Costco Wholesale Corporation (NASDAQ:COST) Q3 2020 Earnings Conference Call - Final Transcript
May 28, 2020 • 04:30 pm ET
Ladies and gentlemen, thank you for standing by and welcome to the Q3 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. [Operator Instructions]
And I would now like to hand the call over to Mr. Richard Galanti, CFO. Please go ahead sir.
Richard A. Galanti
Thank you, Joseph, and good afternoon to everyone. I'll start by stating that these discussions will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause actual events, results and/or performance to differ materially from those indicated by such statements. The risks and uncertainties include, but are not limited to those outlined in today's call, as well as other risks identified from time to time in the company's public statements and reports filed with the SEC. Forward-looking statements speak only as of the date they are made and the company does not undertake to update these statements, except as required by law.
In today's press release, we reported operating results for the third quarter of fiscal 2020, the 12 weeks ended May 10. Reported net income for the quarter came in at $838 million or $1.89 per diluted share. This compared to $906 million or $2.05 per diluted share last year in the third quarter. Now, this year's third quarter was negatively impacted by direct expenses of $283 million pretax or $0.47 per diluted share, from incremental wage safety and sanitation costs related to COVID-19. And last year's third quarter number of $2.05 included the benefit from a non-recurring tax item of $73 million or $0.16 per diluted share.
Net sales for the quarter increased 7.3% to $36.45 billion, up from $33.96 billion last year in the third quarter. On a same-store or comparable sales basis for the third quarter, for the 12 weeks on a reported basis, the US was a 5.9%, excluding gas deflation and FX impact, the 5.9% would have been for the 12 weeks at 8.0%. Canada, on a reported basis was minus 2.5%, ex-gas deflation and FX plus 3.0%. Other international came in on a reported basis at 6.2% and again ex-gas deflation and FX plus 12.2%. All told, the total company came in with a reported 4.8% and again ex-gas deflation and FX. The 4.8% would have been 7.8%.
I might also note that e-commerce on a reported basis was 64.5% comp and ex-gas deflation or ex-FX 66.1%. Now foreign currencies relative to the US dollar negatively impacted sales by approximately 110 basis points and gasoline price deflation negatively impacted sales by approximately 190 basis points for the total company therefore to 300 basis points. Additionally, gasoline volumes or gallons were down about 20% year-over-year in the quarter as a result of less driving due to the pandemic. These adjusted figures -- the impact of gasoline gallons is not in the adjusted figures that I