Costco net sales up 10% to $11.75bn for first 36 weeks of fiscal 2005
26 May '05
3 min read
the net effect of these two items positively impacted the company's second quarter and year-to-date earnings figures by $42.1 million, or $0.08 per share. without the impact of the $52.1 million income tax benefit and the $16.0 million ($10.0 million after-tax) cumulative charge to preopening expenses, net income for the first thirty-six weeks of fiscal 2005 would have been $666.3 million or $1.36 per share, reflecting a 14% increase in net income over the first thirty-six weeks of the prior year and an income tax rate for the first thirty-six weeks of 37.50%.
reported net sales were reduced by the implementation of emerging issues task force issue no. 03-10 ("eitf 03-10"), "application of issue no. 02-16 by resellers to sales incentives offered to consumers by manufacturers," which was effective at the beginning of the company's fiscal 2004 third quarter, february 16, 2004. eitf 03-10, which primarily impacts costco's vendor coupon and rebate programs, reduces net sales and merchandise costs by an equal amount and, therefore, does not affect the company's consolidated gross profit or net income.
sales for the twelve-week third quarters are on a comparable after-coupon basis; however, had eitf 03-10 been in effect for the comparable 36-week reporting period in fiscal 2004, the reported net sales increase relative to that period this year would have been 11 percent; and the comparable sales increase for the 36-week reporting period would have been le sales increase for the 36-week reporting period would have been 8 percent.
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