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COST · COSTCO WHOLESALE CORP /NEW

33 filings

10-K

COST 10-K Annual Reports

COSTCO WHOLESALE CORP /NEW - 33 annual reports

Filing record · 2016–202610-K1210-Q328-K130

2026
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 30, 2026
Costco Wholesale Corporation's 2026 Form 10-K highlights a year of robust growth and continued expansion. The company reported a 10% increase in net sales, reaching $297.2 billion, driven by strong comparable sales growth and the addition of 25 net new warehouses globally. Membership fee revenue also saw a healthy 11% rise, underscoring the loyalty and value proposition offered to its members. Despite a slight decrease in gross margin percentage, the company's operational efficiencies and strategic pricing helped maintain a healthy overall financial performance, with net income increasing by 14% to $9.2 billion. The report emphasizes Costco's consistent strategy of offering high-quality merchandise at low prices, supported by efficient operations and a strong membership model. The company continues to invest in its physical footprint and digital capabilities, indicating a commitment to both its traditional warehouse model and evolving e-commerce offerings. Management also highlighted a significant increase in capital expenditures for fiscal year 2027, signaling aggressive plans for continued expansion and infrastructure improvements to support future growth.
Oct 7, 2026
2025
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 31, 2025
Costco Wholesale Corporation (COST) has reported strong performance for the fiscal year ending August 31, 2025, with net sales increasing by 8% to $269.9 billion. This growth was driven by a 6% increase in comparable sales, reflecting higher shopping frequency and a modest increase in average ticket size. Membership fee revenue also saw a significant 10% jump, boosted by new member acquisitions and fee increases, underscoring the continued loyalty and value proposition for Costco members. The company expanded its physical footprint by opening 24 net new warehouses, contributing to overall sales growth. Despite inflationary pressures impacting merchandise costs, Costco managed to improve its gross margin percentage by 20 basis points, partly due to strong performance in fresh foods and its co-branded credit card program. Net income rose by 10% to $8.1 billion, translating to $18.21 per diluted share. The company also demonstrated a commitment to shareholders through a 12% increase in its quarterly cash dividend.
Oct 8, 2025
2024
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 1, 2024
Costco Wholesale Corporation (COST) reported its fiscal year 2024 results, demonstrating continued growth and operational resilience. The company expanded its global footprint by opening 30 new warehouses, contributing to a 5% increase in net sales, reaching $249.6 billion. This growth was driven by both comparable sales increases and contributions from new store openings, despite a slightly shorter fiscal year. Membership fee revenue also saw a healthy 5% rise, reflecting strong member loyalty and successful upgrades to Executive memberships. Key financial highlights include a 17% increase in net income to $7.4 billion and a significant improvement in gross margin percentage, up 35 basis points. This margin expansion was bolstered by contributions from ancillary businesses like e-commerce and gasoline, as well as operational efficiencies and the absence of prior-year one-time charges. The company also returned substantial value to shareholders through a special cash dividend and a 14% increase in its quarterly cash dividend, underscoring its financial strength and commitment to shareholder returns. Despite ongoing investments in wage increases and operational improvements, Costco maintained its focus on providing value to its members.
Oct 9, 2024
2023
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 3, 2023
Costco Wholesale Corporation (COST) reported strong performance in its 10-K filing for the fiscal year ending September 3, 2023. The company demonstrated robust revenue growth, driven by both new warehouse openings and an increase in comparable sales. Membership fee revenue also saw a significant rise, indicating sustained member loyalty and a growing member base, particularly with the strong penetration of its Executive membership tier. The company effectively managed gross margins despite inflationary pressures, aided by a smaller LIFO charge and performance in core merchandise categories. While selling, general, and administrative expenses as a percentage of net sales increased due to wage growth and lower sales growth in certain areas, overall profitability remained strong with a notable increase in net income. Costco also continued its capital allocation strategy through share repurchases and a dividend increase. The company's expansive global footprint, with a growing number of warehouses and continued international expansion, positions it for ongoing growth. Management expresses confidence in the company's liquidity and ability to meet its capital requirements.
Oct 11, 2023
2022
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 28, 2022
Costco Wholesale Corporation's (COST) 2022 10-K filing showcases a strong year of growth, with net sales increasing by 16% to $222.7 billion, driven by a robust 14% increase in comparable sales and the opening of 26 new warehouses. Membership fee revenue also saw a healthy 9% rise, indicating continued member loyalty and growth. Despite inflationary pressures impacting merchandise costs, which led to a decrease in gross margin percentage, the company effectively managed selling, general, and administrative (SG&A) expenses, which decreased as a percentage of net sales. This efficiency, coupled with solid sales growth, resulted in a 17% increase in net income to $5.84 billion, or $13.14 per diluted share. The company continues to expand its global footprint, with strategic investments in new warehouses and e-commerce capabilities. Costco's business model, centered on offering low prices and high value to its members, remains a key differentiator in a competitive retail landscape. The report highlights the company's commitment to its employees, strategic expansion plans, and its resilience in navigating supply chain challenges and economic uncertainties. Investors can find reassurance in Costco's consistent sales growth, effective cost management, and strong membership base.
Oct 5, 2022
2021
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 29, 2021
Costco Wholesale Corporation (COST) reported strong performance for the fiscal year ending August 29, 2021, characterized by robust net sales growth of 18% to $192.05 billion. This increase was driven by a solid 16% rise in comparable sales and contributions from newly opened warehouses. Membership fee revenue also saw a healthy increase of 9%, reflecting continued member loyalty and upgrades to the premium Executive membership. The company effectively managed expenses, with Selling, General, and Administrative (SG&A) costs decreasing as a percentage of net sales by 40 basis points, attributed to sales leverage and reduced COVID-19 related wage expenses. Despite a slight decrease in gross margin percentage by seven basis points, largely due to a shift in sales mix towards ancillary services, overall profitability improved significantly. Net income grew by 25% to $5.007 billion, with diluted earnings per share rising to $11.27. Costco continued its strategic expansion, opening 22 new warehouses during the fiscal year, and demonstrated a commitment to shareholder returns through special and quarterly cash dividends, alongside an active share repurchase program. The company also noted ongoing impacts from supply chain constraints due to the COVID-19 pandemic but maintained a positive outlook on liquidity and capital resources.
Oct 6, 2021
2020
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 30, 2020
Costco Wholesale Corporation's (COST) 2020 10-K filing reveals a robust financial performance, marked by strong net sales growth of 9% to $163.2 billion, primarily driven by an 8% increase in comparable sales and contributions from newly opened warehouses. The company demonstrated resilience despite the challenges posed by the COVID-19 pandemic, which impacted certain ancillary businesses but was offset by strong performance in core merchandise categories like food and sundries, and fresh foods. Key to Costco's sustained success is its membership model, which saw membership fee revenue increase by 6% to $3.5 billion, supported by high renewal rates of 91% in the U.S. and Canada and 88% worldwide. The company also strategically managed its operating expenses, with SG&A as a percentage of net sales decreasing by 3 basis points, and saw an 18-basis point increase in gross margin percentage. Despite incremental costs associated with COVID-19, such as increased wages and sanitation, the company reported a 9% increase in net income to $4.0 billion, translating to diluted earnings per share of $9.02. Significant strategic investments include the acquisitions of Innovel Solutions and a stake in Navitus Health Solutions, bolstering logistics and pharmacy benefit management capabilities.
Oct 7, 2020
2019
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 1, 2019
Costco Wholesale Corporation's 2019 10-K filing reveals a company demonstrating steady growth and operational efficiency. The company reported an 8% increase in net sales, reaching $149.35 billion, driven by a 6% rise in comparable sales and contributions from new warehouse openings. Membership fee revenue also saw a healthy 7% increase, underscoring the loyalty and value proposition offered to its member base, with global renewal rates remaining robust at 88%. The company continues to execute its growth strategy by opening new warehouses, including its first in China, and investing in its e-commerce capabilities. Financially, Costco maintained strong operational control, with selling, general, and administrative expenses as a percentage of net sales showing only a marginal increase. The effective tax rate significantly decreased due to the Tax Cuts and Jobs Act, contributing to a 17% increase in net income, which reached $3.66 billion, or $8.26 per diluted share. The company also returned capital to shareholders through increased dividends and initiated a new $4 billion share repurchase program, signaling confidence in its financial health and future prospects. The company also successfully remediated a previously identified material weakness in internal IT controls.
Oct 11, 2019
2018
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 2, 2018
Costco Wholesale Corporation's 2018 10-K report details a year of robust growth, with net sales increasing by 10% to $138.4 billion, driven by a strong 9% comparable sales increase and the opening of 25 new warehouses. Membership fee revenue also saw a significant 10% rise to $3.1 billion, bolstered by a prior year's annual fee increase and continued member sign-ups, highlighting the stickiness of Costco's membership model. The company's operational efficiency is reflected in a 24 basis point decrease in SG&A expenses as a percentage of net sales. Despite a 29 basis point decrease in gross margin percentage, largely due to the impact of gasoline price inflation and a shift towards lower-margin ancillary businesses, the overall financial health remains strong. Net income attributable to Costco grew by 17% to $3.13 billion, or $7.09 per diluted share. Investors should note the ongoing warehouse expansion, with plans for approximately 20 net new warehouses in the upcoming year, and a significant remaining authorization of $2.43 billion for share repurchases, indicating a commitment to returning value to shareholders. A key point of attention for investors is the identified material weakness in internal IT controls related to user access and program change management, which the company is actively working to remediate.
Oct 26, 2018
2017
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 3, 2017
Costco's fiscal 2017 10-K (53 weeks ended September 3, 2017) shows a business that grew net sales 9% to $126.2 billion and total revenue to $129.0 billion, with net income attributable to Costco rising 14% to $2.68 billion, or $6.08 per diluted share. Growth was driven by a 4% increase in comparable sales, 28 new warehouses (741 total at year-end), and one extra week in the fiscal year. Membership fees rose 8% to $2.85 billion, supported by a June 2017 fee increase, 49.4 million paid members (up roughly 4%), and a 90% U.S./Canada renewal rate. Gross margin percentage held roughly flat at 11.33%, while SG&A fell to 10.26% of sales, aided by a one-time benefit from the renegotiated U.S. co-branded credit card agreement that management said will not recur at the same magnitude. Cash generation was strong, with operating cash flow of $6.7 billion, but that figure was flattered by roughly $1.7 billion of vendor payments accelerated into fiscal 2016. Costco paid a $7.00 special dividend in May 2017 (about $3.1 billion), funded with $3.8 billion of new senior notes, which pushed long-term debt up to $6.6 billion and cut stockholders' equity to $10.8 billion. The quarterly dividend was raised from $0.45 to $0.50, and the company repurchased about $473 million of stock. Management expects fiscal 2018 capital expenditures of $2.5 to $2.7 billion and up to 24 new warehouses, and it flagged that the new lease accounting standard will materially increase reported lease liabilities. Investors should weigh the solid top-line momentum and membership economics against concentration risk: U.S. and Canadian operations generated 87% and 85% of net sales and operating income, respectively, and California alone accounts for about 30% of U.S. net sales. Results also carry exposure to gasoline prices, foreign exchange (international operations contributed 36% of operating income), and the one-time items noted above, which make underlying year-over-year comparisons less clean.
Oct 18, 2017
2016-A
COSTCO WHOLESALE CORP /NEW Annual Report (Amendment), Year Ended Aug 28, 2016
Costco Wholesale Corporation's 2016 10-K filing highlights a year of modest sales growth, primarily driven by new warehouse openings, while comparable sales remained flat. The company navigated external pressures such as currency fluctuations and declining gasoline prices, which impacted reported sales and margins. Despite these challenges, Costco demonstrated resilience through a 4% increase in membership fee revenue, underscoring the strength of its subscription model. The company also continued its strategic expansion, opening 29 net new warehouses globally. Profitability saw a slight decrease due to the aforementioned factors and investments in information systems modernization and employee compensation, but the core business operations, particularly merchandise, showed underlying strength with a gross margin improvement when excluding gasoline impacts.
Oct 21, 2016
2016
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 28, 2016
Costco's fiscal 2016 10-K (52 weeks ended August 28, 2016) shows a company growing its top line steadily while margin and earnings pressure came mainly from external factors. Net sales rose 2% to $116.1 billion, but comparable sales were flat, as gasoline price deflation (about 193 basis points of drag) and unfavorable foreign currency movements (about 237 basis points) offset growth from new warehouses. Membership fee revenue grew 4% to $2.6 billion, supported by a 47.6 million paid member base and a 39% Executive member mix, though the worldwide renewal rate eased to 88%. Net income attributable to Costco fell 1% to $2.35 billion, or $5.33 per diluted share, versus $5.37 in 2015, which included a one-time tax benefit. Underlying profitability improved on a reported basis. Gross margin rose 26 basis points to 11.35% of net sales, largely because gasoline deflation lowered sales denominators, while SG&A rose 33 basis points to 10.40%, partly from investments in information systems modernization. Operating income grew about 1% to $3.67 billion. Cash flow was softer: operating cash flow fell to $3.29 billion from $4.29 billion, mainly because of roughly $1.7 billion in vendor payments accelerated into the last week of fiscal 2016 ahead of a new accounting system rollout. Capital spending of $2.65 billion, 29 net new warehouses, and a dividend increase to $0.45 quarterly were the main capital allocation actions. Management plans up to 31 openings and $2.6 to $2.8 billion of capex in 2017. The filing also flags concentration and legal risks. The U.S. and Canada generated 87% of net sales and 84% of operating income, and California alone accounted for 31% of U.S. net sales. International operations (27% of sales, 39% of operating income) carry currency exposure. Disclosed legal matters include a DEA inquiry into controlled-substance prescription fulfillment, unclaimed property examinations, and motor fuel temperature litigation. Management does not believe these will have a material adverse effect on financial position, though an individual quarter could be affected.
Oct 12, 2016
2015
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 30, 2015
Costco's fiscal 2015 10-K (52 weeks ended August 30, 2015) shows a company growing revenue steadily while margins were pressured by gasoline deflation and currency headwinds. Total revenue rose 3% to $116.2 billion, with net sales of $113.7 billion and membership fees of $2.5 billion (up 4%). Operating income grew 13% to $3.6 billion, and net income attributable to Costco increased 15% to $2.38 billion, or $5.37 per diluted share. Gross margin expanded 43 basis points to 11.09% of net sales, largely because falling gasoline prices lifted the percentage, while SG&A rose 18 basis points to 10.07%. Comparable warehouse sales grew only 1% on a reported basis (7% excluding currency and gasoline effects), reflecting a roughly $3.3 billion currency drag and a 22% drop in average gasoline prices. Capital allocation was heavily shareholder-focused. Costco paid a $5.00 special dividend in February 2015 (about $2.2 billion), raised its quarterly dividend from $0.355 to $0.40, and repurchased $494 million of stock under a new $4 billion authorization. Total dividends paid reached $2.9 billion, funded partly by a $1 billion senior notes issuance. Free cash flow remained positive, with operating cash flow of $4.3 billion against capital expenditures of $2.4 billion, and the company guided to $2.8-3.0 billion in fiscal 2016 capex and up to 32 new warehouses. Investors should weigh continued warehouse expansion (686 locations, 23 net openings) and membership strength (44.6 million paid members, 91% U.S./Canada renewal rate) against risks flagged in the filing. These include heavy dependence on U.S. and Canadian operations (88% of net sales), California concentration, foreign exchange exposure (international operations were 36% of operating income), a data breach at an online photo vendor, and a pending Citibank co-branded credit card transition that replaces American Express in 2016.
Oct 14, 2015
2014
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 31, 2014
Costco Wholesale's fiscal 2014 10-K (52 weeks ended August 31, 2014) shows a business that kept growing steadily while absorbing currency headwinds. Net sales rose 7% to $110.2 billion, and comparable warehouse sales grew 4% (6% excluding gasoline price and foreign currency effects). Membership fees rose 6% to $2.43 billion, supported by a worldwide renewal rate of about 87% (91% in the U.S. and Canada) and rising Executive membership penetration, now 39% of eligible cardholders. Net income attributable to Costco grew modestly to $2.06 billion, or $4.65 per diluted share, versus $4.63 in 2013. That 2013 comparison was flattered by a $62 million tax benefit tied to the special dividend, so underlying earnings growth was somewhat stronger than the headline figure suggests. Foreign currency was a meaningful drag, reducing diluted EPS by about $0.10, with the Canadian dollar and Japanese yen the main culprits. Profitability was stable rather than expanding. Gross margin widened only four basis points to 10.66% of net sales, and SG&A rose seven basis points to 9.89%, mainly from continued investment in information systems. The effective tax rate increased to 34.7% from 32.4%. Operating income grew 5.5% to $3.22 billion. Cash generation was strong, with operating cash flow of $3.98 billion against capital expenditures of $1.99 billion, leaving meaningful free cash flow. Management guided to $2.5 to $2.7 billion of capex in fiscal 2015 and up to 35 new warehouses, so cash deployment will remain heavy in the near term. For shareholders, the key items are the dividend increase to $0.355 per quarter from $0.31, the $2.72 billion of remaining buyback authorization, and balance sheet capacity with $7.3 billion of cash and short-term investments against $5.1 billion of long-term debt. The main risks are concentration in the U.S. (87% of net sales and operating income combined with Canada) and especially California (32% of U.S. sales), exposure to gasoline price swings, and a stock price that, per management, already reflects high expectations.
Oct 15, 2014
2013
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 1, 2013
Costco Wholesale's fiscal 2013 10-K (52 weeks ended September 1, 2013) shows a business that kept growing its top line while profitability rose more modestly. Net sales increased 6% to $102.9 billion, driven by a 6% increase in comparable warehouse sales and 26 new warehouses, bringing the fleet to 634 locations. Membership fee revenue grew 10% to $2.3 billion, supported by the November 2011/January 2012 fee increase and sign-ups, and the Executive membership program (38% of eligible cardholders) continued to gain share. Net income attributable to Costco rose 19% to $2.04 billion, or $4.63 per diluted share, though gross margin improved only 7 basis points to 10.62% of sales and SG&A was roughly flat at 9.82%. Note that fiscal 2012 included one extra week, which flatters some year-over-year comparisons, and the 2013 earnings benefited from a $62 million tax benefit tied to the special dividend. The most important capital allocation event was the $7.00 per share special dividend paid in December 2012 (about $3.05 billion), funded largely by $3.5 billion of new senior notes. As a result, total cash dividends declared rose to $8.17 per share from $1.03, and long-term debt increased to about $5.0 billion from $1.4 billion, while stockholders' equity fell to $10.8 billion from $12.4 billion. Share repurchases were minimal in 2013 ($34 million), with $3.1 billion remaining under the $4 billion authorization. Management expects to spend $2.3 to $2.5 billion in capital expenditures in fiscal 2014 and to open 30 to 36 warehouses. Key risks highlighted in the filing include heavy dependence on U.S. and Canadian operations (88% of net sales, with California alone at 23%), competition from warehouse clubs and general retailers, exposure to commodity and gasoline price swings, international currency and political risk (international operations were 28% of sales), and cybersecurity and payment-related exposures. Legal matters are described as immaterial individually, though a gender discrimination class action was settled in principle in October 2013.
Oct 16, 2013
2012
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 2, 2012
Costco Wholesale Corporation's 2012 Form 10-K details a financially robust year characterized by strong sales growth, driven by a 7% increase in comparable store sales and the successful integration of its Mexico operations. The company demonstrated effective cost management, with selling, general, and administrative expenses improving as a percentage of net sales. Membership fees saw a healthy increase, reflecting growth in member base and a recent price adjustment. Profitability improved, with net income rising by 16.9% and a corresponding increase in diluted earnings per share. Costco also continued its commitment to shareholder returns through dividends and share repurchases, while strategically investing in its global warehouse network. Key operational highlights include the full consolidation of Costco Mexico following the acquisition of the remaining 50% interest, which is expected to contribute to future growth. The company's membership model remains a cornerstone of its business, with high renewal rates indicating strong member loyalty. Strategic investments in technology and operational efficiencies are evident, positioning Costco for continued success in a competitive retail landscape. The report also addresses various risk factors, including competition, economic volatility, and operational challenges, underscoring the company's proactive approach to risk management.
Oct 19, 2012
2011
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 28, 2011
Costco Wholesale Corporation's 2011 10-K filing highlights a strong year of growth and operational performance, driven by a 14.2% increase in net sales to $87.05 billion. This growth was primarily fueled by a robust 10% increase in comparable warehouse sales, alongside contributions from 20 net new warehouse openings. The company demonstrated effective cost management, with selling, general, and administrative expenses decreasing as a percentage of net sales by 31 basis points. Membership fees also saw a healthy 10.4% increase, boosted by higher Executive membership penetration. Despite a slight decrease in gross margin percentage, primarily due to a LIFO inventory charge and the inclusion of lower-margin gasoline sales, net income attributable to Costco grew by 12.2% to $1.46 billion, resulting in diluted earnings per share of $3.30. The company also continued its commitment to shareholder returns through share repurchases and a notable increase in its quarterly cash dividend. Furthermore, the filing marks the initial consolidation of Costco's Mexico joint venture, which had a minor impact on total assets and revenue but no effect on net income per share, reflecting the company's expanding international presence. The leadership transition plan, with the announced retirement of CEO Jim Sinegal and the promotion of Craig Jelinek, was also a significant event disclosed.
Oct 14, 2011
2010
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 29, 2010
Costco Wholesale Corporation (COST) reported strong performance for the fiscal year ended August 29, 2010, with net sales increasing 9.1% to $76.3 billion, driven by a 7% rise in comparable store sales and the opening of new warehouses. The company highlighted a 10.3% increase in membership fees to $1.7 billion, benefiting from higher penetration of its Executive Membership program and a solid renewal rate of 88%. Net income saw a significant 20% jump to $1.3 billion, translating to diluted earnings per share of $2.92, up from $2.47 in the prior year. Costco's business model, characterized by low gross margins, high sales volume, and efficient operations, proved resilient amidst economic challenges. The company continued its expansion, planning for approximately 31 new warehouses in fiscal year 2011. Capital expenditures are expected to be around $1.6 billion, funded primarily through operating cash flows and existing cash reserves. The company also continued its share repurchase program, demonstrating a commitment to returning value to shareholders.
Oct 18, 2010
2009
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 30, 2009
Costco Wholesale Corporation's 2009 10-K filing reveals a challenging year marked by a 1.5% decrease in net sales to $69.9 billion, largely due to a 4% drop in comparable warehouse sales. This decline was exacerbated by significant gasoline price deflation and unfavorable foreign currency movements, which collectively impacted sales by approximately $4.6 billion. Despite the sales dip, the company maintained a strong membership base with a renewal rate of 87% and saw an increase in Executive Membership penetration. Key financial metrics indicate a 15% decrease in net income to $1.09 billion, or $2.47 per diluted share. This was influenced by a mix of factors including increased SG&A expenses as a percentage of sales due to lower sales volume and higher healthcare costs, partially offset by an improvement in gross margin as a percentage of net sales. The company continued its commitment to shareholder returns by increasing its quarterly cash dividend and actively repurchasing shares. Costco's robust balance sheet, ample liquidity, and strategic approach to managing operational costs and capital expenditures position it to navigate the prevailing economic conditions.
Oct 16, 2009
2008-A
COSTCO WHOLESALE CORP /NEW Annual Report (Amendment), Year Ended Aug 31, 2008
Costco Wholesale Corporation filed an amendment to its Annual Report on Form 10-K for the fiscal year ended August 31, 2008, primarily to correct a presentation in its Consolidated Statements of Cash Flows. The company demonstrated robust performance with a 12.5% increase in net sales to $70.98 billion, driven by an 8% comparable warehouse sales growth and the opening of 24 new warehouses. Membership fees saw a healthy 14.7% rise to $1.51 billion, bolstered by new memberships and increased Executive membership penetration. Gross margin remained stable at 10.53%, while Selling, General, and Administrative (SG&A) expenses as a percentage of net sales decreased. Net income grew by 18.5% to $1.28 billion, or $2.89 per diluted share. The company also continued its commitment to shareholders by repurchasing approximately $886.9 million of its common stock and increasing its quarterly cash dividend. Despite general economic uncertainties, Costco's business model appeared resilient, with strong operational execution and continued expansion.
Oct 17, 2008
2008
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 31, 2008
Costco Wholesale Corporation's 2008 10-K filing reveals a strong fiscal year with robust sales growth and continued expansion. Net sales increased by 12.5% to $70.98 billion, driven by an 8% increase in comparable warehouse sales and the opening of 24 net new warehouses. Membership fees saw a significant rise of 14.7% to $1.51 billion, bolstered by new member sign-ups and increased adoption of the higher-tier Executive Membership program. The company's operational efficiency is highlighted by a slight improvement in gross margin and a reduction in selling, general, and administrative (SG&A) expenses as a percentage of net sales. Financially, net income grew by 18.5% to $1.28 billion, or $2.89 per diluted share. The company also continued its commitment to shareholder returns through a 10% increase in its quarterly cash dividend and significant share repurchases totaling $886.9 million. Despite some investment-related impairments due to market volatility, the company's liquidity remains strong, with substantial cash and cash equivalents. The report also details ongoing legal proceedings, primarily related to labor and employment practices, which the company believes will not have a material adverse effect on its financial position.
Oct 16, 2008
2007-A
COSTCO WHOLESALE CORP /NEW Annual Report (Amendment), Year Ended Sep 2, 2007
Costco Wholesale Corporation's (COST) 2007 10-K filing, amended to correct minor dating errors in the auditor's report, provides a comprehensive overview of its financial performance and operational highlights for the fiscal year ended September 2, 2007. The company demonstrated robust revenue growth, reaching over $64.4 billion, driven by net sales and a significant contribution from membership fees. Operating income remained strong, reflecting effective cost management despite investments in expansion and preopening expenses. Financially, Costco maintained a solid balance sheet with total assets exceeding $19.6 billion. Key financial activities included substantial investments in property and equipment, indicating continued expansion, and significant share repurchases demonstrating a commitment to returning value to shareholders. The company's cash flow from operations remained healthy, supporting its investing and financing activities. Investors can note the consistent increase in dividends per share and the company's strong position in the retail landscape.
Dec 21, 2007
2007
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 2, 2007
Costco Wholesale Corporation's 2007 10-K report showcases a company demonstrating consistent growth and operational efficiency, despite facing typical retail sector challenges. The company reported a 7.0% increase in net sales to $63.09 billion, driven by a 6% rise in comparable warehouse sales and the opening of 30 new warehouses. Membership fees saw a significant 10.5% increase, reaching $1.31 billion, largely due to a prior year price hike. Despite a slight decrease in gross margin percentage and an increase in SG&A expenses as a percentage of sales, the company maintained a strong financial position. Key financial highlights include a net income of $1.08 billion, with earnings per diluted share of $2.37. The company also actively engaged in share repurchases, spending approximately $1.98 billion to buy back 36.4 million shares. Costco's operational strategy, focusing on low prices, limited selection, and high inventory turnover, continues to be a core strength. The company also highlighted its expanding ancillary businesses, such as gas stations and pharmacies, which contribute to member loyalty and shopping frequency.
Oct 25, 2007
2006
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 3, 2006
Costco Wholesale Corporation's 2006 10-K report details a strong fiscal year marked by consistent sales growth and expansion. Net sales increased by 13.7% to $58.96 billion, driven by an 8% increase in comparable warehouse sales and the opening of 25 net new warehouses. The company also saw a healthy increase in membership fees, up 10.7% to $1.19 billion, reflecting successful membership growth and a recent $5 price increase on most U.S. and Canada memberships. Financially, Costco demonstrated robust operating income and net income growth, reaching $1.1 billion in net income, or $2.30 per diluted share. The company continued its commitment to shareholder returns through increased dividends and significant share repurchases, spending approximately $1.5 billion on buybacks. Costco's operational efficiency remains a key strength, with SG&A expenses as a percentage of net sales improving slightly, demonstrating effective cost management despite investments in growth and compensation.
Nov 17, 2006
2005
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 28, 2005
Costco Wholesale Corporation's 2005 10-K report highlights a year of robust growth and financial strength. The company achieved a 10% increase in net sales, reaching $51.86 billion, driven by a 7% rise in comparable warehouse sales and the addition of 16 new warehouses. Membership fees also saw a healthy 11.6% increase, underscoring strong member loyalty and program penetration. Financially, net income grew by a significant 20.5% to $1.06 billion, or $2.18 per diluted share. This growth was achieved despite a slight decrease in gross margin percentage, which was attributed to a shift in sales mix towards lower-margin items like gasoline and increased costs associated with the Executive Membership program. The company also demonstrated a commitment to shareholder returns through a quarterly cash dividend increase and a substantial share repurchase program, signaling confidence in its financial stability and future prospects.
Nov 10, 2005
2004
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 29, 2004
Costco Wholesale Corporation's 2004 10-K report indicates a strong financial performance with a 13.1% increase in net sales, reaching $47.1 billion. This growth was driven by a comparable warehouse sales increase of 10% and the successful opening of 20 new warehouses. Membership fees also saw a healthy rise of 12.7%, attributed to new member acquisitions, increased penetration of the Executive Membership program, and high renewal rates. The company achieved net income growth of 22.4%, totaling $882.4 million, or $1.85 per diluted share. This financial strength allowed Costco to initiate its first quarterly cash dividend in fiscal year 2004, signaling a commitment to returning value to shareholders. The company also demonstrated effective cost management, with improvements in gross margin and a reduction in selling, general, and administrative expenses as a percentage of net sales. Expansion remains a key focus, with plans for approximately 40 new warehouses in fiscal year 2005 across the U.S., Canada, and international markets.
Nov 12, 2004
2003
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 31, 2003
Costco Wholesale Corporation (COST) filed its 2003 10-K report, highlighting continued growth and operational efficiency. The company reported robust net sales of $41.7 billion for the fiscal year ended August 31, 2003, a 10% increase year-over-year, driven by comparable warehouse sales and the opening of 23 net new warehouses. Net income rose 3% to $721 million, translating to $1.53 per diluted share. The company's membership model continues to be a strong contributor, with revenue from membership fees and other sources increasing by 11% and member renewal rates holding steady at 86%. Costco's strategy of offering a limited selection of high-quality merchandise at low prices, combined with efficient operations and rapid inventory turnover, remains effective in driving sales volume and profitability despite lower gross margins compared to traditional retailers. The company also continues its disciplined expansion, with plans for further warehouse openings in the U.S., Canada, and internationally.
Nov 21, 2003
2002
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Sep 1, 2002
Costco Wholesale Corporation (COST) filed its annual report for the fiscal year ended September 1, 2002, showcasing robust growth and a strong operational model. The company demonstrated an 11% increase in net sales, reaching $37.99 billion, and a 16% rise in net income to $700 million. This performance was driven by consistent sales growth at existing locations and the successful integration of 29 new warehouses opened during the fiscal year. Key to Costco's success remains its membership model, with strong renewal rates and a growing penetration of the Executive Membership program contributing to a 17% increase in membership fee revenue. The company also highlighted improvements in gross margin percentage due to better merchandise sourcing and operational efficiencies, though this was partially offset by the costs associated with the Executive Membership reward program. Costco continues its strategic expansion, with plans to open additional warehouses in the U.S., Canada, and internationally, funded through a combination of operating cash flow and existing credit facilities.
Nov 22, 2002
1999
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 29, 1999
Costco Wholesale Corporation's 10-K for the fiscal year ended August 29, 1999 shows a company in strong expansion mode, with net sales up 13% to $26.98 billion and total revenue of $27.46 billion. Operating income rose 9% to $860 million before the charges discussed below, and comparable warehouse sales grew at a 10% annual rate, up from 8% the prior year. Fiscal 1999 reported net income fell to $397.3 million ($1.73 diluted EPS) from $459.8 million ($2.03), but this was driven by two one-time items: a $118.0 million after-tax non-cash charge from switching membership fee accounting from cash to deferred recognition, and a $50 million fourth-quarter provision for impaired assets and warehouse relocation costs. Excluding these items, net income would have been $545.3 million, or $2.36 per diluted share, roughly a 20% increase over the adjusted prior year. The balance sheet remains conservative. Stockholders' equity reached $3.53 billion, long-term debt was $919 million (mostly a 7 1/8% senior note and zero-coupon convertible notes), and cash plus short-term investments totaled about $697 million. Membership base stood at roughly 3.9 million business and 9.6 million Gold Star members, and the company operated 292 warehouses across the U.S., Canada, the U.K., Asia, and a 50%-owned Mexico joint venture. Management plans $800-950 million in domestic capital spending and $100-150 million internationally for fiscal 2000, opening 20 to 25 new U.S. and Canadian warehouses. The board also authorized a $500 million share repurchase program over three years, though no shares had been bought back as of year-end. Costco pays no regular dividend, and its credit agreements limit dividends to 50% of annual net income. For investors, the key points are sustained double-digit sales growth, improving comparable sales, and a membership model that generates recurring fee revenue, weighed against a low gross margin (10.4%) that depends on keeping operating costs tight. The Year 2000 remediation was described as substantially complete at a cost under $7.5 million. The accounting change and impairment charges are the main items to separate from underlying performance when evaluating the company's earnings trajectory.
Nov 24, 1999
1997-A
COSTCO WHOLESALE CORP /NEW Annual Report (Amendment), Year Ended Aug 31, 1997
This is Amendment No. 1 (Form 10-K/A) to Costco Companies, Inc.'s annual report for the fiscal year ended August 31, 1997, signed March 17, 1998. The amendment is narrow. It contains only Item 13 (Certain Relationships and Related Transactions) and the signature page, with no financial statements, MD&A, business description, or risk factors, so it cannot support an assessment of revenue, margins, profitability, cash flow, or balance sheet strength. The filing reports an aggregate market value of non-affiliate common stock of about $7.99 billion as of October 31, 1997, and 213,867,058 shares outstanding on that date. Investors should review the original 10-K for fiscal 1997 for operating and financial results. The disclosed related-party items are modest in dollar terms relative to a company of this size. They include underwriting by DLJ, whose managing director Hamilton E. James sits on Costco's board, for the Zero Coupon Convertible Subordinated Notes due 2017. They also include about $1.17 million in compensation paid to Meisenbach Capital Management, a firm controlled by principal shareholder John W. Meisenbach, for benefits consulting. Several directors and officers had relatives on the payroll or doing business with the company. Governance-minded investors may note these arrangements, but the amounts disclosed do not appear material to the company's overall financial position.
Mar 18, 1998
1997
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 31, 1997
Costco Companies, Inc. (NASDAQ: COST) reported fiscal 1997 (52 weeks ended August 31, 1997) net income of $312.2 million, or $1.46 per fully diluted share, up 28% from $248.8 million, or $1.22, in fiscal 1996. Net sales rose 12% to $21.48 billion, and comparable warehouse sales grew at a 9% annual rate versus 5% the prior year. Results absorbed a non-cash, pre-tax $65 million SFAS 121 impairment charge (about $0.17 per share); excluding it, fully diluted EPS would have been $1.63. Operating income grew 18% to $580.7 million, and gross margin widened to 10.10% of sales from 9.73%, reflecting purchasing power, lower shrink, and depot use. The balance sheet strengthened materially. Long-term debt fell to $917 million from $1.23 billion as convertible subordinated debentures were called and largely converted into common stock, and stockholders' equity rose to $2.47 billion from $1.78 billion. The company issued $900 million (face value) of 3 1/2% zero coupon convertible notes for $449.6 million of proceeds. Cash rose to $175.5 million and operating cash flow reached $590 million, which funded $553 million of capital expenditures. Costco ended the year with 261 warehouses (200 U.S., 54 Canada, six U.K., one Taiwan), plus 13 Mexico warehouses through a 50%-owned joint venture. Looking ahead, management plans roughly $400-450 million of U.S. and Canadian capital spending and $80-100 million for international expansion in fiscal 1998, including about 20 new U.S./Canada warehouses. The company pays no regular dividend. The main risks disclosed are the competitive warehouse-club and discount landscape, a class action tied to The Price Company's 1992 stock disclosures (which management believes lacks merit), and the pending Hechinger acquisition of seven Michigan locations, which is subject to third-party approvals. Sales for the nine weeks ended November 2, 1997 rose 11%, with comparable sales up 8%.
Nov 10, 1997
1995-A
COSTCO WHOLESALE CORP /NEW Annual Report (Amendment), Year Ended Sep 3, 1995
This document is not the complete 10-K described in the request. It is Amendment No. 1 (Form 10-K/A) of Price/Costco, Inc. (the registrant named on the cover, not COSTCO WHOLESALE CORP /NEW) for the fiscal year ended September 3, 1995. It contains only the cover page and Item 11 (Executive Compensation), so it has no revenue, earnings, balance sheet, or business-segment data. The excerpt also does not show a March 15, 1996 filing date. The cover reports an aggregate non-affiliate market value of about $2.86 billion as of October 31, 1995, with 195,235,264 common shares outstanding. The compensation disclosures show a modest executive pay structure. CEO James D. Sinegal and Chairman Jeffrey H. Brotman each earned a $305,769 salary in fiscal 1995 (a 53-week year) with no cash bonus, and each received 50,000 stock options. Other named executives received bonuses of $37,000 to $44,358 and 20,000 options each. Options vest 20% per year over five years and expire after ten years, with an exercise price of $13.3125 per share, equal to fair market value on the grant date. The company granted 3,515,776 options across all employees in fiscal 1995. The filing also discloses related-party and transaction items relevant to investors. Compensation committee member John W. Meisenbach's firm, MCM Financial, received $580,773 in fiscal 1995 for benefits consulting and insurance services. Compensation committee member Hamilton E. James is a managing director of DLJ, which advised on the Exchange Transaction, a spin-off of certain assets to Price Enterprises, and on a $300 million senior note offering. For a complete picture of operations and financial condition, investors should review the original full 10-K for the fiscal year.
Mar 15, 1996
1994
COSTCO WHOLESALE CORP /NEW Annual Report, Year Ended Aug 28, 1994
This 10-K covers fiscal 1994 (52 weeks ended August 28, 1994) for PriceCostco, Inc., the holding company formed in the October 1993 merger of The Price Company and Costco Wholesale. The filing shows a net loss of $112.4 million, or $0.51 per share, versus net income of $223.2 million in fiscal 1993. The loss reflects a $120 million pre-tax merger and restructuring charge and a $182.5 million estimated loss on disposal of discontinued non-club real estate operations. Excluding the merger charge, income from continuing operations was $190.9 million, or $0.87 per share, compared with $0.92 per share in fiscal 1993, so underlying earnings declined modestly. Operationally, net sales rose 6.6% to $16.16 billion, but comparable warehouse sales fell about 3% for a second straight year. Management attributed the decline to cannibalization from new openings, competition from Wal-Mart, Kmart, Smart & Final and supermarkets, deflation in several categories, a weak California economy, and a weak Canadian dollar. Sales in the eight weeks ended October 23, 1994 rose 11% with comparable sales up 1%, an early sign of stabilization. The company operated 221 warehouses at year end and plans 30 to 35 new U.S. and Canadian openings in fiscal 1995, with capital spending guided at $600 to $700 million in Item 1 (the MD&A gives a different split that sums to a similar range). The most significant structural event is the planned Exchange Transaction, under which PriceCostco will offer shareholders Price Enterprises shares in exchange for PriceCostco stock, spinning off its non-club real estate and certain international and Quest assets. The loss on disposal is an estimate based on an assumed $15.25 Price Enterprises share price and a fully subscribed offer, so the final charge will change with market value and take-up. Investors should also note the company pays no regular dividend, a working capital deficit of $113 million, and $801.9 million of long-term debt, mostly convertible subordinated debentures.
Nov 17, 1994