Summary
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.
Financial Highlights
49 data points| Revenue | $77.95B |
| Cost of Revenue | $68.00B |
| Gross Profit | $9.95B |
| SG&A Expenses | $7.85B |
| Operating Income | $2.08B |
| Interest Expense | $111.00M |
| Net Income | $1.30B |
| EPS (Basic) | $2.97 |
| EPS (Diluted) | $2.92 |
| Shares Outstanding (Basic) | 438.61M |
| Shares Outstanding (Diluted) | 445.97M |
Key Highlights
- 1Net sales grew 9.1% to $76.3 billion, driven by a 7% increase in comparable store sales.
- 2Membership fees increased by 10.3% to $1.7 billion, boosted by Executive Membership penetration.
- 3Net income rose 20% to $1.3 billion, with diluted EPS reaching $2.92.
- 4The company opened 13 net new warehouses in fiscal year 2010 and plans for approximately 31 new openings in fiscal year 2011.
- 5Costco repurchased approximately $568 million of its common stock during the fiscal year.
- 6The quarterly cash dividend was increased by 14% to $0.205 per share.