Costco Boosts Earnings In Fiscal Year

For fiscal 2015, Costco Wholesale Corp. posted earnings of $2.38 billion, or $5.37 per diluted share, versus $2.06 billion, or $4.65 per diluted share, in the last fiscal year.

Net income for fiscal 2015 got a $57 million, or 13 cents per diluted share, lift from a tax benefit in connection with a second quarter special cash dividend received by company 401(k) plan participants.

Net sales gain for the fiscal year 2015 ended August 30 was 3% to $113.7 billion, with comps, excluding the effects of gasoline and currency value fluctuations, advancing 6% in the United States, 8% in Canada, 6% in other international markets and 7% for the company in total. Including fuel and currency effects, comps were up 3% in the U.S. and down 5% in Canada, down 3% in other international markets for a company total of up 1%.

Net income for the fourth quarter was $767 million, or $1.73 per diluted share, versus $697 million, or $1.58 per diluted share, in the fiscal 2014 period. 

Fourth quarter earnings beat a Zacks Investment Research analyst average estimate of $1.66.

In the fourth quarter, net sales gained 1% to $35 billion, while comps, without fuel and foreign currency impacts, increased 6% in the U.S., 7% in Canada and 6% in other international markets, for a company-wide 6% advance. With gas and currency fluctuations included, U.S. comps were up 2%, Canada comps were down 10%, other international comps were down 7% and company comps were down 1%.

Costco operates 686 warehouse clubs, including 480 in the U.S. and Puerto Rico, 89 in Canada, 36 in Mexico, 27 in the United Kingdom, 23 in Japan, 12 in Korea, 11 in Taiwan, seven in Australia and one in Spain. The retailer stated that it plans to open up to an additional 12 new warehouses, including one relocation, before the end of calendar year 2015. In addition, Costco operates e-commerce web sites in the U.S., Canada, the U.K. and Mexico.