Costco Wholesale Corp. Files 10-Q for Period Ending February 18, 2024

TL;DR

<b>Costco Wholesale Corp. filed its 10-Q report for the second quarter of fiscal year 2024, ending February 18, 2024.</b>

AI Summary

COSTCO WHOLESALE CORP /NEW (COST) filed a Quarterly Report (10-Q) with the SEC on March 13, 2024. Costco Wholesale Corp. filed its 10-Q report for the period ending February 18, 2024. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on September 1st. Costco Wholesale Corp. is incorporated in Washington state. The company's IRS number is 911223280.

Why It Matters

For investors and stakeholders tracking COSTCO WHOLESALE CORP /NEW, this filing contains several important signals. This filing provides investors with the latest financial performance and operational details for Costco Wholesale Corp. Understanding the 10-Q is crucial for assessing the company's financial health, profitability, and strategic direction in the current retail landscape.

Risk Assessment

Risk Level: low — COSTCO WHOLESALE CORP /NEW shows low risk based on this filing. The filing is a standard 10-Q, indicating routine financial reporting with no immediate red flags.

Analyst Insight

Monitor future 10-Q filings for trends in revenue, net income, and debt levels to inform investment decisions.

Key Numbers

• 2024-02-18 — Period End Date (Conformed Period of Report)
• 2024-03-13 — Filing Date (Filed as of Date)
• 0901 — Fiscal Year End (Fiscal Year End)
• 5331 — Standard Industrial Classification (SIC Code for Retail-Variety Stores)

Key Players & Entities

• COSTCO WHOLESALE CORP /NEW (company) — Filer
• 0000909832 (company) — Central Index Key
• WA (location) — State of Incorporation
• 911223280 (company) — IRS Number
• 20240218 (date) — Conformed Period of Report
• 20240313 (date) — Filed as of Date

FAQ

Industry Context

Costco operates as a membership warehouse club, offering a limited selection of branded and private-label products across various categories.

Regulatory Implications

The filing is a 10-Q, a quarterly report required by the SEC for publicly traded companies to provide updates on their financial condition.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Compare key financial metrics from this filing to previous periods to identify performance trends.
3. Analyze any disclosed risk factors or legal proceedings that may impact the company's future operations.

Key Dates

• 2024-02-18: Period End Date — End of the reporting period for the 10-Q filing.
• 2024-03-13: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial analysis of the 10-Q filing for the period ending February 18, 2024. No prior filing data is available for comparison within this output.

Filing Documents

• cost-20240218.htm (10-Q) — 874KB
• costex31110q21824.htm (EX-31.1) — 19KB
• costex32110q21824.htm (EX-32.1) — 11KB
• 0000909832-24-000017.txt (&nbsp;) — 4374KB
• cost-20240218.xsd (EX-101.SCH) — 27KB
• cost-20240218_cal.xml (EX-101.CAL) — 50KB
• cost-20240218_def.xml (EX-101.DEF) — 120KB
• cost-20240218_lab.xml (EX-101.LAB) — 375KB
• cost-20240218_pre.xml (EX-101.PRE) — 257KB
• cost-20240218_htm.xml (XML) — 533KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Condensed Consolidated Statements of Income 3 Condensed Consolidated Statements of Comprehensive Income 4 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Equity 6 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 27

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 27

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28

Other Information

Item 5. Other Information 28

Exhibits

Item 6. Exhibits 28

Signatures

Signatures 29 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

—Financial Statements

Item 1—Financial Statements COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) (unaudited) 12 Weeks Ended 24 Weeks Ended February 18, 2024 February 12, 2023 February 18, 2024 February 12, 2023 REVENUE Net sales $ 57,331 $ 54,239 $ 114,048 $ 107,676 Membership fees 1,111 1,027 2,193 2,027 Total revenue 58,442 55,266 116,241 109,703 OPERATING EXPENSES Merchandise costs 51,140 48,423 101,597 96,192 Selling, general and administrative 5,240 4,940 10,598 9,857 Operating income 2,062 1,903 4,046 3,654 OTHER INCOME (EXPENSE) Interest expense ( 41 ) ( 34 ) ( 79 ) ( 68 ) Interest income and other, net 216 114 376 167 INCOME BEFORE INCOME TAXES 2,237 1,983 4,343 3,753 Provision for income taxes 494 517 1,011 923 NET INCOME $ 1,743 $ 1,466 $ 3,332 $ 2,830 NET INCOME PER COMMON SHARE: Basic $ 3.93 $ 3.30 $ 7.51 $ 6.37 Diluted $ 3.92 $ 3.30 $ 7.49 $ 6.37 Shares used in calculation (000s): Basic 443,892 443,877 443,859 443,857 Diluted 444,754 444,475 444,579 444,503 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (amounts in millions) (unaudited) 12 Weeks Ended 24 Weeks Ended February 18, 2024 February 12, 2023 February 18, 2024 February 12, 2023 NET INCOME $ 1,743 $ 1,466 $ 3,332 $ 2,830 Foreign-currency translation adjustment and other, net 1 253 ( 37 ) 157 COMPREHENSIVE INCOME $ 1,744 $ 1,719 $ 3,295 $ 2,987 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) (unaudited) February 18, 2024 September 3, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,095 $ 13,700 Short-term investments 1,226 1,534 Rec

Legal Proceedings

Legal Proceedings The Company is involved in many claims, proceedings and litigations arising from its business and property ownership. In accordance with applicable accounting guidance, the Company establishes an accrual for legal proceedings if and when those matters present loss contingencies that are both probable and reasonably estimable. There may be losses in excess of amounts accrued. The Company monitors those matters for developments that would affect the likelihood of a loss (taking into account where applicable indemnification arrangements concerning suppliers and insurers) and the accrued amount, if any, thereof, and adjusts the amount as appropriate. The Company has recorded immaterial accruals with respect to certain matters described below, in addition to other immaterial accruals for matters not described below. If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual, but monitors for developments that make the contingency both probable and reasonably estimable. In each case, there is a reasonable possibility that a loss may be incurred, including a loss in excess of the applicable accrual. For matters where no accrual has been recorded, the possible loss or range of loss (including any loss in excess of the accrual) cannot, in the Company's view, be reasonably estimated because, among other things: the remedies or penalties sought are indeterminate or unspecified; the legal and/or factual theories are not well developed; and/or the matters involve complex or novel legal theories or a large number of parties. In November 2023, a former employee filed a class action against the Company alleging claims under California law for failure to pay minimum wage, failure to pay overtime, failure to provide meal and rest breaks, failure to provide accurate wage statements, failure to rei

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