News Release

Costco Wholesale Corporation Reports First Quarter Fiscal 2002 Operating Results
Sales for the first quarter of fiscal 2002 increased 11% to $8.30 billion from $7.50 billion during the first quarter of fiscal 2001. On a comparable warehouse basis, that is warehouses open at least a year, net sales increased by 5%.
Net income for the first quarter of fiscal 2002 was $129.7 million, or $.28 per diluted share, compared to $129.5 million, or $.28 per diluted share, during the first quarter of fiscal 2001. Net income in the first quarter of fiscal 2002 was impacted by an $8.6 million ($5.1 million after-tax, or $.01 per diluted share) provision for closing costs primarily related to the Company's reorganization and consolidation of its administrative operations in Canada.
Costco currently operates 385 warehouses, including 284 in the United States, 60 in Canada, 11 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.
A conference call to discuss these first quarter results is scheduled for 8:00 a.m. (PST), 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).
COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) (unaudited) 12 Weeks Ended ----------------------------- November 25, November 26, 2001 2000 ----------------------------- REVENUE Net sales $8,297,076 $7,498,979 Membership fees and other 169,477 138,299 ----------------------------- Total revenue 8,466,553 7,637,278 OPERATING EXPENSES Merchandise costs 7,434,397 6,713,644 Selling, general and administrative 786,118 691,127 Preopening expenses 22,134 19,680 Provision for impaired assets and closing costs 8,550 1,000 ----------------------------- Operating income 215,354 211,827 OTHER INCOME (EXPENSE) Interest expense (6,238) (6,964) Interest income and other 6,977 11,005 ----------------------------- INCOME BEFORE INCOME TAXES 216,093 215,868 Provision for income taxes 86,437 86,347 ----------------------------- NET INCOME $129,656 $129,521 ============================= NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE: ----------------------------- Basic $0.29 $0.29 ============================= Diluted $0.28 $0.28 ============================= Shares used in calculation (000's) Basic 451,990 447,676 Diluted 477,395 473,920
CONTACT: Costco Wholesale Corporation Richard Galanti, 425/313-8203 Bob Nelson, 425/313-8255