Costco 2nd Quarter Results

Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2009, and February Sales Results

ISSAQUAH, WA, Mar 04, 2009 (MARKET WIRE via COMTEX) -- Costco Wholesale Corporation (NASDAQ: COST) announced today its operating results for the second quarter (12 weeks) and first half (24 weeks) of fiscal 2009, both ended February 15, 2009, and its February sales results for the four weeks ended March 1, 2009.
Net sales for the second quarter of fiscal 2009 declined one percent, to $16.49 billion, from $16.62 billion during the second quarter of fiscal 2008. Net sales for the first half of fiscal 2009 increased one percent, to $32.52 billion, from $32.09 billion during the first half of fiscal 2008.

Net income for the second quarter of fiscal 2009 was $239.7 million, or $.55 per diluted share, compared to $327.9 million, or $.74 per diluted share, during the second quarter of fiscal 2008. Net income for the first half of fiscal 2009 was $502.2 million, or $1.14 per diluted share, compared to net income for the first half of fiscal 2008 of $589.8 million, or $1.33 per diluted share.
According to Richard Galanti, Chief Financial Officer of Costco, "Second quarter 2009 earnings results were negatively impacted by a variety of factors, primarily centered around overall weak economic conditions. In particular, our quarterly results were hurt by the continued weakness in non-foods sales and related margins. Margins in foods and non-foods were also negatively affected by increased pre-holiday seasonal markdowns and other selective price reductions to drive sales and increase market share. In addition, results were hurt by lower year-over-year gasoline profits and lower reported international profits, the latter a result of the significant strengthening of the U.S. dollar when compared to the currencies of Canada, the United Kingdom, Korea and Mexico."
The Company today also reported net sales of $5.06 billion for the four weeks ended March 1, 2009, a decrease of one percent from $5.13 billion in the same four-week period of the prior fiscal year. For the six-month retail reporting period of September through February, the twenty-six weeks ended March 1, 2009, which includes the first two weeks of the Company's fiscal third quarter, the Company reported net sales of $35.08 billion, an increase of one percent from $34.77 billion during the comparable period of the prior fiscal year.