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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2021 Operating Results

September 23, 2021 GMT

ISSAQUAH, Wash., Sept. 23, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the 16-week fourth quarter and the 52-week fiscal year, ended August 29, 2021.

Net sales for the quarter increased 17.5 percent, to $61.44 billion from $52.28 billion last year. Net sales for the fiscal year increased 17.7 percent, to $192.05 billion from $163.22 billion last year.

Comparable sales for the fourth quarter and the fiscal year were as follows:

  16 Weeks 16 Weeks 52 Weeks 52 Weeks 
    Adjusted*   Adjusted* 
 U.S.14.9% 10.3% 14.8% 13.6% 
 Canada19.5% 6.7% 20.0% 12.1% 
 Other International15.0% 7.3% 19.1% 13.4% 
          
 Total Company15.5% 9.4% 16.0% 13.4% 
          
 E-commerce11.2% 8.9% 44.4% 42.6% 
          
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*Excluding the impacts from changes in gasoline prices and foreign exchange.

Net income for the fourth quarter was $1.670 billion, or $3.76 per diluted share, compared to $1.389 billion, or $3.13 last year. This year’s fourth quarter was negatively impacted by a write-off of certain information technology assets of $84 million pre-tax ($0.14 per diluted share). Last year’s fourth quarter was negatively impacted by incremental expense related to COVID-19 premium wages and sanitation costs of $281 million pretax ($0.47 per diluted share) and a $36 million pretax charge ($0.06 per diluted share) related to the prepayment of $1.5 billion of debt, partially offset by an $84 million pretax benefit ($0.15 per diluted share) for the partial reversal of a reserve related to a product tax assessment taken in fiscal year 2019.

Net income for the fiscal year was $5.01 billion, or $11.27 per diluted share, compared to $4.00 billion, or $9.02 per diluted share in the prior year.

Costco currently operates 817 warehouses, including 565 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, three in Spain, and one each in Iceland, France, and China. 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, September 23, 2021, 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), the ability to maintain effective internal control over financial reporting, 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
 Richard Galanti, 425/313-8203
 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)

 16 Weeks Ended 52 Weeks Ended
  August 29,
2021
  August 30,
2020
  August 29,
2021
  August 30,
2020
REVENUE               
Net sales$61,441  $52,277  $192,052  $163,220 
Membership fees1,234  1,106  3,877  3,541 
Total revenue62,675  53,383  195,929  166,761 
OPERATING EXPENSES               
Merchandise costs54,733  46,401  170,684  144,939 
Selling, general and administrative5,632  5,027  18,461  16,332 
Preopening expenses35  26  76  55 
Operating income2,275  1,929  6,708  5,435 
OTHER INCOME (EXPENSE)               
Interest expense(52) (51) (171) (160)
Interest income and other, net68  (9) 143  92 
INCOME BEFORE INCOME TAXES        2,291  1,869  6,680  5,367 
Provision for income taxes597  465  1,601  1,308 
Net income including noncontrolling interests1,694  1,404  5,079  4,059 
Net income attributable to noncontrolling interests(24) (15) (72) (57)
NET INCOME ATTRIBUTABLE TO COSTCO        $1,670  $1,389  $5,007  $4,002 
        
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:               
Basic$3.77  $3.14  $11.30  $9.05 
Diluted$3.76  $3.13  $11.27  $9.02 
        
Shares used in calculation (000’s):       
Basic443,193  442,843  443,089  442,297 
Diluted444,369  444,231  444,346  443,901 
        

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

Subject to Reclassification

    August 29,
2021
  August 30,
2020
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$11,258  $12,277 
Short-term investments917  1,028 
Receivables, net1,803  1,550 
Merchandise inventories14,215  12,242 
Other current assets1,312  1,023 
Total current assets29,505  28,120 
OTHER ASSETS   
Property and equipment, net23,492  21,807 
Operating lease right-of-use assets2,890  2,788 
Other long-term assets3,381  2,841 
TOTAL ASSETS        $59,268  $55,556 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$16,278  $14,172 
Accrued salaries and benefits4,090  3,605 
Accrued member rewards1,671  1,393 
Deferred membership fees2,042  1,851 
Current portion of long-term debt799  95 
Other current liabilities4,561  3,728 
Total current liabilities29,441  24,844 
OTHER LIABILITIES   
Long-term debt, excluding current portion6,692  7,514 
Long-term operating lease liabilities2,642  2,558 
Other long-term liabilities2,415  1,935 
TOTAL LIABILITIES        41,190  36,851 
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; 441,825,000 and 441,255,000 shares issued and outstanding4  4 
Additional paid-in capital7,031  6,698 
Accumulated other comprehensive loss(1,137) (1,297)
Retained earnings11,666  12,879 
Total Costco stockholders’ equity17,564  18,284 
Noncontrolling interests514  421 
TOTAL EQUITY        18,078  18,705 
TOTAL LIABILITIES AND EQUITY        $59,268  $55,556