01—Abstract
Summary
Summary of the 10-K/A filed October 17, 2008. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Net sales increased by 12.5% to $70.98 billion, driven by a strong 8% increase in comparable warehouse sales.
- Membership fees grew by 14.7% to $1.51 billion, reflecting membership growth and higher Executive membership penetration.
- Net income rose 18.5% to $1.28 billion, translating to diluted earnings per share of $2.89, a significant increase from the prior year.
- The company repurchased approximately $886.9 million of its common stock during the fiscal year, demonstrating a commitment to returning capital to shareholders.
- Costco continued its expansion strategy, opening a net of 24 new warehouses, indicating confidence in future growth.
- Gross margin remained strong and stable at approximately 10.53% of net sales, reflecting efficient operations.
- The company increased its quarterly cash dividend, signaling financial health and confidence in future earnings.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2008, Costco Wholesale Corp kept $0.02.
- Revenue$72.48B100.0%
- Cost of revenue−$63.50B87.6%
- Gross profit$8.98B12.4%
- Operating costs−$7.01B9.7%
- Operating income$1.97B2.7%
- Interest, other & tax−$686.0M0.9%
- Net income$1.28B1.8%
Where FY2008 revenue went
$72.48B- Cost of revenue: $63.50B, 88% of revenue
- Net income: $1.28B, 1.8% of revenue
- SG&A: $6.95B, 9.6% of revenue
- Interest, other & tax: $686.0M, 0.9% of revenue
Kept 1.8% as net incomeNet income $1.28B · 1.8%Interest, other & tax $686.0M · 0.9%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2008filed October 17, 2008Financial Statements
| Revenue | $72.48B |
| Cost of Revenue | $63.50B |
| Gross Profit | $8.98B |
| SG&A Expenses | $6.95B |
| Operating Income | $1.97B |
| Interest Expense | $103.00M |
| Net Income | $1.28B |
| Shares Outstanding (Basic) | 434.44M |
| Shares Outstanding (Diluted) | 444.24M |
05—Questions
Frequently Asked Questions
What was the main reason for filing the 10-K/A amendment?
Costco Wholesale Corporation filed the 10-K/A amendment to correct a portion of the presentation in its Consolidated Statements of Cash Flows related to short-term borrowings.
How did Costco perform in terms of sales and profitability in fiscal year 2008?
Costco reported a 12.5% increase in net sales to $70.98 billion and an 18.5% increase in net income to $1.28 billion, with diluted earnings per share of $2.89, indicating strong financial performance despite a challenging economic environment.
What is Costco's strategy for returning capital to shareholders?
Costco returned capital to shareholders through a combination of stock repurchases, totaling approximately $886.9 million in fiscal year 2008, and by increasing its quarterly cash dividend, demonstrating a commitment to shareholder value.
How is Costco managing its expansion and growth?
Costco continued its growth by opening 24 net new warehouses during fiscal year 2008 and plans to spend approximately $1.7 billion in fiscal year 2009 for real estate, construction, and remodeling, indicating a continued focus on expanding its physical footprint.
06—Continue