CostcoInvestor RelationsBack to costco.com
investor relations home

investor overview

corporate governance and citizenship

stock information

financial reports

SEC filings

fundamentals

news releases

sales news

earnings releases

company releases

analyst coverages

webcasts & presentations

event calendar

investor FAQs

contact information

Costco logo request

media request form

news release
Printer Friendly Version View printer-friendly version
<< Back
Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2010 Operating Results and September Sales Results

ISSAQUAH, WA, Oct 06, 2010 (MARKETWIRE via COMTEX) -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the 16 weeks (fourth quarter) and the 52 weeks (fiscal year) ended August 29, 2010, and its September sales results.

Net sales for the fiscal 2010 fourth quarter, the 16 weeks ended August 29, 2010, were $23.59 billion, an increase of eight percent from $21.89 billion in the 16-week fourth quarter of fiscal 2009 ended August 30, 2009. Net sales for the 52-week fiscal year 2010 were $76.25 billion, an increase of nine percent from $69.89 billion in the 52-week fiscal year 2009 ended August 30, 2009.

Comparable sales for the 16-week fiscal fourth quarter and the 52-week fiscal year 2010 were as follows:

                                      16 Weeks     52 Weeks
                                     ----------   ----------
                 U.S.                    4%           4%
                 International          14%          19%
                 Total Company           6%           7%
                                     ==========   ==========

Comparable sales for the 16-week and 52-week periods, excluding the positive impacts from gasoline inflation and the strengthening of foreign currencies (primarily in Canada and Korea), were as follows:

                                      16 Weeks     52 Weeks
                                     ----------   ----------
                 U.S.                    3%           2%
                 International           8%           8%
                 Total Company           4%           4%
                                     ==========   ==========

Net income for the fourth quarter of fiscal 2010 was $432 million, or $.97 per diluted share, compared to $374 million, or $.85 per diluted share, during the fourth quarter of fiscal 2009.

Net income for fiscal 2010 was $1.30 billion, or $2.92 per diluted share, compared to $1.09 billion, or $2.47 per diluted share, during fiscal year 2009.

For the five-week reporting month of September, ended October 3, 2010, the Company reported net sales of $7.51 billion, an increase of ten percent from $6.84 billion during the similar five-week period of the prior year. This year's five-week period includes sales from the Company's Mexico joint venture, as the Company began consolidating its Mexico operations on a prospective basis beginning with its 2011 fiscal year on August 30, 2010, due to the adoption of a new accounting standard. Total sales for the five-week period excluding Mexico sales reflected a seven percent increase over the similar five-week period of the prior year.

Comparable sales for the five-week retail-reporting month of September were as follows:

                                            5 Weeks
                                           ---------
                   U.S.                        2%
                   International              14%
                   Total Company               5%
                                           =========

Comparable sales for the five-week period, excluding the positive impacts from gasoline inflation and foreign exchange (primarily in Canada and Korea), were as follows:

                                            5 Weeks
                                           ---------
                   U.S.                        2%
                   International              10%
                   Total Company               4%
                                           =========

Costco currently operates 573 warehouses, including 417 in the United States and Puerto Rico, 79 in Canada, 22 in the United Kingdom, seven in Korea, six in Taiwan, nine in Japan, one in Australia and 32 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 up to nine additional warehouses in the first four months of fiscal 2011, prior to the end of calendar year 2010.

A conference call to discuss these fiscal 2010 fourth quarter and year-end operating results is scheduled for 7:00 a.m. (PT) today, October 6, 2010, 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, conditions affecting the acquisition, development, ownership or use of real estate, actions of vendors, rising costs associated with employees (including health care 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
                      CONSOLIDATED STATEMENTS OF INCOME
                (dollars in millions, except per share data)
                                 (unaudited)
                                16 Weeks Ended         52 Weeks Ended
                            ----------------------  ----------------------
                            August 29,  August 30,  August 29,  August 30,
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------
REVENUE
  Net sales                 $   23,592  $   21,888  $   76,255  $   69,889
  Membership fees                  533         490       1,691       1,533
                            ----------  ----------  ----------  ----------
    Total revenue               24,125      22,378      77,946      71,422
OPERATING EXPENSES
  Merchandise costs             21,024      19,512      67,995      62,335
  Selling, general and
   administrative                2,401       2,254       7,840       7,252
  Preopening expenses                9          12          26          41
  Provision for impaired
   assets and closing
   costs, net                        3           2           8          17
                            ----------  ----------  ----------  ----------
    Operating income               688         598       2,077       1,777
OTHER INCOME (EXPENSE)
  Interest expense                 (34)        (33)       (111)       (108)
  Interest income and
   other, net                       30          19          88          58
                            ----------  ----------  ----------  ----------
INCOME BEFORE INCOME TAXES         684         584       2,054       1,727
  Provision for income taxes       247         206         731         628
                            ----------  ----------  ----------  ----------
Net income including
 noncontrolling interests          437         378       1,323       1,099
Net income attributable to
 noncontrolling interests           (5)         (4)        (20)        (13)
                            ----------  ----------  ----------  ----------
NET INCOME ATTRIBUTABLE
 TO COSTCO                  $      432  $      374  $    1,303  $    1,086
                            ==========  ==========  ==========  ==========
NET INCOME PER COMMON SHARE
 ATTRIBUTABLE TO COSTCO:
  Basic                     $     0.99  $     0.86  $     2.97  $     2.50
                            ==========  ==========  ==========  ==========
  Diluted                   $     0.97  $     0.85  $     2.92  $     2.47
                            ==========  ==========  ==========  ==========
Shares used in calculation
 (000's)
  Basic                        437,071     435,255     438,611     433,988
  Diluted                      444,289     441,699     445,970     440,454
Dividends per share         $    0.205  $    0.180  $    0.770  $    0.680
                         COSTCO WHOLESALE CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                            (dollars in millions)
                                (unaudited)
Subject to Reclassifications
                                                    August 29,   August 30,
                                                       2010         2009
                                                   -----------  -----------
                            ASSETS
Cash and cash equivalents                          $     3,214  $     3,157
Short-term investments                                   1,535          570
Receivables, net                                           884          834
Merchandise inventories                                  5,638        5,405
Deferred income taxes and other current assets             437          371
                                                   -----------  -----------
  Total current assets                                  11,708       10,337
Property and equipment, net                             11,314       10,900
Other assets                                               793          742
TOTAL ASSETS                                       $    23,815  $    21,979
                                                   ===========  ===========
                 LIABILITIES AND EQUITY
Accounts payable                                   $     5,947  $     5,450
Short-term borrowings and current portion
 of long-term debt                                          26           96
Other current liabilities                                4,090        3,735
                                                   -----------  -----------
  Total current liabilities                             10,063        9,281
Long-term debt, excluding current portion                2,141        2,130
Deferred income taxes and other liabilities                681          464
                                                   -----------  -----------
  Total liabilities                                     12,885       11,875
                                                   -----------  -----------
Total Costco stockholders' equity                       10,829       10,024
Noncontrolling interests                                   101           80
                                                   -----------  -----------
  Total equity                                          10,930       10,104
                                                   -----------  -----------
TOTAL LIABILITIES AND EQUITY                       $    23,815  $    21,979
                                                   ===========  ===========
CONTACTS:
Costco Wholesale Corporation
Richard Galanti
425/313-8203
Bob Nelson
425/313-8255
Jeff Elliott
425/313-8264

SOURCE: Costco

©1998-2010 Costco Wholesale Corporation. All rights reserved.
Privacy Statement,  Investor Relations,  Employment Opportunities