NASDAQ$COST

Costco Wholesale Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Costco's operating results for the second quarter of fiscal year 2021 were reported.

Costco's second quarter net sales increased by 14.7% to $43.89 billion. Net income for the quarter was $951 million, or $2.14 per diluted share, including costs from COVID-19 premium wages.

  • Net sales for the quarter increased 14.7 percent to $43.89 billion.
  • Net income for the quarter was $951 million, or $2.14 per diluted share.
  • Comparable sales for the total company increased 13.0 percent.
  • E-commerce comparable sales increased 75.8 percent.

Headline financials

Total Revenue

$44.8B

Previous: $39.1B+14.6%
EPS (adj)

$2.14

Previous: $2.10+1.9%
US Comp Sales Ex-Gas/FX

12.6%

Previous: 8.1%+55.6%
Canada Comp Sales Ex-Gas/FX

10.6%

Previous: 6.8%+55.9%
Intl Comp Sales Ex-Gas/FX

17.7%

Previous: 7.1%+149.3%
Total Comp Sales Ex-Gas/FX

12.9%

Previous: 7.9%+63.3%
Adj Digital Comp Sales

74.8%

Previous: 28.0%+167.1%
Capital Expenditures

-$1.47B

Previous: -$1.26B-16.3%
Free Cash Flow

-$515M

Previous: -$329M-56.5%
Net Income

$951M

Previous: $931M+2.1%
Operating Income

$1.34B

Previous: $1.27B+5.8%
Gross Profit

$5.69B

Previous: $5.02B+13.5%
Cash & Equivalents

$8.64B

Previous: $7.79B+10.9%
Total Assets

$54.9B

Previous: $48.8B+12.6%
Stock-Based Comp

$122M

Previous: $118M+3.4%

Revenue & EPS history

Costco · Revenue · Quarterly

$44.8B

Q2 2021+14.6%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs), energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, COVID-19 related factors and challenges, including (among others) the duration of the pandemic, the unknown long-term economic impact, reduced shopping due to illness, travel restrictions or financial hardship, shifts in demand away from discretionary or higher-priced products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures due to reduced workforces or government mandates, or supply-chain disruptions, capacity constraints of third-party logistics suppliers, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission.

Tailwinds

  • The company currently operates 804 warehouses.
  • Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.
  • Net sales for the quarter increased 14.7 percent
  • Net income for the quarter was $951 million
  • Comparable sales for the total company increased 13.0 percent

Headwinds

  • Domestic and international economic conditions, including exchange rates
  • The effects of competition and regulation
  • Uncertainties in the financial markets
  • Rising costs associated with employees (generally including health-care costs), energy and certain commodities
  • COVID-19 related factors and challenges

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.1%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.2%

Avg return

30 days after

56%

40 / 72 earnings

Positive

+7.0%

Q3 2022

Best reaction

-9.1%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2027
Q2 2026+2.1%+1.0%+3.3%
Q1 2026-2.0%-2.5%+4.6%
Q4 2025-2.2%-2.8%-1.2%
Q3 2026+1.6%-2.8%-4.8%
Q3 2025+3.1%+4.3%-2.3%
Q2 2025-6.1%-9.7%-10.7%
Q1 2025-0.5%-1.3%-5.8%
Q4 2024-2.5%-3.4%-1.9%
Q3 2024+0.4%+2.6%+5.4%
Q2 2024-6.2%-4.7%-7.7%
Q1 2024+2.6%+5.6%+6.4%
Q4 2023+0.9%+1.1%-2.0%
Q3 2023+5.1%+5.2%+8.6%
Q2 2023-0.7%+1.4%+3.8%
Q1 2023+0.2%+1.3%+0.2%
Q4 2022-5.4%-3.0%-3.0%
Q3 2022+7.0%+5.9%+10.1%
Q2 2022-0.5%-0.9%+9.0%
Q1 2022+5.4%+2.9%+1.1%
Q4 2021+3.4%-1.1%+6.6%
Q3 2021-1.9%-1.9%+2.3%
Q2 2021-2.0%-1.6%+9.6%
Q1 2021+0.2%-0.6%-1.2%
Q4 2020-0.6%+2.2%+8.7%
Q3 2020+0.8%+0.4%-3.1%
Q2 2020-2.9%-3.5%-10.0%
Q1 2020-1.2%+0.1%+0.7%
Q4 2019+2.3%+2.4%+3.9%
Q3 2019-0.5%+2.0%+9.8%
Q2 2019+3.9%+6.3%+12.2%
Q1 2019-9.1%-10.9%-7.6%
Q4 2018-6.2%-3.9%-1.3%
Q3 2018-1.3%-0.9%+4.7%
Q2 2018-3.0%-1.1%-3.9%
Q1 2018+2.4%+0.0%+1.9%
Q4 2017-4.9%-5.0%+0.7%
Q3 2017+2.8%+3.4%-9.2%
Q2 2017-4.3%-6.1%-5.7%
Q1 2017+4.4%+6.2%+7.8%
Q4 2016+2.1%+0.7%+0.2%
Q3 2016+5.0%+4.6%+9.1%
Q2 2016+0.7%
Q1 2016-4.4%
Q4 2015+0.7%
Q3 2015+0.7%
Q2 2015+1.6%
Q1 2015-1.1%
Q4 2014+2.5%
Q3 2014+1.6%
Q2 2014-2.6%
Q1 2014-1.5%
Q4 2013+3.1%
Q3 2013-2.9%
Q2 2013+1.0%
Q1 2013-0.5%
Q4 2012-1.3%
Q3 2012+1.4%
Q2 2012+1.0%
Q1 2012-3.5%
Q4 2011+0.8%
Q3 2011-0.8%
Q2 2011+1.3%
Q1 2011+1.1%
Q4 2008-2.3%
Q4 2010-2.3%
Q3 2010+0.2%
Q3 2009+0.2%
Q2 2009+0.6%
Q2 2010+0.6%
Q4 2009+2.5%
Q1 2010+2.5%
Q1 2009+2.5%

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