Skip to Main Content
INVESTOR RELATIONS

News Release

Printer Friendly Version View printer-friendly version << Back
May 30, 2002 at 4:02 AM EDT

Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2002

ISSAQUAH, Wash., May 30, 2002 (BUSINESS WIRE) -- Costco Wholesale Corporation (Nasdaq: COST) announced today its operating results for the third quarter (12 weeks) and the first thirty-six weeks of fiscal 2002, ended May 12, 2002.

Net sales for the third quarter of fiscal 2002 increased 12% to $8.44 billion from $7.56 billion during the third quarter of fiscal 2001. On a comparable warehouse basis, that is warehouses open at least a year, net sales increased 6%.

Net income for the third quarter of fiscal 2002 increased 24% to $130.4 million, or $.28 per share (diluted), from $105.3 million, or $.23 per share (diluted), during the third quarter of fiscal 2001.

Net sales for the first thirty-six weeks of fiscal 2002 increased 12% to $25.94 billion from $23.22 billion during the first thirty-six weeks of fiscal 2001. Comparable warehouse sales during the first thirty-six weeks of fiscal 2002 increased 6% over the prior year's level.

Net income for the first thirty-six weeks of fiscal 2002 increased 10% to $452.6 million, or $.96 per diluted share, compared to net income for the first thirty-six weeks of fiscal 2001 of $411.4 million, or $.88 per diluted share.

Costco currently operates 389 warehouses, including 285 in the United States, 60 in Canada, 14 in the United Kingdom, five in Korea, three in Taiwan, two in Japan and 20 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com. The Company plans to open seven additional new warehouses (including the relocation of two warehouses to larger and better-located facilities) prior to the end of its 2002 fiscal year on September 1, 2002, and an additional 16 to 18 new warehouses (including one relocation of an existing warehouse to a larger and better-located facility) prior to the end of calendar year 2002.

A conference call to discuss these third quarter results is scheduled for 8:00 a.m. (PDT) today, May 30, 2002, and is available via a webcast on www.costco.com (go to Customer Service, Investor Relations, Financial Releases and click on the "Live Webcast" icon).

Certain statements contained in this release 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 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, conditions affecting the acquisition, development, ownership or use of real estate, actions of vendors, and other risks identified from time to time in the Company's public statements and reports filed with the SEC.

                     COSTCO WHOLESALE CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             (dollars in thousands, except per share data)
                              (unaudited)
                      12 Weeks Ended              36 Weeks Ended
                  -------------------------- -------------------------
                  May 12, 2002  May 13, 2001 May 12, 2002 May 13, 2001
                  ------------  ------------ ------------ ------------
REVENUE
  Net sales       $  8,436,807 $  7,563,494 $ 25,942,296 $ 23,222,453
  Membership fees
   and other           179,940      155,401      523,856      440,029
                  ------------ ------------ ------------ ------------
    Total revenue    8,616,747    7,718,895   26,466,152   23,662,482
OPERATING EXPENSES
  Merchandise
   costs             7,583,251    6,825,636   23,229,678   20,815,238
  Selling, general
   and
   administrative      806,617      705,858    2,432,740    2,128,396
  Preopening
   expenses              6,077       12,751       36,827       43,003
  Provision for
   impaired assets
   and closing
   costs                 4,500           --       16,050        2,000
                  ------------ ------------ ------------ ------------
    Operating
    income             216,302      174,650      750,857      673,845
OTHER INCOME
(EXPENSE)
  Interest expense      (8,643)      (9,023)     (21,080)     (24,889)
  Interest income
   and other             9,624        9,801       24,527       36,635
                  ------------ ------------ ------------ ------------
INCOME BEFORE
INCOME TAXES           217,283      175,428      754,304      685,591
  Provision for
   income taxes         86,913       70,171      301,722      274,236
                  ------------ ------------ ------------ ------------
NET INCOME        $    130,370 $    105,257 $    452,582 $    411,355
                  ============ ============ ============ ============
NET INCOME PER
COMMON AND COMMON
EQUIVALENT SHARE:
  Basic           $        .29 $        .23 $       1.00 $        .92
                  ============ ============ ============ ============
  Diluted         $        .28 $        .23 $        .96 $        .88
                  ============ ============ ============ ============
Shares used in
calculation (000's)
  Basic                454,272      450,195      453,047      448,886
  Diluted              480,256      475,840      479,250      474,973

CONTACT: Costco Wholesale Corporation Richard Galanti, 425/313-8203 Bob Nelson, 425/313-8255