Summary
Costco Wholesale Corporation reported strong financial performance for the first quarter of fiscal year 2018, ending November 25, 2017. Net sales surged by 13% to $31.1 billion, driven by a robust 10% increase in comparable sales across all segments. This growth reflects increased shopping frequency and higher average ticket prices, demonstrating continued customer loyalty and effective merchandising. Profitability saw a significant boost, with net income attributable to Costco rising 17% to $640 million, translating to diluted earnings per share of $1.45. This improvement was supported by strong revenue growth, effective expense management leading to a decrease in SG&A as a percentage of net sales, and a favorable impact from adopting a new accounting standard for stock-based compensation. The company also continued its capital allocation strategy, returning value to shareholders through dividends and share repurchases, signaling confidence in its operational strength and future prospects.
Financial Highlights
49 data points| Revenue | $31.81B |
| Cost of Revenue | $27.62B |
| Gross Profit | $4.19B |
| SG&A Expenses | $3.22B |
| Operating Income | $951.00M |
| Interest Expense | $37.00M |
| Net Income | $640.00M |
| EPS (Basic) | $1.46 |
| EPS (Diluted) | $1.45 |
| Shares Outstanding (Basic) | 437.96M |
| Shares Outstanding (Diluted) | 440.85M |
Key Highlights
- 1Net sales increased by 13% to $31.1 billion for the quarter.
- 2Comparable sales grew by a strong 10%, indicating healthy underlying business performance.
- 3Net income attributable to Costco rose 17% to $640 million, with diluted EPS at $1.45.
- 4Membership fee revenue saw a 10% increase, driven by member sign-ups and recent fee adjustments.
- 5SG&A expenses as a percentage of net sales decreased by 34 basis points, demonstrating operating leverage.
- 6The company declared a quarterly cash dividend of $0.50 per share, up from $0.45 in the prior year.
- 7Costco repurchased $119 million of its common stock during the quarter.