ISSAQUAH, WA, May 28, 2009 (MARKET WIRE via COMTEX) -- Costco Wholesale Corporation (NASDAQ: COST) announced today its
operating results for the third quarter (12 weeks) and first
thirty-six weeks of fiscal 2009, ended May 10, 2009.
Net sales for the third quarter of fiscal 2009 declined five percent,
to $15.48 billion, from $16.26 billion during the third quarter of
fiscal 2008. Net sales for the first thirty-six weeks of fiscal 2009
declined one percent, to $48.00 billion, from $48.35 billion during
the first thirty-six weeks of fiscal 2008.
Comparable sales for the fiscal third quarter and first thirty-six
weeks of fiscal 2009 were as follows:
12 Weeks 36 Weeks
-------- --------
U.S. -5% -1%
International -12% -10%
Total -7% -3%
======== ========
Comparable sales for the 12-week and 36-week periods, excluding the
negative impacts from gasoline deflation and foreign exchange
(primarily in Canada, the United Kingdom and Korea), were as follows:
12 Weeks 36 Weeks
-------- --------
U.S. (w/o gas deflation) 0% +2%
International (w/o Fx) +8% +8%
Total +2% +4%
======== ========
Net income for the third quarter of fiscal 2009 was $209.6 million,
or $.48 per diluted share, compared to $295.1 million, or $.67 per
diluted share, during the third quarter of fiscal 2008. Net income
for the first thirty-six weeks of fiscal 2009 was $711.8 million, or
$1.62 per diluted share, compared to net income for the first
thirty-six weeks of fiscal 2008 of $884.9 million, or $1.99 per
diluted share.
Richard Galanti, Chief Financial Officer of Costco, stated that
"third quarter 2009 earnings results were negatively impacted by
several factors, including: a pretax charge of $34 million (mostly
non-cash) related to a litigation settlement concerning our
membership renewal policy; higher employee benefits costs, mainly
consisting of higher health care usage; lower international profits,
a result of the significant strengthening of the U.S. dollar when
compared to the currencies of Canada, the United Kingdom, Korea and
Mexico; and lastly, ongoing weakness in sales, particularly sales of
higher-ticket, discretionary items."
Costco currently operates 555 warehouses, including 407 in the United
States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, six
in Korea, five in Taiwan, eight in Japan and 31 in Mexico. The
Company also operates Costco Online, an electronic commerce web site,
at www.costco.com and at www.costco.ca in Canada. The Company plans
to open an additional six new warehouses prior to the end of its 2009
fiscal year on August 30, 2009.
A conference call to discuss these third quarter operating results is
scheduled for 8:00 a.m. (PT) today, May 28, 2009, and is available
via a webcast on www.costco.com (click on Investor Relations and
"Webcasts").
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, conditions affecting the
acquisition, development, ownership or use of real estate, actions of
vendors, rising costs associated with employees (including health
care and workers' compensation costs), rising costs associated with
the acquisition of merchandise (including the direct and indirect
effects of the rising cost of petroleum-based products and fuel and
energy costs), 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 thousands, except per share data)
(unaudited)
12 Weeks Ended 36 Weeks Ended
------------------------ ------------------------
May 10, 2009 May 11, 2008 May 10, 2009 May 11, 2008
----------- ----------- ----------- -----------
REVENUE
Net sales $15,477,445 $16,262,793 $48,001,528 $48,351,255
Membership fees 328,448 350,924 1,042,796 1,031,878
----------- ----------- ----------- -----------
Total revenue 15,805,893 16,613,717 49,044,324 49,383,133
OPERATING EXPENSES
Merchandise costs 13,775,988 14,548,022 42,822,761 43,204,722
Selling, general and
administrative 1,654,943 1,582,488 4,998,447 4,767,613
Preopening expenses 9,280 8,427 29,392 39,618
Provision for impaired
assets and closing
costs, net 6,562 9,205 14,514 6,419
----------- ----------- ----------- -----------
Operating income 359,120 465,575 1,179,210 1,364,761
OTHER INCOME (EXPENSE)
Interest expense (25,168) (24,140) (74,954) (70,579)
Interest income and
other 4,156 23,888 30,174 97,769
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES 338,108 465,323 1,134,430 1,391,951
Provision for income
taxes 128,516 170,257 422,598 507,054
----------- ----------- ----------- -----------
NET INCOME $ 209,592 $ 295,066 $ 711,832 $ 884,897
=========== =========== =========== ===========
NET INCOME PER COMMON
SHARE:
Basic $ 0.48 $ 0.68 $ 1.64 $ 2.04
=========== =========== =========== ===========
Diluted $ 0.48 $ 0.67 $ 1.62 $ 1.99
=========== =========== =========== ===========
Shares used in
calculation (000's)
Basic 434,354 433,678 433,426 434,515
Diluted 439,997 443,281 439,995 444,379
Dividends per share $ 0.18 $ 0.16 $ 0.50 $ 0.45
CONTACTS:
Costco Wholesale Corporation
Richard Galanti, 425/313-8203
Bob Nelson, 425/313-8255
Jeff Elliott, 425/313-8264
SOURCE: Costco
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