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 2011 Operating Results, September Sales Results and Plans for Membership Fee Increases

ISSAQUAH, WA, Oct 05, 2011 (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 28, 2011, its September sales results, and its plans for membership fee increases.

Net sales for the fiscal 2011 fourth quarter were $27.59 billion, an increase of 17 percent from $23.59 billion in the 16-week fourth quarter of fiscal 2010 ended August 29, 2010. This year's 16-week period included sales from the Company's Mexico joint venture; otherwise the increase would have been 14 percent.

Net sales for the 52-week fiscal year 2011 were $87.05 billion, an increase of 14 percent from $76.25 billion last year; excluding Mexico sales, the increase would have been 11 percent.

Comparable sales for the 16-week fiscal fourth quarter and the 52-week fiscal year 2011, including Mexico for last year and this year, were as follows:

                                    16 Weeks 52 Weeks
                                    -------- --------

                      U.S.             10%      7%
                      International    19%      16%

                      Total Company    12%      10%
                                    ======== ========

Inflation in gasoline prices and strengthening foreign currencies had a positive impact on comparable sales. Excluding these effects, comparable sales for the sixteen-week and fifty-two-week periods were as follows:

                                    16 Weeks 52 Weeks
                                    -------- --------

                      U.S.             6%       5%
                      International    10%      10%

                      Total Company    7%       6%
                                    ======== ========

Net income for the fourth quarter of fiscal 2011 was $478 million, or $1.08 per diluted share, compared to $432 million, or $.97 per diluted share, during the fourth quarter of fiscal 2010. Net income for fiscal 2011 was $1.46 billion, or $3.30 per diluted share, compared to $1.30 billion, or $2.92 per diluted share, during fiscal year 2010. The fourth quarter this year included a $32 million pretax LIFO charge ($.04 per diluted share); for all of fiscal 2011 the LIFO charge was $87 million pretax ($.12 per diluted share), compared to no LIFO charge in fiscal 2010. The consolidation of Mexico had no impact on net income or earnings per share attributable to Costco.

For the five-week reporting month of September, ended October 2, 2011, the Company reported net sales of $8.61 billion, an increase of 15 percent from $7.51 billion during the similar five-week period last year. Both this year's and last year's five-week periods include sales from Mexico.

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

                                         5 Weeks
                                         -------

                           U.S.            11%
                           International   14%

                           Total Company   12%
                                         =======

Comparable sales for the five-week period, excluding the positive impacts from gasoline inflation and foreign exchange, were as follows:

                                         5 Weeks
                                         -------

                           U.S.             7%
                           International   10%

                           Total Company    8%
                                         =======

The Company also announced that effective November 1, 2011, it will increase annual membership fees by $5 for U.S. Goldstar (individual), Business, Business add-on and Canada Business members. With this increase, all U.S. and Canada Goldstar, Business and Business add-on members will pay an annual fee of $55. Also effective November 1, U.S. and Canada Executive Membership annual fees will increase from $100 to $110, and the maximum 2% reward associated with Executive Membership will increase from $500 to $750. The fee increases will impact a little over 22 million members, roughly half of which are Executive Members.

Costco currently operates 592 warehouses, including 429 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, nine in Japan, eight in Taiwan, seven in Korea, and three in Australia. 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 seven additional warehouses (including one relocation) in the next three months of fiscal 2012, prior to the end of calendar year 2011.

A conference call to discuss these fiscal 2011 fourth quarter and year-end operating results is scheduled for 7:00 a.m. (PT) today, October 5, 2011, 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), 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
                      CONSOLIDATED STATEMENTS OF INCOME
                 (dollars in millions, except per share data)
                                 (unaudited)

                              16 Weeks Ended            52 Weeks Ended
                         ------------------------  ------------------------
                          August 28,   August 29,   August 28,   August 29,
                             2011         2010         2011         2010
                         -----------  -----------  -----------  -----------
REVENUE
  Net sales              $    27,588  $    23,592  $    87,048  $    76,255
  Membership fees                590          533        1,867        1,691
                         -----------  -----------  -----------  -----------
    Total revenue             28,178       24,125       88,915       77,946
OPERATING EXPENSES
  Merchandise costs           24,680       21,024       77,739       67,995
  Selling, general and
   administrative              2,712        2,401        8,682        7,840
  Preopening expenses             22            9           46           26
  Provision for impaired
   assets and closing
   costs, net.                     2            3            9            8
                         -----------  -----------  -----------  -----------
    Operating income             762          688        2,439        2,077
OTHER INCOME (EXPENSE)
  Interest expense               (36)         (34)        (116)        (111)
  Interest income and
   other, net                     46           30           60           88
                         -----------  -----------  -----------  -----------
INCOME BEFORE INCOME
 TAXES                           772          684        2,383        2,054
  Provision for income
   taxes                         272          247          841          731
                         -----------  -----------  -----------  -----------
Net income including
 noncontrolling
 interests                       500          437        1,542        1,323
Net income attributable
 to noncontrolling
 interests                       (22)          (5)         (80)         (20)
                         -----------  -----------  -----------  -----------
NET INCOME ATTRIBUTABLE
 TO COSTCO               $       478  $       432  $     1,462  $     1,303
                         ===========  ===========  ===========  ===========

NET INCOME PER COMMON
 SHARE ATTRIBUTABLE TO
 COSTCO:
  Basic                  $      1.09  $      0.99  $      3.35  $      2.97
                         ===========  ===========  ===========  ===========
  Diluted                $      1.08  $      0.97  $      3.30  $      2.92
                         ===========  ===========  ===========  ===========

Shares used in
 calculation (000's)
  Basic                      436,596      437,071      436,119      438,611
  Diluted                    443,518      444,289      443,094      445,970

Dividends per share      $     0.240  $     0.205  $     0.890  $     0.770


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

Subject to Reclassifications
                                                    August 28,   August 29,
                                                       2011         2010
                                                   ------------ ------------
                      ASSETS
Cash and cash equivalents                          $      4,009 $      3,214
Short-term investments                                    1,604        1,535
Receivables, net                                            965          884
Merchandise inventories                                   6,638        5,638
Deferred income taxes and other current assets              490          437
                                                   ------------ ------------
  Total current assets                                   13,706       11,708
Property and equipment, net                              12,432       11,314
Other assets                                                623          793
                                                   ------------ ------------
TOTAL ASSETS                                       $     26,761 $     23,815
                                                   ============ ============

              LIABILITIES AND EQUITY

Short-term borrowings and current portion of long-
 term debt                                         $        900 $         26
Accounts payable                                          6,544        5,947
Other current liabilities                                 4,606        4,090
                                                   ------------ ------------
  Total current liabilities                              12,050       10,063
Long-term debt, excluding current portion                 1,253        2,141
Deferred income taxes and other liabilities                 885          681
                                                   ------------ ------------
  Total liabilities                                      14,188       12,885
                                                   ------------ ------------

Total Costco stockholders' equity                        12,002       10,829
Noncontrolling interests                                    571          101
                                                   ------------ ------------
  Total equity                                           12,573       10,930
                                                   ------------ ------------
TOTAL LIABILITIES AND EQUITY                       $     26,761 $     23,815
                                                   ============ ============



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