Summary
Costco Wholesale Corporation (COST) reported strong performance for the quarter ending February 14, 2010. The company demonstrated robust top-line growth with net sales increasing by 11.3% year-over-year, driven by a healthy 9% increase in comparable warehouse sales and contributions from new store openings. Membership fees also saw a notable rise of 8.5%, indicating continued member loyalty and growth in the higher-tier Executive Membership program. Profitability improved significantly, with net income attributable to Costco rising by 24.9% to $299 million, translating to a diluted EPS of $0.67, up from $0.55 in the prior year. This growth was achieved despite increased SG&A expenses, which were partially offset by improved gross margins. The company also maintained a strong balance sheet with solid cash flows from operations, providing ample liquidity and supporting ongoing capital expenditures for expansion.
Financial Highlights
46 data points| Revenue | $18.74B |
| Cost of Revenue | $16.40B |
| Gross Profit | $2.35B |
| SG&A Expenses | $1.87B |
| Operating Income | $470.00M |
| Interest Expense | $26.00M |
| Net Income | $299.00M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 439.79M |
| Shares Outstanding (Diluted) | 446.92M |
Key Highlights
- 1Net sales increased by 11.3% to $18.36 billion compared to the prior year's quarter.
- 2Comparable warehouse sales grew by a strong 9%, indicating sustained customer traffic and spending.
- 3Membership fees increased by 8.5% to $386 million, reflecting growth in membership and the Executive program.
- 4Net income attributable to Costco surged by 24.9% to $299 million.
- 5Diluted earnings per share (EPS) rose to $0.67 from $0.55 in the same period last year.
- 6Operating cash flow remained robust at $1.36 billion for the first half of the fiscal year.
- 7The company announced a quarterly cash dividend of $0.18 per share.