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.