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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Costco Wholesale Corporation | NASDAQ:COST | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
10.96 | 1.39% | 798.00 | 797.89 | 798.23 | 804.56 | 787.83 | 791.81 | 1,370,357 | 19:49:47 |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Washington
|
|
91-1223280
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
☒
|
|
Accelerated filer
☐
|
Non-accelerated filer
☐
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
☐
|
Emerging growth company
☐
|
|
|
|
|
Page
|
PART I
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
PART II
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
May 13,
2018 |
|
September 3,
2017 |
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
5,877
|
|
|
$
|
4,546
|
|
Short-term investments
|
1,167
|
|
|
1,233
|
|
||
Receivables, net
|
1,593
|
|
|
1,432
|
|
||
Merchandise inventories
|
10,626
|
|
|
9,834
|
|
||
Other current assets
|
430
|
|
|
272
|
|
||
Total current assets
|
19,693
|
|
|
17,317
|
|
||
PROPERTY AND EQUIPMENT
|
|
|
|
||||
Land
|
6,093
|
|
|
5,690
|
|
||
Buildings and improvements
|
15,786
|
|
|
15,127
|
|
||
Equipment and fixtures
|
7,161
|
|
|
6,681
|
|
||
Construction in progress
|
1,070
|
|
|
843
|
|
||
|
30,110
|
|
|
28,341
|
|
||
Less accumulated depreciation and amortization
|
(10,932
|
)
|
|
(10,180
|
)
|
||
Net property and equipment
|
19,178
|
|
|
18,161
|
|
||
OTHER ASSETS
|
734
|
|
|
869
|
|
||
TOTAL ASSETS
|
$
|
39,605
|
|
|
$
|
36,347
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
||||
Accounts payable
|
$
|
10,705
|
|
|
$
|
9,608
|
|
Accrued salaries and benefits
|
2,697
|
|
|
2,703
|
|
||
Accrued member rewards
|
1,041
|
|
|
961
|
|
||
Deferred membership fees
|
1,679
|
|
|
1,498
|
|
||
Other current liabilities
|
3,289
|
|
|
2,725
|
|
||
Total current liabilities
|
19,411
|
|
|
17,495
|
|
||
LONG-TERM DEBT, excluding current portion
|
6,492
|
|
|
6,573
|
|
||
OTHER LIABILITIES
|
1,255
|
|
|
1,200
|
|
||
Total liabilities
|
27,158
|
|
|
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; 438,602,000 and 437,204,000 shares issued and outstanding
|
4
|
|
|
4
|
|
||
Additional paid-in capital
|
6,001
|
|
|
5,800
|
|
||
Accumulated other comprehensive loss
|
(1,038
|
)
|
|
(1,014
|
)
|
||
Retained earnings
|
7,176
|
|
|
5,988
|
|
||
Total Costco stockholders’ equity
|
12,143
|
|
|
10,778
|
|
||
Noncontrolling interests
|
304
|
|
|
301
|
|
||
Total equity
|
12,447
|
|
|
11,079
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
39,605
|
|
|
$
|
36,347
|
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
REVENUE
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
31,624
|
|
|
$
|
28,216
|
|
|
$
|
95,020
|
|
|
$
|
84,815
|
|
Membership fees
|
737
|
|
|
644
|
|
|
2,145
|
|
|
1,910
|
|
||||
Total revenue
|
32,361
|
|
|
28,860
|
|
|
97,165
|
|
|
86,725
|
|
||||
OPERATING EXPENSES
|
|
|
|
|
|
|
|
||||||||
Merchandise costs
|
28,131
|
|
|
24,970
|
|
|
84,481
|
|
|
75,185
|
|
||||
Selling, general and administrative
|
3,155
|
|
|
2,907
|
|
|
9,613
|
|
|
8,827
|
|
||||
Preopening expenses
|
8
|
|
|
15
|
|
|
37
|
|
|
52
|
|
||||
Operating income
|
1,067
|
|
|
968
|
|
|
3,034
|
|
|
2,661
|
|
||||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(37
|
)
|
|
(21
|
)
|
|
(111
|
)
|
|
(81
|
)
|
||||
Interest income and other, net
|
41
|
|
|
18
|
|
|
70
|
|
|
40
|
|
||||
INCOME BEFORE INCOME TAXES
|
1,071
|
|
|
965
|
|
|
2,993
|
|
|
2,620
|
|
||||
Provision for income taxes
|
309
|
|
|
259
|
|
|
867
|
|
|
838
|
|
||||
Net income including noncontrolling interests
|
762
|
|
|
706
|
|
|
2,126
|
|
|
1,782
|
|
||||
Net income attributable to noncontrolling interests
|
(12
|
)
|
|
(6
|
)
|
|
(35
|
)
|
|
(22
|
)
|
||||
NET INCOME ATTRIBUTABLE TO COSTCO
|
$
|
750
|
|
|
$
|
700
|
|
|
$
|
2,091
|
|
|
$
|
1,760
|
|
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.71
|
|
|
$
|
1.59
|
|
|
$
|
4.77
|
|
|
$
|
4.01
|
|
Diluted
|
$
|
1.70
|
|
|
$
|
1.59
|
|
|
$
|
4.74
|
|
|
$
|
3.99
|
|
Shares used in calculation (000’s):
|
|
|
|
|
|
|
|
||||||||
Basic
|
438,740
|
|
|
438,817
|
|
|
438,576
|
|
|
438,650
|
|
||||
Diluted
|
441,715
|
|
|
441,056
|
|
|
441,383
|
|
|
440,745
|
|
||||
CASH DIVIDENDS DECLARED PER COMMON SHARE
|
$
|
0.57
|
|
|
$
|
7.50
|
|
|
$
|
1.57
|
|
|
$
|
8.40
|
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
NET INCOME INCLUDING NONCONTROLLING INTERESTS
|
$
|
762
|
|
|
$
|
706
|
|
|
$
|
2,126
|
|
|
$
|
1,782
|
|
Foreign-currency translation adjustment and other, net
|
(149
|
)
|
|
21
|
|
|
(22
|
)
|
|
(210
|
)
|
||||
Comprehensive income
|
613
|
|
|
727
|
|
|
2,104
|
|
|
1,572
|
|
||||
Less: Comprehensive income attributable to noncontrolling interests
|
4
|
|
|
15
|
|
|
37
|
|
|
34
|
|
||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO
|
$
|
609
|
|
|
$
|
712
|
|
|
$
|
2,067
|
|
|
$
|
1,538
|
|
|
36 Weeks Ended
|
||||||
|
May 13,
2018 |
|
May 7,
2017 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income including noncontrolling interests
|
$
|
2,126
|
|
|
$
|
1,782
|
|
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
1,006
|
|
|
929
|
|
||
Stock-based compensation
|
431
|
|
|
404
|
|
||
Other non-cash operating activities, net
|
(3
|
)
|
|
(66
|
)
|
||
Deferred income taxes
|
(21
|
)
|
|
47
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Merchandise inventories
|
(828
|
)
|
|
(952
|
)
|
||
Accounts payable
|
1,160
|
|
|
2,234
|
|
||
Other operating assets and liabilities, net
|
349
|
|
|
514
|
|
||
Net cash provided by operating activities
|
4,220
|
|
|
4,892
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Purchases of short-term investments
|
(679
|
)
|
|
(901
|
)
|
||
Maturities and sales of short-term investments
|
743
|
|
|
1,046
|
|
||
Additions to property and equipment
|
(1,913
|
)
|
|
(1,723
|
)
|
||
Other investing activities, net
|
(3
|
)
|
|
28
|
|
||
Net cash used in investing activities
|
(1,852
|
)
|
|
(1,550
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Change in bank checks outstanding
|
(23
|
)
|
|
(243
|
)
|
||
Repayments of long-term debt
|
(58
|
)
|
|
(1,100
|
)
|
||
Tax withholdings on stock-based awards
|
(217
|
)
|
|
(202
|
)
|
||
Repurchases of common stock
|
(238
|
)
|
|
(236
|
)
|
||
Cash dividend payments
|
(439
|
)
|
|
(396
|
)
|
||
Other financing activities, net
|
(39
|
)
|
|
36
|
|
||
Net cash used in financing activities
|
(1,014
|
)
|
|
(2,141
|
)
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
(23
|
)
|
|
(42
|
)
|
||
Net change in cash and cash equivalents
|
1,331
|
|
|
1,159
|
|
||
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR
|
4,546
|
|
|
3,379
|
|
||
CASH AND CASH EQUIVALENTS END OF PERIOD
|
$
|
5,877
|
|
|
$
|
4,538
|
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the first thirty-six weeks of year for:
|
|
|
|
||||
Interest (reduced by $11 and $12 for interest capitalized in 2018 and 2017, respectively)
|
$
|
81
|
|
|
$
|
99
|
|
Income taxes, net
|
$
|
779
|
|
|
$
|
529
|
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
|
|
|
|
||||
Cash dividend declared, but not yet paid
|
$
|
250
|
|
|
$
|
3,290
|
|
May 13, 2018:
|
Cost
Basis
|
|
Unrealized
Loss, Net
|
|
Recorded
Basis
|
||||||
Available-for-sale:
|
|
|
|
|
|
||||||
Government and agency securities
|
$
|
914
|
|
|
$
|
(17
|
)
|
|
$
|
897
|
|
Held-to-maturity:
|
|
|
|
|
|
||||||
Certificates of deposit
|
270
|
|
|
|
|
270
|
|
||||
Total short-term investments
|
$
|
1,184
|
|
|
$
|
(17
|
)
|
|
$
|
1,167
|
|
September 3, 2017:
|
Cost
Basis
|
|
Unrealized
Gains, Net
|
|
Recorded
Basis
|
||||||
Available-for-sale:
|
|
|
|
|
|
||||||
Government and agency securities
|
$
|
947
|
|
|
$
|
0
|
|
|
$
|
947
|
|
Mortgage-backed securities
|
1
|
|
|
0
|
|
|
1
|
|
|||
Total available-for-sale
|
948
|
|
|
0
|
|
|
948
|
|
|||
Held-to-maturity:
|
|
|
|
|
|
||||||
Certificates of deposit
|
285
|
|
|
|
|
285
|
|
||||
Total short-term investments
|
$
|
1,233
|
|
|
$
|
0
|
|
|
$
|
1,233
|
|
|
Available-For-Sale
|
|
Held-To-Maturity
|
||||||||
|
Cost Basis
|
|
Fair Value
|
|
|||||||
Due in one year or less
|
$
|
207
|
|
|
$
|
206
|
|
|
$
|
270
|
|
Due after one year through five years
|
687
|
|
|
672
|
|
|
0
|
|
|||
Due after five years
|
20
|
|
|
19
|
|
|
0
|
|
|||
Total
|
$
|
914
|
|
|
$
|
897
|
|
|
$
|
270
|
|
May 13, 2018:
|
Level 1
|
|
Level 2
|
||||
Money market mutual funds
(1)
|
$
|
8
|
|
|
$
|
0
|
|
Investment in government and agency securities
(2)
|
0
|
|
|
907
|
|
||
Forward foreign-exchange contracts, in asset position
(3)
|
0
|
|
|
10
|
|
||
Forward foreign-exchange contracts, in (liability) position
(3)
|
0
|
|
|
(3
|
)
|
||
Total
|
$
|
8
|
|
|
$
|
914
|
|
September 3, 2017:
|
Level 1
|
|
Level 2
|
||||
Money market mutual funds
(1)
|
$
|
7
|
|
|
$
|
0
|
|
Investment in government and agency securities
(2)
|
0
|
|
|
947
|
|
||
Investment in mortgage-backed securities
|
0
|
|
|
1
|
|
||
Forward foreign-exchange contracts, in asset position
(3)
|
0
|
|
|
2
|
|
||
Forward foreign-exchange contracts, in (liability) position
(3)
|
0
|
|
|
(8
|
)
|
||
Total
|
$
|
7
|
|
|
$
|
942
|
|
(1)
|
Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets.
|
(2)
|
At May 13, 2018,
$10
and
$897
were included in cash and cash equivalents and short-term investments, respectively, in the accompanying condensed consolidated balance sheets. At September 3, 2017, there were no securities included in cash and cash equivalents and
$947
included in short-term investments in the accompanying condensed consolidated balance sheets.
|
(3)
|
The asset and the liability values are included in other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. See Note 1 for additional information on derivative instruments.
|
|
May 13, 2018
|
|
September 3, 2017
|
||||
1.70% Senior Notes due December 2019
|
$
|
1,198
|
|
|
$
|
1,198
|
|
1.75% Senior Notes due February 2020
|
499
|
|
|
498
|
|
||
2.15% Senior Notes due May 2021
|
995
|
|
|
994
|
|
||
2.25% Senior Notes due February 2022
|
498
|
|
|
497
|
|
||
2.30% Senior Notes due May 2022
|
794
|
|
|
793
|
|
||
2.75% Senior Notes due May 2024
|
992
|
|
|
991
|
|
||
3.00% Senior Notes due May 2027
|
986
|
|
|
986
|
|
||
Other long-term debt
|
649
|
|
|
702
|
|
||
Total long-term debt
|
6,611
|
|
|
6,659
|
|
||
Less current portion
|
119
|
|
|
86
|
|
||
Long-term debt, excluding current portion
|
$
|
6,492
|
|
|
$
|
6,573
|
|
|
Shares Repurchased (000's)
|
|
Average Price per Share
|
|
Total Cost
|
|||||
Third quarter of 2018
|
290
|
|
|
$
|
189.66
|
|
|
$
|
55
|
|
First thirty-six weeks of 2018
|
1,337
|
|
|
$
|
174.30
|
|
|
$
|
233
|
|
|
|
|
|
|
|
|||||
Third quarter of 2017
|
266
|
|
|
$
|
168.09
|
|
|
$
|
45
|
|
First thirty-six of 2017
|
1,486
|
|
|
$
|
156.51
|
|
|
$
|
233
|
|
|
Attributable to Costco
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||
Equity at September 3, 2017
|
$
|
10,778
|
|
|
$
|
301
|
|
|
$
|
11,079
|
|
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
2,091
|
|
|
35
|
|
|
2,126
|
|
|||
Foreign-currency translation adjustment and other, net
|
(24
|
)
|
|
2
|
|
|
(22
|
)
|
|||
Comprehensive income
|
2,067
|
|
|
37
|
|
|
2,104
|
|
|||
Stock-based compensation
|
434
|
|
|
0
|
|
|
434
|
|
|||
Release of vested restricted stock units (RSUs), including tax effects
|
(217
|
)
|
|
0
|
|
|
(217
|
)
|
|||
Repurchases of common stock
|
(233
|
)
|
|
0
|
|
|
(233
|
)
|
|||
Cash dividends declared and other
|
(686
|
)
|
|
(34
|
)
|
|
(720
|
)
|
|||
Equity at May 13, 2018
|
$
|
12,143
|
|
|
$
|
304
|
|
|
$
|
12,447
|
|
|
Attributable to Costco
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||
Equity at August 28, 2016
|
$
|
12,079
|
|
|
$
|
253
|
|
|
$
|
12,332
|
|
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
1,760
|
|
|
22
|
|
|
1,782
|
|
|||
Foreign-currency translation adjustment and other, net
|
(222
|
)
|
|
12
|
|
|
(210
|
)
|
|||
Comprehensive income
|
1,538
|
|
|
34
|
|
|
1,572
|
|
|||
Stock-based compensation
|
404
|
|
|
0
|
|
|
404
|
|
|||
Release of vested RSUs, including tax effects
|
(165
|
)
|
|
0
|
|
|
(165
|
)
|
|||
Repurchases of common stock
|
(233
|
)
|
|
0
|
|
|
(233
|
)
|
|||
Cash dividends declared and other
|
(3,725
|
)
|
|
0
|
|
|
(3,725
|
)
|
|||
Equity at May 7, 2017
|
$
|
9,898
|
|
|
$
|
287
|
|
|
$
|
10,185
|
|
•
|
7,305,000
time-based RSUs that vest upon continued employment over specified periods of time;
|
•
|
127,000
performance-based RSUs, granted to executive officers of the Company, for which the performance targets have been met. The awards vest upon continued employment over specified periods of time; and
|
•
|
205,000
performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal
2018
, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are included in the table below and the Company has recognized compensation expense for these awards as it is currently deemed probable that the targets will be achieved.
|
|
Number of
Units
(in 000’s)
|
|
Weighted-Average
Grant Date Fair
Value
|
|||
Outstanding at September 3, 2017
|
8,199
|
|
|
$
|
128.15
|
|
Granted
|
3,722
|
|
|
156.19
|
|
|
Vested and delivered
|
(4,080
|
)
|
|
129.49
|
|
|
Forfeited
|
(204
|
)
|
|
138.42
|
|
|
Outstanding at May 13, 2018
|
7,637
|
|
|
$
|
140.83
|
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Stock-based compensation expense before income taxes
|
$
|
85
|
|
|
$
|
82
|
|
|
$
|
431
|
|
|
$
|
404
|
|
Less recognized income tax benefit
(1)
|
(19
|
)
|
|
(26
|
)
|
|
(98
|
)
|
|
(132
|
)
|
||||
Stock-based compensation expense, net of income taxes
|
$
|
66
|
|
|
$
|
56
|
|
|
$
|
333
|
|
|
$
|
272
|
|
(1)
|
For 2018, the tax benefit reflects the reduction in the U.S. federal statutory income tax rate from
35%
to
21%
.
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Net income attributable to Costco
|
$
|
750
|
|
|
$
|
700
|
|
|
$
|
2,091
|
|
|
$
|
1,760
|
|
Weighted average number of common shares used in basic net income per common share
|
438,740
|
|
|
438,817
|
|
|
438,576
|
|
|
438,650
|
|
||||
RSUs and other
|
2,975
|
|
|
2,239
|
|
|
2,807
|
|
|
2,095
|
|
||||
Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share
|
441,715
|
|
|
441,056
|
|
|
441,383
|
|
|
440,745
|
|
|
United States
Operations
|
|
Canadian
Operations
|
|
Other
International
Operations
|
|
Total
|
||||||||
Twelve Weeks Ended May 13, 2018
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
23,475
|
|
|
$
|
4,647
|
|
|
$
|
4,239
|
|
|
$
|
32,361
|
|
Operating income
|
682
|
|
|
210
|
|
|
175
|
|
|
1,067
|
|
||||
Depreciation and amortization
|
242
|
|
|
31
|
|
|
54
|
|
|
327
|
|
||||
Additions to property and equipment
|
468
|
|
|
42
|
|
|
75
|
|
|
585
|
|
||||
Twelve Weeks Ended May 7, 2017
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
21,172
|
|
|
$
|
4,069
|
|
|
$
|
3,619
|
|
|
$
|
28,860
|
|
Operating income
|
654
|
|
|
172
|
|
|
142
|
|
|
968
|
|
||||
Depreciation and amortization
|
245
|
|
|
28
|
|
|
47
|
|
|
320
|
|
||||
Additions to property and equipment
|
363
|
|
|
40
|
|
|
137
|
|
|
540
|
|
||||
Thirty-six Weeks Ended May 13, 2018
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
69,975
|
|
|
$
|
14,163
|
|
|
$
|
13,027
|
|
|
$
|
97,165
|
|
Operating income
|
1,818
|
|
|
652
|
|
|
564
|
|
|
3,034
|
|
||||
Depreciation and amortization
|
756
|
|
|
94
|
|
|
156
|
|
|
1,006
|
|
||||
Additions to property and equipment
|
1,323
|
|
|
156
|
|
|
434
|
|
|
1,913
|
|
||||
Net property and equipment
|
12,924
|
|
|
1,829
|
|
|
4,425
|
|
|
19,178
|
|
||||
Total assets
|
27,062
|
|
|
4,248
|
|
|
8,295
|
|
|
39,605
|
|
||||
Thirty-six Weeks Ended May 7, 2017
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
63,313
|
|
|
$
|
12,397
|
|
|
$
|
11,015
|
|
|
$
|
86,725
|
|
Operating income
|
1,680
|
|
|
543
|
|
|
438
|
|
|
2,661
|
|
||||
Depreciation and amortization
|
712
|
|
|
81
|
|
|
136
|
|
|
929
|
|
||||
Additions to property and equipment
|
1,147
|
|
|
206
|
|
|
370
|
|
|
1,723
|
|
||||
Net property and equipment
|
12,139
|
|
|
1,612
|
|
|
3,784
|
|
|
17,535
|
|
||||
Total assets
|
24,356
|
|
|
4,014
|
|
|
7,261
|
|
|
35,631
|
|
||||
Year Ended September 3, 2017
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
93,889
|
|
|
$
|
18,775
|
|
|
$
|
16,361
|
|
|
$
|
129,025
|
|
Operating income
|
2,644
|
|
|
841
|
|
|
626
|
|
|
4,111
|
|
||||
Depreciation and amortization
|
1,044
|
|
|
124
|
|
|
202
|
|
|
1,370
|
|
||||
Additions to property and equipment
|
1,714
|
|
|
277
|
|
|
511
|
|
|
2,502
|
|
||||
Net property and equipment
|
12,339
|
|
|
1,820
|
|
|
4,002
|
|
|
18,161
|
|
||||
Total assets
|
24,068
|
|
|
4,471
|
|
|
7,808
|
|
|
36,347
|
|
•
|
Net sales increased
12%
to
$31,624
, driven by an increase in comparable sales of
10%
and sales at 20 net new warehouses opened since the end of the
third
quarter of fiscal
2017
;
|
•
|
Membership fee revenue increased
14%
to
$737
, primarily due to the fee increase and sign-ups at existing and new warehouses;
|
•
|
Gross margin percentage decreased 46 basis points, due to the impact of gasoline price inflation on net sales, a shift in sales penetration to certain lower margin warehouse ancillary businesses from our core merchandise categories, and lower gross margin in our core merchandise categories;
|
•
|
SG&A expenses as a percentage of net sales decreased 32 basis points, due to the impact of gasoline price inflation and leveraging increased net sales;
|
•
|
Net income increased
7%
to
$750
, or
$1.70
per diluted share, compared to
$700
, or
$1.59
per diluted share in
2017
. The prior year results were positively impacted by an $82 tax benefit, or $0.19 per diluted share;
|
•
|
On
April 24, 2018
, our Board of Directors declared a quarterly cash dividend of
$0.57
per share, an increase from $0.50 per share, which was paid on
May 25, 2018
; and
|
•
|
Subsequent to the end of the quarter, we announced that effective in June 2018, a portion of the savings generated from the Tax Cuts and Jobs Act (the “2017 Tax Act”) will be used to benefit the majority of our U.S. hourly employees by increasing their wages. The estimated annualized pre-tax cost of these increases is approximately $110-$120.
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Net Sales
|
$
|
31,624
|
|
|
$
|
28,216
|
|
|
$
|
95,020
|
|
|
$
|
84,815
|
|
Changes in net sales:
|
|
|
|
|
|
|
|
||||||||
U.S.
|
11
|
%
|
|
8
|
%
|
|
11
|
%
|
|
5
|
%
|
||||
Canada
|
14
|
%
|
|
5
|
%
|
|
14
|
%
|
|
7
|
%
|
||||
Other International
|
17
|
%
|
|
8
|
%
|
|
18
|
%
|
|
4
|
%
|
||||
Total Company
|
12
|
%
|
|
8
|
%
|
|
12
|
%
|
|
6
|
%
|
||||
Changes in comparable sales:
|
|
|
|
|
|
|
|
||||||||
U.S.
|
10
|
%
|
|
6
|
%
|
|
9
|
%
|
|
3
|
%
|
||||
Canada
|
11
|
%
|
|
2
|
%
|
|
10
|
%
|
|
5
|
%
|
||||
Other International
|
12
|
%
|
|
4
|
%
|
|
13
|
%
|
|
0
|
%
|
||||
Total Company
|
10
|
%
|
|
5
|
%
|
|
10
|
%
|
|
3
|
%
|
||||
Changes in comparable sales excluding the impact of changes in foreign exchange rates and gasoline prices:
|
|
|
|
|
|
|
|
||||||||
U.S.
|
8
|
%
|
|
5
|
%
|
|
7
|
%
|
|
3
|
%
|
||||
Canada
|
5
|
%
|
|
3
|
%
|
|
4
|
%
|
|
3
|
%
|
||||
Other International
|
6
|
%
|
|
6
|
%
|
|
7
|
%
|
|
4
|
%
|
||||
Total Company
|
7
|
%
|
|
5
|
%
|
|
7
|
%
|
|
3
|
%
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Membership fees
|
$
|
737
|
|
|
$
|
644
|
|
|
$
|
2,145
|
|
|
$
|
1,910
|
|
Membership fees as a percentage of net sales
|
2.33
|
%
|
|
2.28
|
%
|
|
2.26
|
%
|
|
2.25
|
%
|
||||
Total paid members as of quarter end (000's)
|
50,900
|
|
|
48,600
|
|
|
—
|
|
|
—
|
|
||||
Total cardholders as of quarter end (000's)
|
93,000
|
|
|
88,900
|
|
|
—
|
|
|
—
|
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Net sales
|
$
|
31,624
|
|
|
$
|
28,216
|
|
|
$
|
95,020
|
|
|
$
|
84,815
|
|
Less merchandise costs
|
28,131
|
|
|
24,970
|
|
|
84,481
|
|
|
75,185
|
|
||||
Gross margin
|
$
|
3,493
|
|
|
$
|
3,246
|
|
|
$
|
10,539
|
|
|
$
|
9,630
|
|
Gross margin percentage
|
11.05
|
%
|
|
11.51
|
%
|
|
11.09
|
%
|
|
11.35
|
%
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
SG&A expenses
|
$
|
3,155
|
|
|
$
|
2,907
|
|
|
$
|
9,613
|
|
|
$
|
8,827
|
|
SG&A expenses as a percentage of net sales
|
9.98
|
%
|
|
10.30
|
%
|
|
10.12
|
%
|
|
10.41
|
%
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Preopening expenses
|
$
|
8
|
|
|
$
|
15
|
|
|
$
|
37
|
|
|
$
|
52
|
|
Warehouse openings, including relocations
|
|
|
|
|
|
|
|
||||||||
United States
|
0
|
|
|
1
|
|
|
7
|
|
|
9
|
|
||||
Canada
|
0
|
|
|
1
|
|
|
1
|
|
|
4
|
|
||||
Other International
|
2
|
|
|
1
|
|
|
2
|
|
|
3
|
|
||||
Total warehouse openings, including relocations
|
2
|
|
|
3
|
|
|
10
|
|
|
16
|
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Interest expense
|
$
|
37
|
|
|
$
|
21
|
|
|
$
|
111
|
|
|
$
|
81
|
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Interest income
|
$
|
16
|
|
|
$
|
12
|
|
|
$
|
45
|
|
|
$
|
31
|
|
Foreign-currency transaction gains (losses), net
|
20
|
|
|
3
|
|
|
10
|
|
|
(4
|
)
|
||||
Other, net
|
5
|
|
|
3
|
|
|
15
|
|
|
13
|
|
||||
Interest income and other, net
|
$
|
41
|
|
|
$
|
18
|
|
|
$
|
70
|
|
|
$
|
40
|
|
|
12 Weeks Ended
|
|
36 Weeks Ended
|
||||||||||||
|
May 13,
2018 |
|
May 7,
2017 |
|
May 13,
2018 |
|
May 7,
2017 |
||||||||
Provision for income taxes
|
$
|
309
|
|
|
$
|
259
|
|
|
$
|
867
|
|
|
$
|
838
|
|
Effective tax rate
|
28.8
|
%
|
|
26.8
|
%
|
|
29.0
|
%
|
|
32.0
|
%
|
|
36 Weeks Ended
|
||||||
|
May 13,
2018 |
|
May 7,
2017 |
||||
Net cash provided by operating activities
|
$
|
4,220
|
|
|
$
|
4,892
|
|
Net cash used in investing activities
|
(1,852
|
)
|
|
(1,550
|
)
|
||
Net cash used in financing activities
|
(1,014
|
)
|
|
(2,141
|
)
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Programs
(1)
|
|
Maximum Dollar Value of Shares that May Yet be Purchased Under the Programs
(1)
|
||||||
February 19, 2018 - March 18, 2018
|
85,000
|
|
|
$
|
188.83
|
|
|
85,000
|
|
|
$
|
2,555
|
|
March 19, 2018 - April 15, 2018
|
102,000
|
|
|
185.21
|
|
|
102,000
|
|
|
2,536
|
|
||
April 16, 2018 - May 13, 2018
|
103,000
|
|
|
194.78
|
|
|
103,000
|
|
|
2,516
|
|
||
Total third quarter
|
290,000
|
|
|
$
|
189.66
|
|
|
290,000
|
|
|
|
(1)
|
Our stock repurchase program is conducted under a $4,000 authorization approved by of our Board of Directors in April 2015, which expires in April 2019.
|
|
|
|
|
|
|
Incorporated by Reference
|
||||
Exhibit
Number
|
|
Exhibit Description
|
|
Filed
Herewith
|
|
Form
|
|
Period Ending
|
|
Filing Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
2/15/2015
|
|
3/11/2015
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
|
|
11/2/2017
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
x
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
x
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
x
|
|
|
|
|
|
|
|
C
OSTCO
W
HOLESALE
C
ORPORATION
(Registrant)
|
||
|
|
|
|
June 6, 2018
|
By
|
|
/s/ W. C
RAIG
J
ELINEK
|
Date
|
|
|
W. Craig Jelinek
President, Chief Executive Officer and Director
|
|
|
|
|
June 6, 2018
|
By
|
|
/s/ R
ICHARD
A. G
ALANTI
|
Date
|
|
|
Richard A. Galanti
Executive Vice President, Chief Financial Officer and Director
|
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