Welcome!

News Feed Item

Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2014

ISSAQUAH, WA -- (Marketwired) -- 05/29/14 -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the third quarter (twelve weeks) and the first thirty-six-weeks of fiscal 2014, ended May 11, 2014. Net sales for the quarter increased seven percent, to $25.23 billion, from $23.55 billion last year. Net sales for the first thirty-six weeks increased six percent, to $75.46 billion, from $71.10 billion last year.

Comparable sales were as follows:



                                     12 Weeks 36 Weeks
                                     -------- --------
                      U.S.              5%       4%
                      International     3%       1%

                      Total             4%       3%
                                     ======== ========


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



                                     12 Weeks 36 Weeks
                                     -------- --------
                      U.S.              6%       5%
                      International     8%       7%

                      Total             6%       5%
                                     ======== ========


Net income for the quarter was $473 million, or $1.07 per diluted share, compared to $459 million, or $1.04 per diluted share, last year. Net income for the first thirty-six weeks was $1.36 billion, or $3.07 per diluted share, compared to $1.42 billion, or $3.23 per diluted share, last year. Net income for the thirty-six week period last year was positively impacted by a second quarter $62 million ($.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid in December 2012 to the Company 401(k) plan participants.

Costco currently operates 655 warehouses, including 464 in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 19 in Japan, 10 in Taiwan, 10 in Korea, six in Australia, and one in Spain. The Company plans to open up to an additional eight 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 third quarter operating results is scheduled for 8:00 a.m. (PT) today, May 29, 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        36 Weeks Ended
                                 --------------------  --------------------
                                  May 11,    May 12,    May 11,    May 12,
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
REVENUE
  Net sales                      $  25,233  $  23,552  $  75,457  $  71,099
  Membership fees                      561        531      1,660      1,570
                                 ---------  ---------  ---------  ---------
    Total revenue                   25,794     24,083     77,117     72,669
OPERATING EXPENSES
  Merchandise costs                 22,554     21,038     67,421     63,530
  Selling, general and
   administrative                    2,487      2,313      7,519      7,006
  Preopening expenses                   16         10         48         34
                                 ---------  ---------  ---------  ---------
    Operating income                   737        722      2,129      2,099
OTHER INCOME (EXPENSE)
  Interest expense                     (25)       (25)       (78)       (63)
  Interest income and other, net        12         15         60         61
                                 ---------  ---------  ---------  ---------
INCOME BEFORE INCOME TAXES             724        712      2,111      2,097
  Provision for income taxes           245        248        728        658
                                 ---------  ---------  ---------  ---------
Net income including
 noncontrolling interests              479        464      1,383      1,439
Net income attributable to
 noncontrolling interests               (6)        (5)       (22)       (17)
                                 ---------  ---------  ---------  ---------
NET INCOME ATTRIBUTABLE TO
 COSTCO                          $     473  $     459  $   1,361  $   1,422
                                 =========  =========  =========  =========

NET INCOME PER COMMON SHARE
 ATTRIBUTABLE TO COSTCO:
  Basic                          $    1.08  $    1.05  $    3.10  $    3.27
                                 =========  =========  =========  =========
  Diluted                        $    1.07  $    1.04  $    3.07  $    3.23
                                 =========  =========  =========  =========

Shares used in calculation
 (000's)
  Basic                            439,446    436,488    439,058    435,293
  Diluted                          442,720    440,780    442,651    439,738



Cash dividends declared per
 common share                    $   0.355  $    0.31  $   0.975  $    7.86



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


                                                  May 11,      September 1,
                                                    2014           2013
                                               -------------- --------------
                    ASSETS
Cash and cash equivalents                      $        5,736 $        4,644
Short-term investments                                  1,539          1,480
Receivables, net                                        1,115          1,201
Merchandise inventories                                 8,483          7,894
Deferred income taxes and other current assets            660            621
                                               -------------- --------------
  Total current assets                                 17,533         15,840
Property and equipment, net                            14,583         13,881
Other assets                                              585            562
                                               -------------- --------------
TOTAL ASSETS                                   $       32,701 $       30,283
                                               ============== ==============

            LIABILITIES AND EQUITY

Accounts payable                               $        8,361 $        7,872
Accrued salaries and benefits                           2,056          2,037
Other current liabilities                               2,973          2,181
Deferred membership fees                                1,297          1,167
                                               -------------- --------------
  Total current liabilities                            14,687         13,257
Long-term debt, excluding current portion               4,985          4,998
Deferred income taxes and other liabilities             1,008          1,016
                                               -------------- --------------
  Total liabilities                                    20,680         19,271
                                               -------------- --------------

Total Costco stockholders' equity                      11,819         10,833
Noncontrolling interests                                  202            179
                                               -------------- --------------
  Total equity                                         12,021         11,012
                                               -------------- --------------
TOTAL LIABILITIES AND EQUITY                   $       32,701 $       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
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Pentaho has announced orchestration capabilities that streamline the entire machine learning workflow and enable teams of data scientists, engineers and analysts to train, tune, test and deploy predictive models. Pentaho’s Data Integration and analytics platform ends the ‘gridlock’ associated with machine learning by enabling smooth team collaboration, maximizing limited data science resources and putting predictive models to work on big data faster – regardless of use case, industry, or languag...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Addteq will exhibit at SYS-CON's DevOps Summit at Cloud Expo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Addteq specializes in creating innovative solutions to solve business processes through the use of DevOps automation. Addteq was founded on the firm belief that automation is essential for successful software releases. Addteq's products and services are centered around the fundamental approach of understanding the pr...