Net sales for the first thirty-six weeks of fiscal 2007 increased 9% to $43.00 billion from $39.47 billion during the first thirty-six weeks of fiscal 2006. Excluding the sales return reserve adjustments recorded in the second and third quarters, net sales for the first thirty-six weeks of fiscal 2007 would have been $43.45 billion, a 10% increase over the prior year.
Net income for the first thirty-six weeks of fiscal 2007 was $710.4 million, or $1.54 per diluted share, compared to net income for the first thirty-six weeks of fiscal 2006 of $747.6 million, or $1.55 per diluted share.
Excluding the adjustments outlined above, as well as two additional non-recurring items recorded in the second quarter of fiscal 2007 ((i) a pre-tax charge of $46.4 million associated with reducing adverse income tax consequences to our employees arising from the review of stock options by a special committee of the Board of Directors; and
(ii) a $10.1 million pre-tax benefit primarily to merchandise costs for an excise tax refund on prior merchandise sales of phone cards), net income for the first thirty-six weeks of fiscal 2007 would have been $793.8 million, or $1.72 per diluted share, an 11% increase in earnings per diluted share over the prior year.
A conference call to discuss these third quarter results is scheduled for 8:00 a.m. (PT) today, May 31, 2007, and is available via a webcast on company's website in investor section.
Costco Wholesale Corporation
marketing@alchempro.com
