Costco Wholesale Corporation Reports September Sales Results

Financial Highlights • Adobe achieved record quarterly revenue of $2.20 billion in its second quarter of fiscal year 2018, which represents 24 percent year-over-year revenue growth. • Operating income grew 39 percent and net income grew 77 percent year-over-year on a GAAP-basis; operating income grew 33 percent and net income grew 62 percent year-over-year on a non-GAAP basis. • Cash flow from operations was $976 million, and deferred revenue grew 27 percent year-over-year to approximately $2.63 billion. Click Read More below for additional information.

Gross profit increased 5% to $219.1 million, or 52.2% of sales, compared to $209.1 million, or 58.5% of sales, in the second quarter of 2021. The 630 basis point decrease in gross margin was primarily driven by higher inbound freight, higher product costs and the unfavorable impact of foreign currency exchange rates, partially offset by price increases. Selling, general, and administrative (“SG&A”) expenses increased 10% to $150.8 million, compared to $136.7 million in the second quarter of 2021. As a percentage of sales, SG&A expenses decreased 230 basis points to 35.9% from 38.2% in the prior year period, primarily driven by non-variable expense leverage on higher sales, partially offset by higher variable expenses driven by higher distribution and logistics costs. Operating income decreased 6% to $68.3 million, or 16.3% of sales, compared to $72.4 million, or 20.2% of sales during the prior year quarter. Net income decreased 18% to $46.3 million, or 11.0% of sales, compared to $56.2 million, or 15.7% of sales in the prior year quarter; Net income per diluted share decreased 16% to $0.53, compared to $0.63 per diluted share in the prior year quarter.

Strong gains in all categories led to a 13% increase in unit sales of print books in the week ended Oct. 24, 2020, over the comparable week in 2019, at outlets that report to NPD BookScan. The double-digit increase came despite only a few new books making a splash. Matthew McConaughey’s Greenlights was the #1 title in the week, selling about 78,000 copies and boosting sales in the adult nonfiction category 6.2% over the week ended Oct. 26, 2019. Another new nonfiction release, America Under Assault, Vol. 3 by Tom Fitton, sold about 40,000 copies, putting it in fourth place on the overall bestseller list. The juvenile and YA categories all had gains of at least 20% in the week, led by a combination of older frontlist and backlist books. The 20.8% increase in juvenile fiction was led by sales of Dav Pilkey’s Grime and Punishment (Dog Man #9), which sold approximately 45,000 copies in the week and more than 743,000 copies since its release on September 1.