Costco (NASDAQ: COST) is the largest membership warehouse club chain in the United States. As of July 2009 it is the third largest retailer in the United States, where it originated, and the ninth largest in the world.[1][2] As of October 2007, Costco is the largest retailer of fine wine in the world
Costco Wholesale Corporation (Costco) operates membership warehouses that offer its members low prices on a limited selection of branded and selected private-label products in a range of merchandise categories. The Company buys the majority of our merchandise directly from manufacturers and route it to a cross-docking consolidation point (depot) or directly to its warehouses. Its depots receive container-based shipments from manufacturers and reallocate these goods for shipment to its individual warehouses, generally in less than 24 hours. Costco’s warehouse format averages approximately 143,000 square feet. Its warehouses operate on a seven-day, 69-hour week. It carries an average of approximately 3,900 active stock keeping units (SKUs) per warehouse in its core warehouse business. Many consumable products are offered for sale only in case, carton, or multiple-pack quantities only.
Costco Mexico, the Company’s 50%-owned joint venture, operated 32 warehouses as of August 29, 2010. Its electronic commerce businesses, costco.com in the United States and costco.ca in Canada, provide its members additional products generally not found in its warehouses, in addition to services, such as digital photo processing, pharmacy, travel, and membership services. The Company’s warehouses accept cash, checks, certain debit cards, American Express and a private label Costco credit card. Costco has two primary types of members: Business and Gold Star (individual).
During the fiscal year ended August 29, 2010 (fiscal 2010), sundries (including candy, snack foods, tobacco, alcoholic and nonalcoholic beverages and cleaning and institutional supplies) accounted for 23% of Costco’s net sales; hardlines (including major appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, toys, seasonal items and automotive supplies) accounted for 18% of Costco’s net sales; food (including dry and institutionally packaged foods) accounted for 21% of its net sales; softlines (including apparel, domestics, jewelry, housewares, media, home furnishings, cameras and small appliances) accounted for 10% of its net sales; fresh food (including meat, bakery, deli and produce) accounted for 12% of its net sales, and ancillary and other (including gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel) accounted for 16% of the Company’s net sales.
The Company competes with Wal-Mart, Target, Kohl’s, Amazon, Lowe’s, Home Depot, Office Depot, PetSmart, Staples, Trader Joe’s, Whole Foods, Best Buy and Barnes & Noble.
OVERALL
Beta: 0.75
Market Cap (Mil.): $35,171.57
Shares Outstanding (Mil.): 436.86
Annual Dividend: 0.96
Yield (%): 1.19
FINANCIALS
COST.O Industry Sector
P/E (TTM): 25.57 31.68 13.77
EPS (TTM): 21.44 -- --
ROI: 10.41 9.94 1.32
ROE: 12.58 15.69 2.19
Name Age Since Current Position
Brotman, Jeffrey 68 1994 Chairman of the Board
Sinegal, James 74 2010 Chief Executive Officer, Director
Jelinek, W. Craig 58 2010 President, Chief Operating Officer, Director
Galanti, Richard 54 1995 Chief Financial Officer, Executive Vice President, Director
Moulton, Paul 59 2010 Executive Vice President, Chief Information Officer
Portera, Joseph 58 2000 Executive Vice President and Chief Operating Officer - Eastern and Canadian Divisions
Zook, Dennis 61 1993 Executive Vice President and Chief Operating Officer - Southwest and Mexico Divisions
Schutt, Douglas 51 2010 Executive Vice President, Chief Operating Officer - Merchandising
Walker, Thomas 70 2004 Executive Vice President - Construction, Distribution and Traffic
McKay, John 53 2010 Executive Vice President and Chief Operating Officer - Northern and Midwest Division
James, Hamilton 60 2005 Lead Independent Director
Libenson, Richard 68 1993 Director
Meisenbach, John 74 Director
Munger, Charles 87 1997 Independent Director
Ruckelshaus, Jill 73 1996 Independent Director
Carson, Benjamin 59 1999 Independent Director
Evans, Daniel 85 2003 Independent Director
Gates, William 85 2003 Independent Director
Decker, Susan 48 2004 Independent Director
Raikes, Jeffrey 52 2008 Independent Director
Costco Wholesale Corp
999 Lake Drive
Issaquah WA 98027
P: +1425.3138100
F: +1425.3138103
Costco Wholesale Corporation (Costco) operates membership warehouses that offer its members low prices on a limited selection of branded and selected private-label products in a range of merchandise categories. The Company buys the majority of our merchandise directly from manufacturers and route it to a cross-docking consolidation point (depot) or directly to its warehouses. Its depots receive container-based shipments from manufacturers and reallocate these goods for shipment to its individual warehouses, generally in less than 24 hours. Costco’s warehouse format averages approximately 143,000 square feet. Its warehouses operate on a seven-day, 69-hour week. It carries an average of approximately 3,900 active stock keeping units (SKUs) per warehouse in its core warehouse business. Many consumable products are offered for sale only in case, carton, or multiple-pack quantities only.
Costco Mexico, the Company’s 50%-owned joint venture, operated 32 warehouses as of August 29, 2010. Its electronic commerce businesses, costco.com in the United States and costco.ca in Canada, provide its members additional products generally not found in its warehouses, in addition to services, such as digital photo processing, pharmacy, travel, and membership services. The Company’s warehouses accept cash, checks, certain debit cards, American Express and a private label Costco credit card. Costco has two primary types of members: Business and Gold Star (individual).
During the fiscal year ended August 29, 2010 (fiscal 2010), sundries (including candy, snack foods, tobacco, alcoholic and nonalcoholic beverages and cleaning and institutional supplies) accounted for 23% of Costco’s net sales; hardlines (including major appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, toys, seasonal items and automotive supplies) accounted for 18% of Costco’s net sales; food (including dry and institutionally packaged foods) accounted for 21% of its net sales; softlines (including apparel, domestics, jewelry, housewares, media, home furnishings, cameras and small appliances) accounted for 10% of its net sales; fresh food (including meat, bakery, deli and produce) accounted for 12% of its net sales, and ancillary and other (including gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel) accounted for 16% of the Company’s net sales.
The Company competes with Wal-Mart, Target, Kohl’s, Amazon, Lowe’s, Home Depot, Office Depot, PetSmart, Staples, Trader Joe’s, Whole Foods, Best Buy and Barnes & Noble.
OVERALL
Beta: 0.75
Market Cap (Mil.): $35,171.57
Shares Outstanding (Mil.): 436.86
Annual Dividend: 0.96
Yield (%): 1.19
FINANCIALS
COST.O Industry Sector
P/E (TTM): 25.57 31.68 13.77
EPS (TTM): 21.44 -- --
ROI: 10.41 9.94 1.32
ROE: 12.58 15.69 2.19
Name Age Since Current Position
Brotman, Jeffrey 68 1994 Chairman of the Board
Sinegal, James 74 2010 Chief Executive Officer, Director
Jelinek, W. Craig 58 2010 President, Chief Operating Officer, Director
Galanti, Richard 54 1995 Chief Financial Officer, Executive Vice President, Director
Moulton, Paul 59 2010 Executive Vice President, Chief Information Officer
Portera, Joseph 58 2000 Executive Vice President and Chief Operating Officer - Eastern and Canadian Divisions
Zook, Dennis 61 1993 Executive Vice President and Chief Operating Officer - Southwest and Mexico Divisions
Schutt, Douglas 51 2010 Executive Vice President, Chief Operating Officer - Merchandising
Walker, Thomas 70 2004 Executive Vice President - Construction, Distribution and Traffic
McKay, John 53 2010 Executive Vice President and Chief Operating Officer - Northern and Midwest Division
James, Hamilton 60 2005 Lead Independent Director
Libenson, Richard 68 1993 Director
Meisenbach, John 74 Director
Munger, Charles 87 1997 Independent Director
Ruckelshaus, Jill 73 1996 Independent Director
Carson, Benjamin 59 1999 Independent Director
Evans, Daniel 85 2003 Independent Director
Gates, William 85 2003 Independent Director
Decker, Susan 48 2004 Independent Director
Raikes, Jeffrey 52 2008 Independent Director
Costco Wholesale Corp
999 Lake Drive
Issaquah WA 98027
P: +1425.3138100
F: +1425.3138103
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