Costco(US:COST)2023-10-10 23:13Membership and Membership Fees - Total paid memberships reached 71 million in 2023, up from 65.8 million in 2022, representing an increase of 1.2 million Gold Star members and 400,000 Business members[22]. - Membership renewal rates were 92.7% in the U.S. and Canada, and 90.4% worldwide at the end of 2023[22]. - Executive members, who earn a 2% reward on qualified purchases, totaled 32.3 million and represented 45.4% of paid members, contributing approximately 72.8% of worldwide net sales in 2023[23]. - Membership fees increased to $4,580 million for the 53 weeks ended September 3, 2023, compared to $4,224 million in the prior year, reflecting a growth of 8.4%[178]. Financial Performance - Total revenue for the 53 weeks ended September 3, 2023, was $242,290 million, an increase of 6.0% from $226,954 million for the 52 weeks ended August 28, 2022[178]. - Net income attributable to Costco for the 53 weeks ended September 3, 2023, was $6,292 million, up 7.7% from $5,844 million for the previous year[178]. - Operating income rose to $8,114 million, a 4.1% increase from $7,793 million in the previous year[178]. - Basic net income per common share attributable to Costco was $14.18 for the 53 weeks ended September 3, 2023, compared to $13.17 for the previous year, representing an increase of 7.6%[178]. - The company reported comprehensive income of $6,316 million for the 53 weeks ended September 3, 2023, compared to $5,158 million for the previous year, marking an increase of 22.4%[181]. Assets and Liabilities - Total assets as of September 3, 2023, were $68,994 million, up from $64,166 million as of August 28, 2022, indicating a growth of 7.0%[184]. - Total current liabilities were $33,583 million, an increase from $31,998 million in the previous year, reflecting a growth of 4.9%[184]. - Long-term debt with fixed interest rates was $6,484 million[153]. - Long-term debt, excluding the current portion, decreased to $5,377 million from $6,484 million, a reduction of 17.1% year-over-year[184]. Cash Flow and Investments - Cash and cash equivalents increased to $13,700 million from $10,203 million, a rise of 34.5% year-over-year[184]. - The company reported net cash provided by operating activities of $11,068 million for the fiscal year, up from $7,392 million in the prior year, indicating a significant increase of 49.5%[189]. - The company reported a net cash used in investing activities of $4,972 million, an increase from $3,915 million in the previous year, indicating a rise of 27%[189]. - The total short-term investments at the end of 2023 were $1,534 million, with available-for-sale securities recorded at $633 million[244]. Employee and Labor Costs - The company employed 316,000 employees worldwide at the end of 2023, an increase from 304,000 in 2022[25]. - In March 2023, the company raised the top of the wage scales by $0.85 per hour and increased the starting wage to at least $18.50 for entry-level positions in the U.S.[29]. - The company operates on a seven-day, 70-hour week, which helps maintain lower labor costs relative to sales volume[16]. Operational Metrics - Gasoline operations represented about 13% of total net sales in 2023, with 692 gas stations operated by the company[18]. - E-commerce operations accounted for approximately 6% of total net sales in 2023, reflecting the company's strategy to enhance online offerings[19]. - Costco operated 861 warehouses worldwide as of September 3, 2023, with 591 located in the United States, indicating continued market expansion[191]. Tax and Legal Matters - Total provision for income taxes in 2023 was $2,195 million, representing an effective tax rate of 25.9%, compared to $1,925 million and 24.6% in 2022[278]. - The company recorded immaterial accruals for various legal proceedings, with potential losses being monitored[290]. - The company reached a settlement agreement in principle for an immaterial amount in a class action lawsuit in September 2023[294]. Stock and Dividends - Cash dividends declared in 2023 totaled $3.84 per share, compared to $3.38 per share in 2022, reflecting a year-over-year increase of 13.6%[266]. - The Company repurchased 1,341,000 shares in 2023 at an average price of $504.68 per share, totaling $677 million, compared to 863,000 shares repurchased in 2022 for $442 million[268]. - The Company’s stock repurchase program has a remaining authorization of $3,563 million as of the end of 2023, with the program set to expire in January 2027[267].