ISSAQUAH, Wash. -- Costco Cos. here said last week it has signed a lease to open its first warehouse in Japan -- a single-level facility of 135,000 square feet scheduled to open in late April in Fukuoka, in southern Japan.
veloped and constructed by Torius, a real-estate development company based in Fukuoka.
According to Jim Sinigal, Costco president and chief executive officer, "We believe Japan has the potential to be a strong market for Costco. This project allows Costco to operate its standard U.S. format in Japan, [and] we are continuing our search for sites in Greater Tokyo and other areas of Japan, contingent on the success of the first unit."
In May, Costco disclosed the formation of a joint venture in the Republic of Korea with Shinsegae Department Store to acquire three membership warehouse clubs, which Shinsegae has operated since 1993 under a license agreement with Costco. Costco also operates 56 warehouses in Canada, seven in the United Kingdom, one in Taiwan and, with a joint-venture partner, 14 in Mexico, in addition to 211 U.S. locations.
The company said sales rose 10% to $5.2 billion for the 12-week third quarter and 11% to $16.3 billion for the year to date, while same-store sales increased 8% for the quarter and 8% for the 36 weeks.
Net income rose 29% to $85.2 million for the quarter and 58% to $309.1 million for the year to date, which included a $65-million pretax non-cash charge in the first quarter reflecting a change in accounting standards.
Qtr Ended 5/10/98 5/11/97
Sales $5.2 billion $4.8 billion
Net Income $85.2 million $66.3 million
Inc/Share 38 cents 31 cents
36 Weeks 1998 1997
Sales $16.3 billion $14.7 billion
Net Income $309.1 million $195.5 million
Inc/Share $1.37 93 cents
Without a $65-million pretax noncash charge for adopting new accounting standards, net income would have been up 32% to $234.2 million, or $1.10 per share.