Summary
Costco Wholesale Corporation reported strong financial results for the second quarter and first half of fiscal year 2022, ending February 13, 2022. Net sales saw a significant increase of 16% year-over-year for both periods, driven by robust comparable sales growth of 14% and 15%, respectively, and contributions from newly opened warehouses. Membership fee revenue also grew by 10%, indicating strong member loyalty and an expanding customer base. Despite a slight decrease in gross margin percentage due to merchandise costs and LIFO charges, the company effectively managed its operating expenses, with SG&A as a percentage of net sales decreasing significantly. Net income and diluted earnings per share showed substantial year-over-year improvement, reflecting improved operational efficiency and sales growth. The company also continued its commitment to shareholder returns through a consistent quarterly dividend and active share repurchase program.
Financial Highlights
50 data points| Revenue | $51.90B |
| Cost of Revenue | $45.52B |
| Gross Profit | $6.39B |
| SG&A Expenses | $4.58B |
| Operating Income | $1.81B |
| Interest Expense | $36.00M |
| Net Income | $1.30B |
| EPS (Basic) | $2.93 |
| EPS (Diluted) | $2.92 |
| Shares Outstanding (Basic) | 443.62M |
| Shares Outstanding (Diluted) | 444.92M |
Key Highlights
- 1Net sales increased by 16% to $50.9 billion for the 12-week period and $100.4 billion for the 24-week period, year-over-year.
- 2Comparable sales grew by 14% in the second quarter and 15% in the first half, demonstrating continued customer demand.
- 3Membership fee revenue rose by 10% to $967 million in the second quarter, reflecting strong member retention and acquisition.
- 4Net income attributable to Costco increased to $1.3 billion ($2.92 per diluted share) for the second quarter and $2.6 billion ($5.90 per diluted share) for the first half, marking significant year-over-year growth.
- 5Selling, General, and Administrative (SG&A) expenses as a percentage of net sales decreased by 94 basis points in the second quarter and 80 basis points in the first half, indicating improved operational leverage.
- 6The company declared a quarterly cash dividend of $0.79 per share, a 13% increase from the prior year's comparable quarter ($0.70).
- 7Capital expenditures for the first half of fiscal 2022 were $1.8 billion, with a full-year plan of approximately $4.0 billion, focused on new warehouse development.