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Exhibit 99.1

 

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COSTCO WHOLESALE CORPORATION REPORTS THIRD QUARTER AND YEAR-TO-DATE OPERATING RESULTS FOR FISCAL YEAR 2013

ISSAQUAH, Wash., May 30, 2013 – Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) announced today its operating results for the third quarter (twelve weeks) and the first thirty-six-weeks of fiscal 2013, ended May 12, 2013. Net sales for the quarter increased eight percent, to $23.55 billion, from $21.85 billion last year. Net sales for the first thirty-six weeks increased eight percent, to $71.10 billion, from $65.54 billion last year.

Comparable sales were as follows:

 

     12 Weeks     36 Weeks  

U.S.

     6     6

International

     4     6

Total

     5     6
  

 

 

   

 

 

 

Changes in gasoline prices and foreign exchange rates had negative impacts on comparable sales for the 12-week period; and immaterial impacts for the 36-week period. Excluding these effects, comparable sales were as follows:

 

     12 Weeks     36 Weeks  

U.S.

     7     6

International

     7     6

Total

     7     6
  

 

 

   

 

 

 

Net income for the quarter was $459 million, or $1.04 per diluted share, compared to $386 million, or $.88 per diluted share, last year. Net income for the first thirty-six weeks was $1.42 billion, or $3.23 per diluted share, compared to $1.10 billion, or $2.50 per diluted share, last year. Net income for the thirty-six weeks was positively impacted by a second quarter $62 million ($.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid in December 2012 to the Company 401(k) plan participants.

Costco currently operates 627 warehouses, including 449 in the United States and Puerto Rico, 85 in Canada, 33 in Mexico, 24 in the United Kingdom, 15 in Japan, nine in Taiwan, nine in Korea and three in Australia. The Company plans to open up to an additional nine new warehouses prior to the end of its fiscal year on September 1, 2013. Costco also operates electronic commerce web sites, at www.costco.com (U.S.), www.costco.ca (Canada), and www.costco.co.uk (United Kingdom).

A conference call to discuss these third quarter operating results is scheduled for 8:00 a.m. (PT) today, May 30, 2013, and is available via a webcast on www.costco.com (click on Investor Relations and “Play Webcast”).

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. Such forward-looking statements involve risks and uncertainties that may cause actual


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events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, conditions affecting the acquisition, development, ownership or use of real estate, actions of vendors, rising costs associated with employees (including health care costs), energy, and certain commodities, geopolitical conditions, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission.

CONTACTS: Costco Wholesale Corporation

Richard Galanti, 425/313-8203, Bob Nelson, 425/313-8255, Jeff Elliott, 425/313-8264


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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

 

     12 Weeks Ended     36 Weeks Ended  
     May 12, 2013     May 6, 2012     May 12, 2013     May 6, 2012  

REVENUE

        

Net sales

   $ 23,552      $ 21,849      $ 71,099      $ 65,538   

Membership fees

     531        475        1,570        1,381   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     24,083        22,324        72,669        66,919   

OPERATING EXPENSES

        

Merchandise costs

     21,038        19,543        63,530        58,613   

Selling, general and administrative

     2,313        2,152        7,006        6,474   

Preopening expenses

     10        6        34        22   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     722        623        2,099        1,810   

OTHER INCOME (EXPENSE)

        

Interest expense

     (25     (19     (63     (73

Interest income and other, net

     15        18        61        65   
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     712        622        2,097        1,802   

Provision for income taxes

     248        217        658        657   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interests

     464        405        1,439        1,145   

Net income attributable to noncontrolling interests

     (5     (19     (17     (45
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO COSTCO

   $ 459      $ 386      $ 1,422      $ 1,100   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:

        

Basic

   $ 1.05      $ 0.89      $ 3.27      $ 2.53   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 1.04      $ 0.88      $ 3.23      $ 2.50   
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in calculation (000’s)

        

Basic

     436,488        433,791        435,293        434,180   

Diluted

     440,780        439,166        439,738        439,748   

Cash dividends declared per common share

   $ 0.31      $ 0.00      $ 7.86      $ 0.48   


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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

(unaudited)

Subject to Reclassifications

 

     May 12,
2013
     September 2,
2012
 
ASSETS      

Cash and cash equivalents

   $ 5,448       $ 3,528   

Short-term investments

     1,062         1,326   

Receivables, net

     1,134         1,026   

Merchandise inventories

     7,635         7,096   

Deferred income taxes and other current assets

     584         550   
  

 

 

    

 

 

 

Total current assets

     15,863         13,526   

Property and equipment, net

     13,546         12,961   

Other assets

     597         653   
  

 

 

    

 

 

 

TOTAL ASSETS

   $ 30,006       $ 27,140   
  

 

 

    

 

 

 
LIABILITIES AND EQUITY      

Short-term borrowings

   $ 54       $ 0   

Accounts payable

     7,788         7,303   

Accrued salaries and benefits

     1,911         1,832   

Other current liabilities

     2,544         2,024   

Deferred membership fees

     1,212         1,101   
  

 

 

    

 

 

 

Total current liabilities

     13,509         12,260   

Long-term debt, excluding current portion

     4,887         1,381   

Deferred income taxes and other liabilities

     963         981   
  

 

 

    

 

 

 

Total liabilities

     19,359         14,622   
  

 

 

    

 

 

 

Total Costco stockholders’ equity

     10,472         12,361   

Noncontrolling interests

     175         157   
  

 

 

    

 

 

 

Total equity

     10,647         12,518   
  

 

 

    

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 30,006       $ 27,140