Home / Knowledge / News / Fashion / Tax benefits strengthen Costco's Q2 income

Tax benefits strengthen Costco's Q2 income

02
Mar '06
Fashion retailer Costco Wholesale Corporation announced its operating results for the second quarter (12 weeks) and first half (24 weeks) of fiscal 2006, both ended February 12, 2006.

Net sales for the second quarter of fiscal 2006 increased 11 percent to $13.78 billion from $12.41 billion during the second quarter of fiscal 2005.

Net income for the second quarter of fiscal 2006 was $296.2 million, or $.62 per diluted share, compared to $305.5 million, or $.62 per diluted share, during the second quarter of fiscal 2005.

Net income during last year's fiscal 2005 second quarter was positively impacted by a one-time $52.1 million income tax benefit, resulting primarily from the settlement of a transfer pricing dispute between the United States and Canada (covering the years 1996-2003).

Additionally, during last year's second quarter the Company adjusted its method of accounting for leases (entered into over the past twenty years), primarily related to ground leases at certain owned warehouse locations that did not require rental payments during the period of construction, and recorded a cumulative pre-tax, non-cash charge of $16.0 million ($10.0 million after-tax) as a preopening expense.

Without these charges net income for the second quarter of fiscal 2005 would have been $263.4 million or $.54 per diluted share.

The current quarter's reported earnings per share of $.62 represents a 15 percent increase over the prior year's adjusted earnings per share of $.54.


Must ReadView All

Pic: Pexels/Hugo Heimendinger

Textiles | On 25th Feb 2021

Vietnam's growth outlook linked to response to new

Vietnam’s growth prospects will depend on how well and quickly its...

Pic: Puma

Apparel/Garments | On 25th Feb 2021

Puma reports sales of €5.2 bn in FY20

Puma, a Germany-based manufacturer of athletic and casual footwear,...

Pic: Zalando

E-commerce | On 25th Feb 2021

Zalando expands online store Zircle to Sweden & Denmark

Zalando has expanded Zircle, a webshop dedicated to consumers looking ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

African fashion has a strong identity

Hannah Lane, Redress

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Textile Industry, Head honchos

Textile Industry
Head honchos

Cooperate and collaborate for greater good

Poonam Naik Desai,

Poonam Naik Desai

Peekaboo is a sustainable, high quality, luxury sleepwear brand providing...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Amanda Cioletti,

Amanda Cioletti

The entertainment/character segment lead as the largest sector for the...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search