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Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2023 Operating Results

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Costco announces operating results for Q4 and fiscal year 2023, with net sales increasing by 9.4% and 6.7% respectively. Net income for Q4 was $2.16 billion, compared to $1.868 billion last year. Costco currently operates 861 warehouses worldwide.
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  • Net sales increased by 9.4% for Q4 and 6.7% for fiscal year 2023.
  • Net income for Q4 increased to $2.16 billion, compared to $1.868 billion last year.
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  • None.

ISSAQUAH, Wash., Sept. 26, 2023 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the 17-week fourth quarter and the 53-week fiscal year ended September 3, 2023.

Net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4 percent from $70.76 billion in the 16-week fourth quarter last year. Net sales for the 53-week fiscal year were $237.71 billion, an increase of 6.7 percent from $222.73 billion in the 52-week fiscal year of 2022.

Comparable sales were as follows:

        
 17 Weeks 17 Weeks 53 Weeks 53 Weeks
   Adjusted*   Adjusted*
U.S.0.2% 3.1% 3.3% 4.2%
Canada1.8% 7.4% 1.7% 8.1%
Other International5.5% 4.4% 2.8% 7.6%
        
Total Company1.1% 3.8% 3.0% 5.2%
        
E-commerce-0.8% -0.6% -5.7% -4.8%

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

Net income for the 17-week fourth quarter was $2.160 billion, $4.86 per diluted share, compared to $1.868 billion, $4.20 per diluted share, in the 16-week fourth quarter last year.

Net income for the 53-week fiscal year was $6.292 billion, $14.16 per diluted share, compared to $5.844 billion, $13.14 per diluted share, in the 52-week prior year.

Costco currently operates 861 warehouses, including 591 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, five in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, September 26, 2023, and will be available via a webcast on investor.costco.com (click “Events & Presentations”).

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 and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, 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 and the Ukraine conflict), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, public-health related factors, 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. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with GAAP.

CONTACTS:Costco Wholesale Corporation
 Richard Galanti, 425/313-8203
 David Sherwood, 425/313-8239
 Josh Dahmen, 425/313-8254


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

 17 Weeks Ended 16 Weeks Ended 53 Weeks Ended 52 Weeks Ended
 September 3, 2023 August 28, 2022 September 3, 2023 August 28, 2022
REVENUE       
Net sales$77,430  $70,764  $237,710  $222,730 
Membership fees 1,509   1,327   4,580   4,224 
Total revenue 78,939   72,091   242,290   226,954 
OPERATING EXPENSES       
Merchandise costs 69,219   63,558   212,586   199,382 
Selling, general and administrative 6,939   6,036   21,590   19,779 
Operating income 2,781   2,497   8,114   7,793 
OTHER INCOME (EXPENSE)       
Interest expense (56)  (48)  (160)  (158)
Interest income and other, net 238   67   533   205 
INCOME BEFORE INCOME TAXES 2,963   2,516   8,487   7,840 
Provision for income taxes 803   638   2,195   1,925 
Net income including noncontrolling interests 2,160   1,878   6,292   5,915 
Net income attributable to noncontrolling interests    (10)     (71)
NET INCOME ATTRIBUTABLE TO COSTCO$2,160  $1,868  $6,292  $5,844 
        
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:       
Basic$4.87  $4.21  $14.18  $13.17 
Diluted$4.86  $4.20  $14.16  $13.14 
        
Shares used in calculation (000’s):       
Basic 443,876   443,839   443,854   443,651 
Diluted 444,445   444,655   444,452   444,757 
        


COSTCO WHOLESALE CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)

Subject to Reclassification

   September 3,
2023
 August 28,
2022
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$13,700  $10,203 
Short-term investments 1,534   846 
Receivables, net 2,285   2,241 
Merchandise inventories 16,651   17,907 
Other current assets 1,709   1,499 
Total current assets 35,879   32,696 
OTHER ASSETS   
Property and equipment, net 26,684   24,646 
Operating lease right-of-use assets 2,713   2,774 
Other long-term assets 3,718   4,050 
TOTAL ASSETS$68,994  $64,166 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable$17,483  $17,848 
Accrued salaries and benefits 4,278   4,381 
Accrued member rewards 2,150   1,911 
Deferred membership fees 2,337   2,174 
Current portion of long-term debt 1,081   73 
Other current liabilities 6,254   5,611 
Total current liabilities 33,583   31,998 
OTHER LIABILITIES   
Long-term debt, excluding current portion 5,377   6,484 
Long-term operating lease liabilities 2,426   2,482 
Other long-term liabilities 2,550   2,555 
TOTAL LIABILITIES 43,936   43,519 
COMMITMENTS AND CONTINGENCIES   
EQUITY   
Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding     
Common stock $0.005 par value; 900,000,000 shares authorized; 442,793,000 and 442,664,000 shares issued and outstanding 2   2 
Additional paid-in capital 7,340   6,884 
Accumulated other comprehensive loss (1,805)  (1,829)
Retained earnings 19,521   15,585 
Total Costco stockholders’ equity 25,058   20,642 
Noncontrolling interests    5 
TOTAL EQUITY 25,058   20,647 
TOTAL LIABILITIES AND EQUITY$68,994  $64,166 
        

                          

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in millions)
(unaudited)

Subject to Reclassification

 53 Weeks Ended 52 Weeks Ended
 September 3,
2023
 August 28,
2022
CASH FLOWS FROM OPERATING ACTIVITIES   
Net income including noncontrolling interests$6,292  $5,915 
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:   
Depreciation and amortization 2,077   1,900 
Non-cash lease expense 412   377 
Stock-based compensation 774   724 
Other non-cash operating activities, net 495   39 
Changes in working capital 1,018   (1,563)
Net cash provided by operating activities 11,068   7,392 
CASH FLOWS FROM INVESTING ACTIVITIES   
Purchases of short-term investments (1,622)  (1,121)
Maturities and sales of short-term investments 937   1,145 
Additions to property and equipment (4,323)  (3,891)
Other investing activities, net 36   (48)
Net cash used in investing activities (4,972)  (3,915)
CASH FLOWS FROM FINANCING ACTIVITIES   
Repayments of short-term borrowings (935)  (6)
Proceeds from short-term borrowings 917   53 
Repayments of long-term debt (75)  (800)
Tax withholdings on stock-based awards (303)  (363)
Repurchases of common stock (676)  (439)
Cash dividend payments (1,251)  (1,498)
Financing lease payments (291)  (176)
Dividend to noncontrolling interest    (208)
Acquisition of noncontrolling interest    (842)
Other financing activities, net    (4)
Net cash used in financing activities (2,614)  (4,283)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 15   (249)
Net change in cash and cash equivalents 3,497   (1,055)
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 10,203   11,258 
CASH AND CASH EQUIVALENTS END OF YEAR$13,700  $10,203 


Costco Wholesale Corporation

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About COST

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories.