Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2022

ISSAQUAH, Wash., May 26, 2022 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the third quarter (twelve weeks) and the first 36 weeks of fiscal 2022, ended May 8, 2022.

Net sales for the quarter increased 16.3 percent, to $51.61 billion, from $44.38 billion last year. Net sales for the first 36 weeks increased 16.4 percent, to $151.97 billion, from $130.61 billion last year.

Comparable sales for the third quarter fiscal 2022 were as follows:

	12 Weeks		12 Weeks		36 Weeks		36 Weeks
			Adjusted*				Adjusted*
U.S.	16.6%		10.7%		15.8%		10.7%
Canada	15.2%		12.8%		16.1%		11.2%
Other International	5.7%		9.1%		8.3%		9.6%
Total Company	14.9%		10.8%		14.8%		10.6%
E-commerce	7.4%		7.9%		11.4%		11.3%

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

Net income for the quarter was $1,353 million, $3.04 per diluted share, which included a one-time $77 million pretax charge, $0.13 per diluted share, for incremental benefits awarded under the new employee agreement effective March 14. Last year’s third quarter net income was $1,220 million, $2.75 per diluted share, which included $57 million pretax, $0.09 per diluted share, in COVID-19 related costs, primarily from $2 per hour premium pay. Net income for the first 36 weeks of fiscal 2022 was $3.98 billion, $8.94 per diluted share, compared to $3.34 billion, $7.51 per diluted share, last year.

Costco currently operates 830 warehouses, including 574 in the United States and Puerto Rico, 105 in Canada, 40 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, May 26, 2022, 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 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, and COVID-19 related factors and challenges, including (among others) the duration of the pandemic, the unknown long-term economic impact, reduced shopping due to illness, travel restrictions or financial hardship, shifts in demand for products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures or operational limitations due to government mandates, or supply-chain disruptions, capacity constraints of third-party logistics suppliers, 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 Bob Nelson, 425/313-8255 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)

	12 Weeks Ended								36 Weeks Ended
	May 8, 2022				May 9, 2021				May 8, 2022				May 9, 2021
REVENUE
Net sales	$	51,612			$	44,376			$	151,966			$	130,611
Membership fees		984				901				2,897				2,643
Total revenue		52,596				45,277				154,863				133,254
OPERATING EXPENSES
Merchandise costs		46,355				39,415				135,824				115,951
Selling, general and administrative		4,450				4,199				13,743				12,870
Operating income		1,791				1,663				5,296				4,433
OTHER INCOME (EXPENSE)
Interest expense		(35	)			(40	)			(110	)			(119	)
Interest income and other, net		71				27				138				75
INCOME BEFORE INCOME TAXES		1,827				1,650				5,324				4,389
Provision for income taxes		455				417				1,287				1,004
Net income including noncontrolling interests		1,372				1,233				4,037				3,385
Net income attributable to noncontrolling interests		(19	)			(13	)			(61	)			(48	)
NET INCOME ATTRIBUTABLE TO COSTCO	$	1,353			$	1,220			$	3,976			$	3,337
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic	$	3.05			$	2.75			$	8.96			$	7.53
Diluted	$	3.04			$	2.75			$	8.94			$	7.51
Shares used in calculation (000s):
Basic		443,700				443,043				443,567				443,043
Diluted		444,886				444,127				444,802				444,336

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

Subject to Reclassification

	May 8, 2022				August 29, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	11,193			$	11,258
Short-term investments		638				917
Receivables, net		1,991				1,803
Merchandise inventories		17,623				14,215
Other current assets		1,563				1,312
Total current assets		33,008				29,505
OTHER ASSETS
Property and equipment, net		24,143				23,492
Operating lease right-of-use assets		2,731				2,890
Other long-term assets		3,970				3,381
TOTAL ASSETS	$	63,852			$	59,268
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	17,651			$	16,278
Accrued salaries and benefits		4,090				4,090
Accrued member rewards		1,828				1,671
Deferred membership fees		2,251				2,042
Current portion of long-term debt		77				799
Other current liabilities		5,948				4,561
Total current liabilities		31,845				29,441
OTHER LIABILITIES
Long-term debt, excluding current portion		6,507				6,692
Long-term operating lease liabilities		2,452				2,642
Other long-term liabilities		2,535				2,415
TOTAL LIABILITIES		43,339				41,190
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; 443,029,000 and 441,825,000 shares issued and outstanding		4				4
Additional paid-in capital		7,272				7,031
Accumulated other comprehensive loss		(1,602	)			(1,137	)
Retained earnings		14,294				11,666
Total Costco stockholders’ equity		19,968				17,564
Noncontrolling interests		545				514
TOTAL EQUITY		20,513				18,078
TOTAL LIABILITIES AND EQUITY	$	63,852			$	59,268