable sales for these periods, excluding the negative impacts from gasoline price deflation and foreign exchange, were as follows:

                                      4 Weeks 26 Weeks
                                     -------- --------
                      U.S.              4%       5%
                      International     5%       7%

                      Total             4%       5%
                                     ======== ========

Costco currently operates 649 warehouses, including 462 in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 18 in Japan, 10 in Taiwan, nine in Korea and five in Australia. The Company plans to open up to an additional fourteen new warehouses prior to the end of its fiscal year on August 31, 2014. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

A conference call to discuss these second quarter operating results and February sales results is scheduled for 8:00 a.m. (PT) today, March 6, 2014, 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. 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, 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, amounts expected to be spent on expansion plans, actions of vendors, rising costs associated with employees (including health care costs), energy, and certain commodities, geopolitical conditions and other risks identified from time to time in the Company's public statements and reports filed with the Securities and Exchange Commission.

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

                              12 Weeks Ended            24 Weeks Ended
                        ------------------------- -------------------------
                        February 16, February 17, February 16, February 17,
                            2014         2013         2014         2013
                        ------------ ------------ ------------ ------------
REVENUE
  Net sales             $     25,756 $     24,343 $     50,224 $     47,547
  Membership fees                550          528        1,099        1,039
                        ------------ ------------ ------------ ------------
    Total revenue             26,306       24,871       51,323       48,586
OPERATING EXPENSES
  Merchandise costs           23,043       21,766       44,867       42,492
  Selling, general and
   administrative              2,531        2,361        5,032        4,693
  Preopening expenses              8            6           32           24
                        ------------ ------------ ------------ ------------
    Operating income             724          738        1,392        1,377
OTHER INCOME (EXPENSE)
  Interest expense               (26)         (25)         (53)         (38)
  Interest income and
   other, net                     30           26           48           46
                        ------------ ------------ ------------ ------------
INCOME BEFORE INCOME
 TAXES                           728          739        1,387        1,385
  Provision for income
   taxes                         255          185          483          410
                        ------------ ------------ ------------ ------------
Net income including
 noncontrolling
 interests                       473          554          904          975
Net income attributable
 to noncontrolling
 interests                       (10)          (7)         (16)         (12)
                        ------------ ------------ ------------ ------------
NET INCOME ATTRIBUTABLE
 TO COSTCO              $        463 $        547 $        888 $        963
                        ============ ============ ============ ============

NET INCOME PER COMMON
 SHARE ATTRIBUTABLE TO
 COSTCO:
  Basic                 $       1.05 $       1.26 $       2.02 $       2.22
                        ============ ============ ============ ============
  Diluted               $       1.05 $       1.24 $       2.01 $       2.19
                        ============ ============ ============ ============

Shares used in
 calculation (000's)
  Basic                      439,776      435,975      438,868      434,698
  Diluted                    442,829      439,812      442,627      439,222



Cash dividends declared
 per common share       $       0.31 $      7.275 $       0.62 $      7.550


                        COSTCO WHOLESALE CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                            (dollars in millions)
                                 (unaudited)
Subject to Reclassifications

                                                 February 16,   September 1,
                                                      2014          2013
                                                 ------------- -------------
                     ASSETS
Cash and cash equivalents                        $       5,130 $       4,644
Short-term investments                                   1,352         1,480
Receivables, net                                         1,244         1,201
Merchandise inventories                                  8,267         7,894
Deferred income taxes and other current assets             641           621
                                                 ------------- -------------
  Total current assets                                  16,634        15,840
Property and equipment, net                             14,348        13,881
Other assets                                               584           562
                                                 ------------- -------------
TOTAL ASSETS                                     $      31,566 $      30,283
                                                 ============= =============

             LIABILITIES AND EQUITY

Accounts payable                                 $       7,707 $       7,872
Accrued salaries and benefits                            2,260         2,037
Other current liabilities                                2,647         2,181
Deferred membership fees                                 1,270         1,167
                                                 ------------- -------------
  Total current liabilities                             13,884        13,257
Long-term debt, excluding current portion                4,985         4,998
Deferred income taxes and other liabilities                988         1,016
                                                 ------------- -------------
  Total liabilities                                     19,857        19,271
                                                 ------------- -------------

Total Costco stockholders' equity                       11,515        10,833
Noncontrolling interests                                   194           179
                                                 ------------- -------------
  Total equity                                          11,709        11,012
                                                 ------------- -------------
TOTAL LIABILITIES AND EQUITY                     $      31,566 $      30,283
                                                 ============= =============

CONTACTS:
Costco Wholesale Corporation
Richard Galanti
425/313-8203
Bob Nelson
425/313-8255
Jeff Elliott
425/313-8264

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.