Costco Wholesale Corp. (COST, Financial) filed Quarterly Report for the period ended 2012-05-06.
Costco Whole Cp has a market cap of $37.04 billion; its shares were traded at around $87.8 with a P/E ratio of 23.4 and P/S ratio of 0.4. The dividend yield of Costco Whole Cp stocks is 1.3%. Costco Whole Cp had an annual average earning growth of 9.3% over the past 10 years. GuruFocus rated Costco Whole Cp the business predictability rank of 5-star.
Gasoline price inflation positively impacted net sales by approximately $141 or 70 basis points, and $789, or 133 basis points during the third quarter and first thirty-six weeks of 2012, respectively, which resulted from a 6% and 13% increase in the average sales price per gallon during the third quarter and first thirty-six weeks of 2012, respectively. Changes in foreign currencies relative to the U.S. dollar negatively impacted net sales by approximately $151, or 75 basis points, and $192, or 32 basis points during the third quarter and first thirty-six weeks of 2012, respectively. The negative impact in the third quarter of 2012 was primarily due to negative impacts in the exchange rates of the Canadian dollar and the Mexican peso of approximately $86 and $48, respectively. The negative impact in the first thirty-six weeks of 2012 was primarily due to negative impacts of the Mexican peso and the Canadian dollar of approximately $150 and $103, respectively, partially offset by a positive impact of the Japanese yen of approximately $76.
Gross margin as a percent of net sales increased five basis points compared to the third quarter of 2011. Gross margin for core merchandise categories (food and sundries, hardlines, softlines, and fresh foods) decreased 21 basis points, primarily due to decreases in food and sundries and hardlines margins resulting from our investment in merchandise pricing. Excluding the effect of gasoline price inflation on net sales, gross margin for core merchandise categories decreased 14 basis points. Gross margins in our warehouse ancillary and other businesses increased seven basis points as a percent of total net sales, primarily due to higher gross margins in our gasoline business. The gross margin comparison was also positively impacted by 21 basis points due to a $6 LIFO inventory charge in the third quarter 2012 compared to a $49 LIFO charge in the third quarter of 2011. Increased penetration of the Executive Membership 2% reward program negatively impacted gross margin by two basis points due to increased spending by Executive Members. Changes in foreign currencies relative to the U.S. dollar negatively impacted gross margin by approximately $17 in the third quarter of 2012.
Gross margin as a percent of net sales for the first thirty-six weeks of 2012 decreased 20 basis points compared to the first thirty-six weeks of 2011. Gross margin for the core merchandise categories decreased 26 basis points, primarily due to decreases in food and sundries, hardlines, and softlines. Excluding the effect of gasoline price inflation, gross margin for core merchandise categories decreased 14 basis points due to our investment in merchandise pricing. The gross margin comparison was positively impacted by eight basis points due to a $9 LIFO inventory charge in the first thirty-six weeks of 2012 compared to a $55 LIFO charge in the first thirty-six weeks of 2011. Increased penetration of the Executive Membership 2% reward program negatively affected gross margin by two basis points due to increased spending by Executive Members. Changes in foreign currencies relative to the U.S. dollar negatively impacted gross margin by approximately $20 for the first thirty-six weeks of 2012, primarily due to negative impacts of the Mexican peso of approximately $17.
Net cash used in investing activities totaled $517 in the first thirty-six weeks of 2012 compared to $1,238 in the first thirty-six weeks of 2011, a decrease of $721. This decrease was primarily attributable to net cash provided by purchases, maturities and sales of investments of $393 in the first thirty-six weeks of 2012, compared to net cash used by these activities of $589 in the first thirty-six weeks of 2011, a difference of $982, which was in anticipation of the $900 repayment of long-term debt in the third quarter, described below. This was partially offset by an increase in cash in the first thirty-six weeks of 2011 of $165 resulting from the initial consolidation of Costco Mexico. Additionally, cash used for property and equipment additions increased $82 in the first thirty-six weeks of 2012 as compared to 2011.
Read the The complete Report
Costco Whole Cp has a market cap of $37.04 billion; its shares were traded at around $87.8 with a P/E ratio of 23.4 and P/S ratio of 0.4. The dividend yield of Costco Whole Cp stocks is 1.3%. Costco Whole Cp had an annual average earning growth of 9.3% over the past 10 years. GuruFocus rated Costco Whole Cp the business predictability rank of 5-star.
Highlight of Business Operations:
Net sales increased $1,661 or 8.2%, and $6,078 or 10.2% in the third quarter and first thirty-six weeks of 2012, respectively. These increases were attributable to an increase in comparable warehouse sales and sales at the 20 net new warehouses opened since the end of the third quarter of fiscal 2011.Gasoline price inflation positively impacted net sales by approximately $141 or 70 basis points, and $789, or 133 basis points during the third quarter and first thirty-six weeks of 2012, respectively, which resulted from a 6% and 13% increase in the average sales price per gallon during the third quarter and first thirty-six weeks of 2012, respectively. Changes in foreign currencies relative to the U.S. dollar negatively impacted net sales by approximately $151, or 75 basis points, and $192, or 32 basis points during the third quarter and first thirty-six weeks of 2012, respectively. The negative impact in the third quarter of 2012 was primarily due to negative impacts in the exchange rates of the Canadian dollar and the Mexican peso of approximately $86 and $48, respectively. The negative impact in the first thirty-six weeks of 2012 was primarily due to negative impacts of the Mexican peso and the Canadian dollar of approximately $150 and $103, respectively, partially offset by a positive impact of the Japanese yen of approximately $76.
Gross margin as a percent of net sales increased five basis points compared to the third quarter of 2011. Gross margin for core merchandise categories (food and sundries, hardlines, softlines, and fresh foods) decreased 21 basis points, primarily due to decreases in food and sundries and hardlines margins resulting from our investment in merchandise pricing. Excluding the effect of gasoline price inflation on net sales, gross margin for core merchandise categories decreased 14 basis points. Gross margins in our warehouse ancillary and other businesses increased seven basis points as a percent of total net sales, primarily due to higher gross margins in our gasoline business. The gross margin comparison was also positively impacted by 21 basis points due to a $6 LIFO inventory charge in the third quarter 2012 compared to a $49 LIFO charge in the third quarter of 2011. Increased penetration of the Executive Membership 2% reward program negatively impacted gross margin by two basis points due to increased spending by Executive Members. Changes in foreign currencies relative to the U.S. dollar negatively impacted gross margin by approximately $17 in the third quarter of 2012.
Gross margin as a percent of net sales for the first thirty-six weeks of 2012 decreased 20 basis points compared to the first thirty-six weeks of 2011. Gross margin for the core merchandise categories decreased 26 basis points, primarily due to decreases in food and sundries, hardlines, and softlines. Excluding the effect of gasoline price inflation, gross margin for core merchandise categories decreased 14 basis points due to our investment in merchandise pricing. The gross margin comparison was positively impacted by eight basis points due to a $9 LIFO inventory charge in the first thirty-six weeks of 2012 compared to a $55 LIFO charge in the first thirty-six weeks of 2011. Increased penetration of the Executive Membership 2% reward program negatively affected gross margin by two basis points due to increased spending by Executive Members. Changes in foreign currencies relative to the U.S. dollar negatively impacted gross margin by approximately $20 for the first thirty-six weeks of 2012, primarily due to negative impacts of the Mexican peso of approximately $17.
Net cash used in investing activities totaled $517 in the first thirty-six weeks of 2012 compared to $1,238 in the first thirty-six weeks of 2011, a decrease of $721. This decrease was primarily attributable to net cash provided by purchases, maturities and sales of investments of $393 in the first thirty-six weeks of 2012, compared to net cash used by these activities of $589 in the first thirty-six weeks of 2011, a difference of $982, which was in anticipation of the $900 repayment of long-term debt in the third quarter, described below. This was partially offset by an increase in cash in the first thirty-six weeks of 2011 of $165 resulting from the initial consolidation of Costco Mexico. Additionally, cash used for property and equipment additions increased $82 in the first thirty-six weeks of 2012 as compared to 2011.
Read the The complete Report
