- Category: Grocers
- Last Updated on Wednesday, 03 September 2014 09:50
Costco started paying dividends in 2004 and since then, for seven consecutive years annual dividends have gone up. For the most recent quarter (3q2014) quarterly dividend is 35.5 cents a share (+14.5%) up from 31.0 cents 2q2014, same as 1q2013, 4q2013, 3q2013 after being stuck at 27.5c the previous two quarters (2013 q1/q2). 9m2013 dividend (excl special) up 79% to 86.0c; 12 wks ended Feb 13, 2013 included a special dividend of $7.00 + $0.275 ($0.24 -> $7.275). 18% of Costco's annual revenue comes during the months of November and December. May 29, 2014 : 655 locations, 3Q14 6 new stores vs 5 last year: US +2 Japan -1 Korea +1 Australia +1 Spain +1 ; 2q14 3 new stores vs 10 last year ; 1Q14 10 new stores vs 4 last year: US +10, Canada +2, Australia +2. FY2013 +26 stores (1H 14). 80% of the company's 39.8m/72.5m members (November 2013) are in the US and Canada. For Fiscal 2013 Costco shares up +16% same as S&P 500. 2q2014 members 39.8-> 40.3m. e-commerce = 2.5% of total sales. 2Q14 effective tax rate 35.0% (vs 34.6% 1q14, 25.1% 2q13). total square footage 92.654 million (+4% in fiscal 2013; 26 new stores). 2H2014: Costco sets up shop in Seville, Spain.
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Fast Facts : 1) Costco ranks #4 among US optical shops in terms of sales. 2) 1995 was the year Costco launched the Kirkland private label. 3) Average store size is 143 thousand square feet (4Q2011). The largest store is located in Oregon. 4) Daily transactions number over 2 million. 5) Costco's jewelry segment sells over 80,000 carats of diamonds each year. 6) In 2012 average Costco warehouse had sales of $154 million (+7%). 6) Comparable sales at stores open more than a year +10% 7) Costco sold $9.0 billion worth of gas in 2011 up 40% from 2010 8) 15% of all merchandise is sold under the Kirkland Signature banner. 9) exec members account for 1/3 of members but 2/3 sales
2q2014 (February 16th) - traffic up +4.25% but average transaction value down -1% (impacted by the price of gas which was down -10% for the month of February). For the quarter; sales growth strongest in softlines (mid to high single digits), weakest in electronics (negative mid single digits). Locations: opened 3 / closed 1 (Mexico). Locations up by 16 for the half (3 in the quarter in Illinois, Texas, Canada). FX rate impacted results: -7% decline in Canadian dollar, -15% Japanese yen. 11 more locations slated to open by fiscal year end (August 2014): US +6, Australia +1, Canada +1, Spain +1, Japan +1, Korea +1. gross margin 10.53 -> 10.59%: gas deflation really affected margins (core merchandise +1bp but would've been -1bp without the deflation), food and sundries gross margin up +5 to 20 basis points; hardlines and fresh foods down -30 to -50bp. Effective tax rate at 35.0% (vs 25.1% last year, 34.6% previous quarter). LIFO charge $5 million charge vs $9m credit last year ($14m swing in the negative). Comparable sales weak internationally: 4% US / 0% abroad / 3% total (same for 24 wks); excluding gas deflation and foreign exchange effects: 5% US / 7% abroad / 5% total (same for 24 wks).
1q2014 Update (December 11th) - gross margin at 10.81% up from 10.68% last year. Margins up for core merchandise (+12 basis points or +3 excl gas), ancillary business +5 (+2 excl gas): total +13 bp or +2 excl gas. Costco added on average 27,000 new executive members per week - total for the quarter +330,000 -> 13.9 million exec members represent 35% of member base but 67% of sales. Total household members now 39.8 million (+0.8m); including spouses 72.5m (+1.3m). Goldstar members 29.6m (0.7m), Primary business 6.7m (+0.1m), Add on 3.5m. Renewal rate: North America 90.2% (vs 90.0%), international 86.5% (vs 86.3% end of 2013). Effective tax rate at 34.6% vs 34.8% last year (1q2013). pretax income $646m (vs $659m). Online e-commerce now offered in four countries: USA, Canada, Mexico, UK. e-commerce sales +24% now accounts for 2.5% of total revenue. Same stores sales by region: USA 3%, international 1%, total 3%; excluding effect of weaker currencies and gas price deflation: USA 4%, international 6%, total 5%. 648 warehouses worldwide up from 612 last year. quarterly sales +5.5% to $24.468 billion, total revenue +5.4% to $25.017 billion.
4q2013 Financial Update: (full results released October 9th). On September 5th we were given a brief look at sales numbers. In contrast to the previous year 2013 spanned 52 weeks (-1) with the missing week accounted for in the final quarter (16 vs 17). Annual net sales up 6% to $102.9b with comparable sales up +6% for both USA and International. Excluding fx rates and gasoline prices, comparable sales again were up 6% on the year for both regions (USA, International). Quarterly net sales up just 1% to $31.8b (one week shorter). 4q comparable sales up 5% (US +5%, international +4%) or 5% when fx rates/gas prices are excluded (US +5%, international +7%). 5% is lower than the +7% recorded in the quarter just prior. fx rates had a negative impact on results abroad. September was a weak month for sales - overall comps up 3% but avg transaction value down -1.3% (without fx rates (-1.5%) and gas prices (-1%) avg transaction value +1.2%. 26 net new locations opened during the fiscal year (608 -> 634) resulting in square footage going up by 4%.
Company plans to open 36 new stores next fiscal year (2014) - 18 in US / 18 international including the first 2 in Spain. In fiscal 2013 26 new stores were opened - US 12, Japan 5, Canada 3, UK 3, Korea 1, Mexico 1, Taiwan 1.
October 9, 2013 - though results were generally positive, higher than anticipated costs and lower gas prices resulted in quarterly earnings falling short of analysts' estimates for the first time in two years (latest data out of Wal-mart and Macy's also disappoint). Quarterly earnings up 1.3% to $617m (eps $1.40 +1c) buyed investor sentiment.. shares of Costco ended up +2.1% on the day. Total revenue totaled $32.5b (+0.8%) alright but still ~0.6% lower than avg estimates. General administrative expenses grew faster than anticipated up +1.8% versus 0.5% estimate.. to $3.098b. quarterly - the foreign currencies where Costco operates weakened versus the USD resulting in earnings when converted to dollars being lower by about $10m pretax (-1.5c/share). December's $3.5b debt offering & $7 per share special dividend contributed to interest expense incr by $13m pretax (2c/share). Avg transaction value flat but frequency +4.5%. comp sales increases in the single digits for most US states - strongest in Texas, Midwest, Southeast. Overall, Canada and Mexico had strongest same-store sales increase. standouts - food and sundries up mid single digits -> Deli, wine and spirits, beer, frozen foods and candy. Office, health beauty were strong, electronic sales were weak. Soft lines low double digits with standouts being apparel, housewares and small electronics. Fresh food sales in the mid single digits (September sales $9.9b +6%). 4Q new member signups +9% despite one less week.
3q2013 Financials Update: Earnings +18.9% -> $459m ($0.89/$0.88 a share). comparable sales (like for like) +5% (6% US, 4% international) / +6% for the 36 week period (6% US, 6% international). Excluding effects of fx and gas prices total like for like sales in the quarter +7% total / 7% US, 7% international. Earnings for the 36 wk period were buoyed by a $62 million tax benefit in 2q (in connection to a December dividend). For the 9-month period : Net Income +29.3% to $1,422m (per share $3.27 <- $2.53). Sales +8.5% to $71,099m, fees +13.7% to $1,570m. negatives: average transactions were flat in the quarter, but shopping frequency increased +5.5% vs +4.5% in ytd. comparable sales increases strongest in Canada, Mexico. Texas and Southeast showed highest comparable sales increases with all US states in the mid to high single digits. standouts : food - deli, beer and wine, candy. hard-lines - consumer electronics, hardware, lawn and garden. soft-lines - up +10%; Small electrics, housewares, jewelry, and apparel were standouts were great but media was not. fresh foods - high single digits with deli and produce performing better than other areas. Fees : fee increases in US and Canada of $5 and $10 helped overall fee income increase by 8% - January 2013 first time fee increase was part of renewals. New memberships +19% yoy resulting from strong Japan signups in March. Members : Gold star 28.2m, Primary Business 6.6m, Addons 3.5m, total 38.3m households or 69.9m including spouses. Executive members contribute two thirds of sales: 13.3m up 250,000 in 12 wks. % of members who are executive up 1%. Renewal rates : US/Canada : Business 93.9% (same), Gold star 88.9% (up), total 88.9% (up). International : 86.5% -> 86.4% drop is due to region being home to more newer stores. Gross margin 10.55% -> 10.67% helped by ancillary business (+6) and lifo (+6), hit by core merchandising (-6 bp).
3q great but not amazing - growth in operating expenses 8.4% to $70,570m tied the 8.5% growth in net sales. Because fee revenue was up 13.7% or $189m it made operating income growth much better than it would've been. Long term debt up at $4.94b. Third quarter revenue missed analysts estimate by -$131m ($24.21b vs $24.08b) however investors were happy with company earnings which were 1c higher than consensus estimate. Between the day of the announcement (May 30) and June 3 the stock fell 5.3% from $115.77 to $109.63.
2q2013 Financials Update: Earnings +38.8% --> $547m ($1.24/$1.26 a share). comparable sales (like for like) +5% (5% US, 6% international) / +6% for the 24 week period (6% US, 7% international). Excluding effects of fx and gas prices, total like for like sales in the quarter +5% total / 5% US, 6% international. Earnings were boosted by a $62m tax benefit connected to the dividend paid last December to 401k investors. For the HLF: profit +34.9% to $963m. Sales +8.8% to $47.55b. There are now 622 total locations (Feb 17, 2013) vs 600 a year ago.
1q2013 Financials Update: Earnings +30% --> 95c/share (dil). comparable sales (like for like) +7% or +6% exlucing gas and fx. the increase in like for like sales is attributable to a 2.5% spending increase per transaction and 5.0% increase in visitor frequency. In Canadian dollars quarterly sales in Canada stood out with percentage growth in the low double digits. Sales growth was weakest in the NE USA due to hurricaine Sandy. Between 1q2012 and 1q2013 six news locations were opened in Asia: Japan 9-> 13, Taiwan 8-> 9, Korea 7-> 8. Sales in the Hardline category were strongest (led by electronics high teens, hardware mid teens) with Softlines also strong in the low double digits (small electronics, apparel). Like for like sales of fresh foods were in the high single digits. 14% increase in revenue from membership fees. Renewal rates at 89.7% in North America (led by Business at 93.8% up from 93.6%), 86.4% globally. Executive members account for 1/3 of members but 2/3 of sales. Overall, quarterly gross margins moved higher from 10.62% to 10.68%, but by category the performance was mixed; core merchandising margins -7bp but -1bp yoy (yoy change had been between -10bp and -16bp the previous four quarters). non core operations boosted margins by +14bp with a lot of that coming from higher margins in gasoline sales. Paid executive membership up to 12.9 million (+280th or 23th/wk). Q2Q change in Members: Goldstar +600th -> 27.3m, PB +100th -> 6.5m, addon -200th ->3.6m. Locations: 9 new locations opened putting the total at 618 (447 in the United States).
4q2012 Financials Update: Earnings +29% --> 139c/share. comparable sales (like for like using 17 weeks for both years) +5% or +6% excluding gas and fx. US and Canada fee increase added $26m pretax in the 4th quarter (4c a share). Gross margin now @10.51% (lower by 3bp). US dollar affected by foreign exchange rates, impacted after-tax income by -$20 million in 4Q (relative to 4q2011, if fx rate was the same as last year, income would've been higher by that amount). In March 2012 $900m was paid on the debt and that impacted interest expense yoy by ~$15.0 million pretax (2c/share). On July 9, 2012 Costco acquired the other 50% interest in Costco Mexico it didn't already own giving Costco 2c/share more in 4q earnings, it also cost Costco $8m in extra dividends (affected company's income tax line) altogether meaning no net earnings were realized. Fiscal year earnings up +18% in dollars, +16% in eps basis. For September 2012: frequency/traffic increased +4%, avg spending up +2%. Costco will open 14 new locations in just the first quarter of 2013 which is 3.5X the rate seen in 2012 (16 opened over the entire year). In 2012 the average warehouse reported sales of $154 million (vs $146m in 2011). E-commerce sales +14% in 4q and +90% for the year. 6 new store openings in the 4Q incl 2 in Asia (vs 12 in 4q2011 / 4 Asia, 2 Australia). Fee increase in Canada has no effect on renewal rates.
2011 Fiscal Year - Costco sales up +14% to $87 billion. Dividends paid : $389 million. Share repurchases cost the company $624 million. EPS share : +13% to $3.30. SG&A expenses at a low of 9.5% of sales. Avg warehouse sold $146 million worth of merchandise. Warehouses with sales over $200 million : 2011: 93 2010: 56. Executive members = 34% of total members but 66% of total sales. Gasoline sales +40% to $9.0 billion. Ancillary businesses reported sales growth of 24% in 2011. Kirkland Signature represents 15% of all items but 20% of total sales. 20 new stores opened during fiscal 2011 vs 14 in 2010.
2014 - Company plans to open 36 new stores next fiscal year (2014) - 18 in US / 18 international including the first two in Spain.
End of 3Q2014 / May 2, 2014: 6 net new warehouses opened during the quarter (vs 5 last year). 655 total locations : US 464 (+2), Canada 87, Mexico 33, UK 25, Japan 19 (+1), Taiwan 10, Korea 10 (+1), Australia 6 (+1), Spain 1 (+1). sidenote - By the end of May Costco opened new stores in Japan (+1 to 20) and Taiwan (+1 to 11).
End of 2Q2014 / March 2, 2014: During the quarter 3 new warehouses opened (Texas, Illinois, Ontario-Canada) and one closed (Mexico). 11 more expected to open in the next 5 months (6 in US, 1 each in Australia, Canada, Spain, Japan, Korea).
End of 1Q2014 / December 1, 2013: 14 net new warehouses opened during the quarter (vs 4 in 1q2013). 648 stores total : US 461 (+10), Canada 87 (+2), Mexico 33, UK 25, Japan 18, Taiwan 10, Korea 9, Australia 5 (+2). Mexico +1 but closed another -1.
End of 4Q2013 / September 1, 2013: 7 net new warehouses opened during the quarter (vs 6 in 4q2013). 634 stores total : US 451 (+2), Canada 85, Mexico 33, UK 25 (+1), Japan 18 (+3), Taiwan 10 (+1), Korea 9, Australia 3. The company had planned on nine openings. For the year, 26 net additional stores 608->634: US +12, Canada +3, Mexico +1, UK +3, Japan +5, Taiwan +1, Korea +1, Australia +0.
End of 3Q2013 / May 12, 2013: 5 net new warehouses opened during the quarter (vs 2 in 3q2012). 627 stores total (brackets show quarterly change) : US 449 (+1), Canada 85, Mexico 33 (+1), UK 24 (+1), Japan 15 (+2), Taiwan 9, Korea 9, Australia 3. Openings planned for 4q2013 (16 wks ending Sept 1, 2013) - nine.
End of 2Q2013 / February 17, 2012: 10 new warehouses opened during the quarter (vs 4 in 2q2012). Company plans on opening another 14 by the end of the year (would bring fiscal year 2013 openings to 27). 622 stores (vs 600 a year ago). US 448 (+6), Canada 85 (+2), Mexico 32, UK 23 (+1), Japan 13, Taiwan 9, Korea 9 (+1), Australia 3.
End of 1Q2013 / November 2, 2012 : 4 new warehouses opened during the quarter (vs 4 in 1q2012). 612 stores vs 596 a year ago. US: 442 (+3), Canada: 83 (+1), Mexico: 32, UK: 22, Japan: 13, Taiwan: 9, Korea: 8, Australia 3. Newest Canadian locations are in Oshawa (Toronto) and Drummondville (Montreal).
End of 4Q2012 / September 2, 2012 : 16 new warehouses opened in fiscal 2012 (down from 20 in 2011 / 14 in 2010) 10 of which were in the US, 4 in Japan, 1 each in Korea and Taiwan. US: 439 Canada: 82 Mexico: 32 UK: 22 Japan: 13 Taiwan: 9 Korea: 8 Australia: 3 Total worldwide locations are now at 608 (up from 592 end of Q4 2011). End of 4Q2011 / August 28 , 2011 : US: 429 Canada: 82 Mexico: 32 UK: 22 Japan: 9 Taiwan: 8 Korea: 7 Australia: 3 Costco plans to open 14 new warehouses between Sept 2012 - December 2012 (not included in 2012 fiscal results). Costco plans to open 27-30 new warehouses next year (2013) half of which will be in the USA / 14 of those 30 locations will be opened in 1Q2013.
End of 3Q2012 / May 6, 2012 : US: 435 Canada: 82 Mexico: 32 UK: 22 Japan: 13 Taiwan: 8 Korea: 7 Australia: 3 Total worldwide locations are now at 602 (up from 600 end of Q2 2012). End of 3Q2011 / May 8, 2011 : US: 425 Canada: 80 Mexico: 32 UK: 22 Korea: 7 Taiwan: 6 Japan: 8 Australia: 1 Both of Australia's newest locations were opened in Q4 2011.
New locations: Japan: 2 new locations in Q2 2012 (Osaka) followed by a third one in the Q3 2012. By the end of fiscal 2012 Japan was home to a total of 4 new costco warehouses bringing the total locations there up to 14 (ranks 5th among all countries in terms of locations just behind England at 22). In Q1 2012 Japan opened 2 new locations, each near the major cities of Tokyo and Osaka. Costco is on track to open 16 new store worldwide in 2012 (10 / 6 abroad / US). The 16 is down from a prior estimate of 17 made in February 2012.
Canada: In 1Q2013 Canada will get 3 new Costco Warehouses. In 4Q2012 Canada, Mexico, Korea had the strongest sales numbers. In the 3Q2012 Costco relocated a unit in Ontario Canada (closed 1 and consequently opened another). Canada is home to 82 of Costco's 608 stores (that's 1/5th as many locations as are in the USA --> but Canada only has 1/9th the population). Between May 8, 2011 and August 28, 2012 only 2 new net locations were opened in Canada. As of May 2013 newest Canadian stores are in Oshawa and Drummondville.
United States: In 1Q2013 the USA will get 9 new Costco warehouses (1 other location in Maryland will be delayed due to construction). During 3Q 2012 Costco opened 2 new US stores, one in Texas and another in Huntington Beach, California. The last major US opening happened during 1Q 2012 when 4 new stores opened in Texas, Wisconsin, Pennsylvania and Georgia.
Australia: Adelaide is set to get a new Costco in early 2014. By the end of 2013 Melbourne will be home to two locations. Spain: first two stores set to open in the Spring and Summer of 2014.
End of Q3: 602 stores worldwide, 16 net new units in 2012 (10 so far end of Q3, 6 more by end of Q4). Of the 16 net new stores for 2012, 10 are in the US, 1 is in South Korea, 1 in the Republic of China, 4 in Japan.
3q2014: US/Canada : Business 90.6%, Gold star 89.7%, total 90.6%. International 87.3%.
2q2014: US/Canada : Business 90.3% (vs 90.1%), Gold star 89.6% (vs 89.3%), total 90.2% (vs 90.4%). International 86.8% (vs 86.5%).
1q2014: US/Canada : 90.2% (vs 90.0%). International 86.5% (vs 86.3% end of 2013)
4q2013: US/Canada : Business 94.0% (+0.1%), Gold star 89.1% (up), total 90.0% (up). International : 86.4% -> 86.3%, drop is due to more stores in some regions & startups in new markets (takes time to attract new customers).
3q2013: US/Canada : Business 93.9% (same), Gold star 88.9% (up), total 89.9% (up). International : 86.5% -> 86.4%, drop is due to region being home to more newer stores. 80% of members are based in US, Canada.
2q2013: US/Canada : Business 93.9% (up) Gold star 88.8% (up), total 89.8%% (up). International : 86.5%
1q2013: US/Canada : Business 93.8% (up from 93.7%) Gold star 88.7% (same), total 89.7% (up). Inter : 86.4%
1q2012: US/Canada -> 89.7%, Worldwide -> 86.4%. Business Class: 93.8%, Gold star 88.7%.
4q2011: Total renewal rates: US/Canada -> 89.7%, Worldwide -> 86.4% (up from 86.2% end of 3q2012).
Business Class: 93.7%, Goldstar: 88.7%, Total new membership signups +2.0% yoy. Memberships 36.9 million total housesholds --- Goldstar: 26.7m, PB: 6.4m, addon: 3.8m. Including spouse cards there are 67.4m members (up from 66.5m in 3q2012). 12.6 million executive members (+2% or 245,000 since 3q2012) with a reported growth of 14,000 new exec members per week ! Exec members represent 1/3rd of member base but 2/3rds of sales.
3q2012: Business Class: 93.6% (up from 93.5% 2q; 93.3% end of 2011). Goldstar: 88.6% (up from 88.4% and 88.1%). Total renewal rates: US and Canada : 89.6% (vs 89.4% 2q; 89.1% beginning of fiscal year. Worldwide: 86.2% vs 85.6% in 2q; 85.7% end of 2011. 2q2012: 89% in US/Canada, 86% abroad.
Revenue By Category Source and Type
Period ending September 2, 2012 (17 and 53 weeks)
Compar Sales by Region: 17 weeks: +6% in US, +2% international, +5% overall. 53 weeks: +7% in US, +6% international, +7% overall
LIFO charge: $11.5 million (2c/share) of the $20.5 million (3c/share) pretax lifo charge, was incurred in the last quarter. Down from $32 million (4c/share) and $87 million (12c/share) in 4Q2011 / FY2011. In FY2010 there was no LIFO charge. International sales would've been up +7% if currencies did not weaken vs last year.
Reasons for the change in sales/revenue: Effects of currency rate changes (fx rates) --> Strength in the Canadian and US dollars; Weakness in the Yen ¥ / Won ₩. Also Gas price inflation impacted results. Excluding fx rates and gas price inflation, 4Q US sales were up +6% in 4Q, +6% in FY (up from +5% in 2011). Abroad: +2% (down from +10% in 4Q2011) +6% in FY (down from 10% in 2011). Overall: +5% / +7% (vs +7% / +6%). FX rates and gas inflation has a positive impact on revenue during the month of September.
Key Notes: 4Q: Softlines sales growth was in the single digits. Hardlines sales growth also in the single digits led by hardware/lawn-garden (high single digits). Consumer electronics comparable sales growth in the mid single digits. Sales of fresh foods were led by deli/produce --> up in the mid to high single digits range. Sundries/fresh foods experienced inflation in the low single digits. Membership fees +$104 million over the 4q2011 ($26m caused by higher rates in US/Canada). Renewal rates : US/Canada -> 90.0%, Worldwide -> 86.0%.
Period ending May 6, 2012 (12 and 36 weeks)
Sales Growth By Region: 12 weeks: +5% in US, +5% international, +5% overall 36 weeks: +7% in US, +8% international, +8% overall
UK: Executive member program launched in the United Kingdom during Q4 2009. Benefits of that program include getting reimbursed a percentage of what the member spent during the year (typically ~2%).
Key Notes: Gross Margins overall : 10.50% --> 10.55% ; in 3Q, core merchandise margins fell by -21 basis points (-16 bp excl gas price inflation). In the prior quarter (2q2012) core merchandise margin was down 25 bp (-0.25% or -0.16% excl gas price inflation).
Reasons for the change in sales/revenue: Effects of currency rate changes (fx rates) --> Strength in the Canadian and US dollars; Weakness in the Yen ¥ / Won ₩. Also Gas price inflation impacted results. Excluding fx rates and gas price inflation, sales were up +4% (down from 6% last year) in the US, +8% abroad (down from 11%), +5% overall (down from 7%). 36 weeks (1q/2q/3q combined): +6% US (up from 4% same period last year), +9% abroad (down from 10%), +7% overall (up from 6%). Same store sales growth weakest in Japan due to new stores taking some business from others. 2Q2012 : FX Rates cost the company $5.0m pretax (similar to cost in 1Q2011); Gross margins were lower that quarter.
Non-Food -> Positives: Hardware, Automotive, Appliances, Apparel (though growth was less than in previous quarters). -> Negatives: Electronics (slightly) Food: All categories were up by single to mid digit range including the category overall. Fresh food inflation around 2-3% but inflation slowed toward end of the 3Q mostly from beef.
Members / New Membership Fees
2q2014: Memberships -- 40.3m total households --- Goldstar 30.1m (+0.5m), Primary Business 6.7m (same), add on 3.5m (same). 73.4m (+0.8m) including spouses.
1q2014: Memberships -- 39.8m total households --- Goldstar 29.6m (+0.7m), Primary Business 6.7m (+0.1m), Add on 3.5m.
4q2013: Memberships -- 39.0m total households --- Gold star 28.9m, Primary Business 6.6m (no change), addon 3.5m, total 71.2m including spouses. Executive members 13.5m up 250,000 in 16 wks or 15,000 added per week during the quarter. Exec members account for 1/3 of total members but 2/3 of company sales.
3q2013: Memberships -- 38.3m total households --- Gold star 28.2m, Primary Business 6.6m, addon 3.5m, total 69.9m including spouses. Executive members contribute two thirds of sales: 13.3m up 250,000 in 12 wks (versus 181,000 previous 12 weeks). % of members who are executive up 1%.
2q2013: Memberships -- 37.9m total households --- Gold star 27.8m, PB 6.5m, addon 3.5m, total including spouses 69.1m. Executive members 13.05m +181,000.
1q2013: Memberships -- 37.4m total households --- Gold star 27.3m, PB 6.5m, addon 3.6m, total including spouses 68.2m. Executive members 12.869m. All up except for business addon 3.8m -> 3.6m
4q2012: Total revenue from membership fees was up +17.6% or +$104 million to $694 million ($26m of $104m increase caused by higher rates in US/Canada). When comparing renewal rates in Canada/US to the period when the fee increase first came into effect (November) there seems to be no effect on renewal rates. Fees increased by $208 million on the year or +11.1%. In the 4q executive membership increased by 14,000 per week. Memberships -- 36.9 million total housesholds --- Goldstar: 26.7m, PB: 6.4m, addon: 3.8m. Including spouse cards there are 67.4m members (up from 66.5m in 3q2012). 12.6 million executive members (+2% or 245,000 since 3q2012) with a reported growth of 14,000 new exec members per week ! Exec members represent 1/3rd of member base but 2/3rds of sales.
3q2012: Total revenue from membership fees was up +9.2% --> $475 (from $435). $8.0 million of that increase came from higher membership fees in the United States and Canada (contributed $8m of the $40m increase; higher fees took effect November 2011). There was also a negative impact of $3.0 million stemming from fluctuations in foreign exchange rates.
Changes in membership fees were passed on to customers only in the US/Canada region. Changes were as follows: Goldstar: $50 --> $55.0; Executive Member: $100 --> $110 Effective Jan 1, 2012 for renewers, November 2011 for new members. The fee increase raised revenue by +1m in Q1; +8m in Q3 and will have an increasingly greater effect in the coming quarters (will have a positive effect on results over the next 23 months). 22 million members impacted by fee increases 11 million of which are executive members (who are now paying $110 a year for their membership).
New Membership Signups : +9% (mostly from Asia, Australia). Goldstar 26.4 million members (up from 25.9m Feb 2012), Business Primary 6.4m (no change), Business Addon: 3.6m (down from 3.7m). Paying executive members: 12.3m up from 12.1m quarter to quarter
Total member households : 3Q2012 is 36.4m (up from 36.0m end of 2Q2012). including spouses: 66.5m (vs 65.7m)
Financials 2012 Fiscal / 4Q Period Ending September 2, 2012
Total 4Q sales up +14.13% --> $31.5b (vs $27.6b). In the quarter traffic increased 4.5% though average transaction was flat yoy (impacted by weak foreign currencies / w/o that, avg transaction would've been up +1.5%). E-commerce sales from costco.com costco.ca +14% in 4q and +90% for the year. In the 4Q Costco launched smartphone apps for Apple and Android users. E-commerce site for UK users will open on October 15. For the year average warehouse sold $154m worth of product (+7%). Strongest sales figures came from Canada, Mexico, Korea. For the fiscal year sales up 11.50% or +$10.014 billion (in 2011 sales were up +14%).
Financials 2q 2012: Period Ending February 12, 2012
Sales up +10% (8-9% when gas/fx effects excluded). In February 2012 average transactions were worth +2.2% more / avg frequency of visits per member up +5% (over 2 million transactions processed daily). US: Midwest / Southwest / Southeast regions reported the strongest sales increase (especially midwest Texas). International sales were up between +8% and +11% in the last 3 quarters (4q2011 1q2012 2q2012). Non-food categories: Strongest results were seen in hardware and automotive. New member signups up +11% year over year.
Financials 4q 2011: Period Ending November 20, 2011
Sales up +12% (7% when gas/fx effects excluded). Candy and Deli items showed the strongest results within the food and sundries category. Hardline sales were strongest in tires and sporting goods (low to high teen digit increases). Electronics contributed 1/3 of total hardline sales. For the quarter, Inflation pushed fresh foods / sundries prices up (inflation was in the low to mid single digits). For the month of September 2011 hardlines (hardware, sporting goods, tires) showed some of the strongest results in a while. Sofware / media sales were relatively soft. Membership fees up +11% --> $590m (vs 533m) however as a percentage of sales that's down 12 bp (-6 bp if you ignore gas price inflation effect on total revenue). Renewal rates: 89.7% in US/Canada, 86.4% abroad. 2 new locations opened in Australia bringing the total units there up to --> 3. Full repored on 2011 statistics can be found here
Costco does issue detailed annual reports which show everything in pdf format however the detailed quarterly results are found in the company's conference calls.