ISSAQUAH, Wash., Dec. 14, 2017 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq:COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2018, ended November 26, 2017.

Net sales for the first quarter were $31.12 billion, an increase of 13.3 percent from $27.47 billion during the first quarter last year.

While this year’s twelve-week first quarter included one less sales day in the U.S. than the first quarter last year (due to the shift of the Thanksgiving holiday this year), pre-Thanksgiving and Black Friday/Holiday weekend sales fell into the first quarter this year compared to the second quarter last year. Combined, these factors produced an estimated net benefit of approximately 1.5% in the U.S., and slightly less worldwide.

Comparable sales for the first quarter fiscal 2018 were as follows:

 
  12 Weeks  12 Weeks 
                            w/o gas inflation & FX  
      
U.S. 10.3% 8.7% 
Canada 11.3% 4.3% 
Other International 10.1% 8.2% 
      
Total Company 10.5% 7.9% 
      
E-commerce 43.5% 42.1% 
      

Reported net income for the quarter was $640 million, or $1.45 per diluted share, compared to $545 million, or $1.24 per diluted share, last year. This year’s first quarter benefited from a $41 million ($0.09 per diluted share) tax benefit related to a change in accounting rules for stock-based compensation. Last year’s first quarter benefited from a non-recurring $51 million ($0.07 per diluted share after tax) legal settlement.

Costco currently operates 746 warehouses, including 518 in the United States and Puerto Rico, 98 in Canada, 37 in Mexico, 28 in the United Kingdom, 26 in Japan, 13 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in Iceland and one in France. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea and Taiwan.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, December 14, 2017, 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, 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 (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. 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


COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (dollars in millions, except per share data)
(unaudited)

 
   November 26,
2017
  November 20,
2016
 
REVENUE       
  Net sales $31,117  $27,469  
  Membership fees  692   630  
  Total revenue  31,809   28,099  
OPERATING EXPENSES       
  Merchandise costs  27,617   24,288  
  Selling, general and administrative  3,224   2,940  
  Preopening expenses  17   22  
  Operating income  951   849  
OTHER INCOME (EXPENSE)       
  Interest expense  (37)  (29) 
  Interest income and other, net  22   26  
INCOME BEFORE INCOME TAXES  936   846  
  Provision for income taxes  285   291  
  Net income including noncontrolling interests  651   555  
  Net income attributable to noncontrolling interests  (11)  (10) 
NET INCOME ATTRIBUTABLE TO COSTCO $640  $545  
        
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
  Basic $1.46  $1.24  
  Diluted $1.45  $1.24  
        
Shares used in calculation: (000’s)       
  Basic  437,965   438,007  
  Diluted  440,851   440,525  
        
        
        
Cash dividends declared per common share $0.50  $0.45  
        

                                   

    
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 (amounts in millions, except par value and share data)
(unaudited)
    
Subject to Reclassifications
    
 November 26,
 2017
 September 3,
 2017
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$5,689  $4,546 
Short-term investments1,196  1,233 
Receivables, net1,559  1,432 
Merchandise inventories11,213  9,834 
Other current assets240  272 
Total current assets19,897  17,317 
PROPERTY AND EQUIPMENT   
Land5,915  5,690 
Buildings and improvements15,523  15,127 
Equipment and fixtures6,859  6,681 
Construction in progress812  843 
 29,109  28,341 
Less accumulated depreciation and amortization(10,427) (10,180)
Net property and equipment18,682  18,161 
OTHER ASSETS799  869 
TOTAL ASSETS$39,378  $36,347 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$11,992  $9,608 
Accrued salaries and benefits2,791  2,703 
Accrued member rewards973  961 
Deferred membership fees1,590  1,498 
Other current liabilities3,014  2,725 
Total current liabilities20,360  17,495 
LONG-TERM DEBT, excluding current portion6,478  6,573 
OTHER LIABILITIES1,184  1,200 
Total liabilities28,022  25,268 
COMMITMENTS AND CONTINGENCIES   
EQUITY   
Preferred stock $.01 par value; 100,000,000 shares authorized; no shares
   issued and outstanding
0  0 
Common stock $.01 par value; 900,000,000 shares authorized;
   439,185,000 and 437,204,000 shares issued and outstanding
4  4 
Additional paid-in capital5,811  5,800 
Accumulated other comprehensive loss(1,037) (1,014)
Retained earnings6,300  5,988 
Total Costco stockholders’ equity11,078  10,778 
Noncontrolling interests278  301 
Total equity11,356  11,079 
TOTAL LIABILITIES AND EQUITY$39,378  $36,347