Summary
Costco Wholesale Corporation (COST) reported its second quarter and year-to-date results for the period ending February 17, 2013. The company demonstrated robust sales growth, with net sales increasing by 8% in the quarter and 9% year-to-date, driven by a 5% comparable sales increase. Membership fees saw a significant rise of 15%, attributed to price increases and strong renewal rates. Net income showed substantial growth, up 39% to $547 million ($1.24 per diluted share) in the quarter, aided by a favorable tax benefit related to a special dividend distribution. The company also announced a special cash dividend of $7.00 per share paid in December 2012 and declared a regular quarterly dividend of $0.275 per share. Financially, Costco maintained a strong liquidity position with $5.65 billion in cash, cash equivalents, and short-term investments. Operating cash flow increased by $281 million year-over-year. The company also strategically managed its debt, issuing $3.5 billion in Senior Notes, primarily to fund the special dividend. Capital expenditures for the fiscal year are planned at approximately $2 billion, supporting new warehouse openings and system modernization. Despite ongoing legal proceedings, the company believes they will not materially impact its financial position.
Financial Highlights
47 data points| Revenue | $24.87B |
| Cost of Revenue | $21.77B |
| Gross Profit | $3.10B |
| SG&A Expenses | $2.36B |
| Operating Income | $738.00M |
| Interest Expense | $25.00M |
| Net Income | $547.00M |
| EPS (Basic) | $1.26 |
| EPS (Diluted) | $1.24 |
| Shares Outstanding (Basic) | 435.98M |
| Shares Outstanding (Diluted) | 439.81M |
Key Highlights
- 1Net sales increased by 8% to $24.3 billion in Q2 2013, with comparable sales up 5%.
- 2Membership fee revenue grew by 15% to $528 million, reflecting price adjustments and improved renewal rates.
- 3Net income rose significantly by 39% to $547 million ($1.24 per diluted share) in Q2 2013, boosted by a $62 million tax benefit.
- 4The company paid a special cash dividend of $7.00 per share in December 2012, totaling approximately $3.05 billion.
- 5Costco issued $3.5 billion in Senior Notes, with proceeds used mainly for the special dividend.
- 6Total liquidity (cash, cash equivalents, and short-term investments) stood at $5.65 billion as of February 17, 2013.
- 7Capital expenditures for fiscal 2013 are projected at $2 billion, supporting expansion and IT modernization.