News Release

Costco Wholesale Corporation Reports Second Quarter and Year-to-date Operating Results for Fiscal 2002 and February Sales Results
Net sales for the second quarter of fiscal 2002 increased 13% to $9.21 billion from $8.16 billion during the second quarter of fiscal 2001. Net income for the second quarter of fiscal 2002 increased 9% to $192.6 million, or $.41 per diluted share, compared to $176.6 million, or $.38 per diluted share, during the second quarter of fiscal 2001.
Net sales for the first half of fiscal 2002 increased 12% to $17.51 billion from $15.66 billion during the first half of fiscal 2001. Net income for the first half of fiscal 2002 increased 5% to $322.2 million, or $.68 per diluted share, compared to net income for the first half of fiscal 2001 of $306.1 million, or $.65 per diluted share.
In addition to reporting second quarter fiscal year 2002 operating results, the Company today reported net sales of $2.77 billion for the 4-week retail reporting month of February, the four weeks ended March 3, 2002, an increase of 13% from $2.45 billion in the same four-week period of the prior fiscal year.
For the 6-month retail reporting period of September through February, the twenty-six weeks ended March 3, 2002, which includes the first two weeks of the Company's fiscal third quarter, the Company reported net sales of $18.90 billion, an increase of 12% from $16.90 billion during the comparable period of the prior fiscal year.
Comparable sales for the fiscal second quarter (12 weeks) and fiscal first half (24 weeks) of fiscal 2002, both ended February 17, 2002, are as follows:
12 Weeks 24 Weeks ------------- ------------- US 8% 7% International 2% 0% Total Company 7% 6% ============= ============= Comparable sales for the 4-week retail reporting month of February and the 26-week retail reporting period of September through February are as follows: 4 Weeks 26 Weeks ------------- ------------- US 8% 7% International 3% 0% Total Company 8% 6% ============= =============Costco currently operates 386 warehouses, including 285 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. The Company plans to open 14 to 16 additional new warehouses (including the relocation of three to four warehouses to larger and better-located facilities) prior to the end of its fiscal year ending September 1, 2002.
A conference call to discuss these second quarter results is scheduled for 8:00 a.m. (PST) today (March 5th), 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 24 Weeks Ended ------------------------- ------------------------ Feb. 17, Feb. 18, Feb. 17, Feb.18, 2002 2001 2002 2001 ----------- ------------- ------------- ---------- REVENUE Net sales.........$9,208,413 $ 8,159,980 $ 17,505,489 $15,658,959 Membership fees and other....... 174,439 146,329 343,916 284,628 ----------- ------------- ------------- ---------- Total revenue... 9,382,852 8,306,309 17,849,405 15,943,587 OPERATING EXPENSES Merchandise costs. 8,212,030 7,275,958 15,646,427 13,989,602 Selling, general and administrative.. 840,005 731,411 1,626,123 1,422,538 Preopening expenses........ 8,616 10,572 30,750 30,252 Provision for impaired assets and closing costs........... 3,000 1,000 11,550 2,000 ----------- ------------- ------------- ---------- ----------- ------------- ------------- ---------- Operating income...... 319,201 287,368 534,555 499,195 OTHER INCOME (EXPENSE) Interest expense.. (6,199) (8,902) (12,437) (15,866) Interest income and other....... 7,926 15,829 14,903 26,834 ----------- ------------- ------------- ---------- ----------- ------------- ------------- ---------- INCOME BEFORE INCOME TAXES.... 320,928 294,295 537,021 510,163 Provision for income taxes.... 128,372 117,718 214,809 204,065 ----------- ------------- ------------- ---------- ----------- ------------- ------------- ---------- NET INCOME..........$ 192,556 $ 176,577 $ 322,212 $ 306,098 =========== ============= ============= ========== =========== ============= ============= ========== NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE: Basic.............$ 0.43 $ 0.39 $ 0.71 $ 0.68 =========== ============= ============= ========== ----------- ------------- ------------- ---------- Diluted...........$ 0.41 $ 0.38 $ 0.68 $ 0.65 =========== ============= ============= ========== =========== ============= ============= ========== Shares used in calculation (000's) Basic............. 452,882 448,788 452,436 448,234 Diluted........... 479,931 475,488 478,749 474,543
CONTACT: Costco Wholesale Corporation Richard Galanti, 425/313-8203 Bob Nelson, 425/313-8255