As previously disclosed, exclusive of these items, the Company estimated its "normalized" fourth quarter and fiscal year 2005 earnings per share figures were $.66 and $2.04, respectively.
According to Richard Galanti, Chief Financial Officer of Costco, "The principal factor leading to our revised fourth quarter earnings outlook is lower-than-planned gross margins."
"In addition, approximately $.03 per share of the fourth quarter revision relates to accruing a reserve for income taxes of up to $14.8 million related to a non-recurring foreign tax assessment for a structure that had been utilized by the Company during fiscal years 2000-2005 and that was subsequently discontinued."
"We remain positive in our outlook for fiscal 2007 and beyond; and we would expect to open at least 35 new locations during the coming fiscal year."
Costco will hold a conference call at 8:00 AM PDT (11:00 AM EDT) this morning, August 30th, with Jim Sinegal, President and CEO, and Richard Galanti.
Costco currently operates 487 warehouses, including 358 in the United States and Puerto Rico, 68 in Canada, 18 in the United Kingdom, five in Korea, four in Taiwan, five in Japan and 29 in Mexico.
Costco Wholesale Corporation
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