Exhibit 99.1

 

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COSTCO WHOLESALE CORPORATION REPORTS FIRST QUARTER

FISCAL YEAR 2020 OPERATING RESULTS

ISSAQUAH, Wash., December 12, 2019 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2020, ended November 24, 2019.

Net sales for the first quarter were $36.24 billion, an increase of 5.6 percent from $34.31 billion last year.

Comparable sales for the first quarter fiscal 2020 were as follows:

 

     12 Weeks     12 Weeks  
           Adjusted*  

U.S.

     4.7     5.0

Canada

     2.9     5.1

Other International

     3.2     4.5

Total Company

     4.3     5.0
  

 

 

   

 

 

 

E-commerce

     5.5     5.7
  

 

 

   

 

 

 

 

*

Excluding the impacts from changes in gasoline prices and foreign exchange.

Total and comparable sales were negatively impacted by approximately one-half percent due to Thanksgiving occurring a week later this year. E-commerce sales in the quarter were negatively impacted by an estimated 12 percentage points.

Net income for the quarter was $844 million, or $1.90 per diluted share, compared to $767 million, or $1.73 per diluted share, last year. This year’s first quarter reflects a $77 million ($0.17 per diluted share) tax benefit related to stock-based compensation, compared to a $59 million ($0.13 per diluted share) similar benefit last year.

Costco currently operates 785 warehouses, including 546 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two 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, and Japan.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, December 12, 2019, 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


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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, 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, 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

 


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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

 

     12 Weeks Ended  
     November 24, 2019     November 25, 2018  

REVENUE

    

Net sales

   $ 36,236     $ 34,311  

Membership fees

     804       758  
  

 

 

   

 

 

 

Total revenue

   $ 37,040       35,069  

OPERATING EXPENSES

    

Merchandise costs

     32,233       30,623  

Selling, general and administrative

     3,732       3,475  

Preopening expenses

     14       22  
  

 

 

   

 

 

 

Operating income

     1,061       949  

OTHER INCOME (EXPENSE)

    

Interest expense

     (38     (36

Interest income and other, net

     35       22  
  

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     1,058       935  

Provision for income taxes

     202       158  
  

 

 

   

 

 

 

Net income including noncontrolling interests

     856       777  

Net income attributable to noncontrolling interests

     (12     (10
  

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO COSTCO

   $ 844     $ 767  
  

 

 

   

 

 

 

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:

    

Basic

   $ 1.91     $ 1.75  
  

 

 

   

 

 

 

Diluted

   $ 1.90     $ 1.73  
  

 

 

   

 

 

 

Shares used in calculation (000’s):

    

Basic

     441,818       439,157  

Diluted

     443,680       442,749  

 


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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in millions, except par value and share data)

(unaudited)

 

Subject to Reclassification    November 24, 2019     September 1, 2019  
ASSETS     

CURRENT ASSETS

    

Cash and cash equivalents

   $ 9,027     $ 8,384  

Short-term investments

     993       1,060  

Receivables, net

     1,711       1,535  

Merchandise inventories

     13,818       11,395  

Other current assets

     1,094       1,111  
  

 

 

   

 

 

 

Total current assets

     26,643       23,485  
  

 

 

   

 

 

 

PROPERTY AND EQUIPMENT

    

Land

     6,533       6,417  

Buildings and improvements

     17,712       17,136  

Equipment and fixtures

     8,243       7,801  

Construction in progress

     803       1,272  

Accumulated depreciation and amortization

     (12,054     (11,736
  

 

 

   

 

 

 

Net property and equipment

     21,237       20,890  
  

 

 

   

 

 

 

OTHER ASSETS

    

Operating lease right-of-use assets

     2,508       —    

Other long-term assets

     954       1,025  
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 51,342     $ 45,400  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

CURRENT LIABILITIES

    

Accounts payable

   $ 14,440     $ 11,679  

Accrued salaries and benefits

     3,159       3,176  

Accrued member rewards

     1,193       1,180  

Deferred membership fees

     1,817       1,711  

Current portion of long-term debt

     1,700       1,699  

Other current liabilities

     3,956       3,792  
  

 

 

   

 

 

 

Total current liabilities

     26,265       23,237  

LONG-TERM LIABILITIES

    

Long-term debt, excluding current portion

     5,107       5,124  

Long-term operating lease liabilities

     2,353       —    

Other long-term liabilities

     1,393       1,455  
  

 

 

   

 

 

 

TOTAL LIABILITIES

     35,118       29,816  
  

 

 

   

 

 

 

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; 441,778,000 and 439,625,000 shares issued and outstanding

     4       4  

Additional paid-in capital

     6,391       6,417  

Accumulated other comprehensive loss

     (1,321     (1,436

Retained earnings

     10,787       10,258  
  

 

 

   

 

 

 

Total Costco stockholders’ equity

     15,861       15,243  

Noncontrolling interests

     363       341  
  

 

 

   

 

 

 

TOTAL EQUITY

     16,224       15,584  
  

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 51,342     $ 45,400  
  

 

 

   

 

 

 

 

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