News Release

Costco Wholesale Corporation Reports Third Quarter and Year-to-date Operating Results for Fiscal 2001
ISSAQUAH, Wash.--(BUSINESS WIRE)--May 31, 2001--Costco Wholesale Corporation ("Costco" or the "Company") (Nasdaq: COST) announced today its operating results for the third quarter (12 weeks) and the first thirty-six weeks of fiscal 2001, ended May 13, 2001.
Net sales for the third quarter of fiscal 2001 increased 12% to $7.56 billion from $6.77 billion during the third quarter of fiscal 2000. On a comparable warehouse basis, that is warehouses open at least a year, net sales increased 5%.
Net income for the third quarter of fiscal 2001 decreased 12% to $105.3 million, or $.23 per share (diluted), from $120.3 million, or $.26 per share (diluted), during the third quarter of fiscal 2000.
Net sales for the first thirty-six weeks of fiscal 2001 increased 10% to $23.22 billion from $21.21 billion during the first thirty-six weeks of fiscal 2000. Comparable warehouse sales during the first thirty-six weeks of fiscal 2001 increased 4% over the prior year's levels.
Net income for the first thirty-six weeks of fiscal 2001 decreased 5% to $411.4 million, or $.88 per diluted share, compared to net income for the first thirty-six weeks of fiscal 2000 of $431.3 million, or $.92 per diluted share.
Costco currently operates 360 warehouses, including 259 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 five additional new warehouses prior to the end of its 2001 fiscal year on September 2, 2001, and an additional 26 to 28 new warehouses (including four to five relocations of existing warehouses to larger and better-located facilities) prior to the end of calendar year 2001.
A conference call to discuss these third quarter results is scheduled for 8:00 a.m. (PDT) today, May 31, 2001, 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 13, 2001 May 7, 2000 May 13, 2001 May 7, 2000 ------------ ----------- ------------ ----------- REVENUE Net sales $7,563,494 $6,768,608 $23,222,453 $21,206,406 Membership fees and other 155,401 126,000 440,029 368,701 Total revenue 7,718,895 6,894,608 23,662,482 21,575,107 OPERATING EXPENSES Merchandise costs 6,825,636 6,084,246 20,815,238 18,996,814 Selling, general and administrative 705,858 604,924 2,128,396 1,838,380 Preopening expenses 12,751 6,728 43,003 25,170 Provision for impaired assets and closing costs -- 1,500 2,000 4,000 Operating income 174,650 197,210 673,845 710,743 OTHER INCOME (EXPENSE) Interest expense (9,023) (9,604) (24,889) (30,577) Interest income and other 9,801 12,943 36,635 38,593 INCOME BEFORE INCOME TAXES 175,428 200,549 685,591 718,759 Provision for income taxes 70,171 80,220 274,236 287,504 NET INCOME $105,257 $120,329 $411,355 $431,255 NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE: Basic $.23 $0.27 $.92 $0.97 Diluted $.23 $0.26 $.88 $0.92 Shares used in calculation (000's) Basic 450,195 448,113 448,886 445,557 Diluted 475,840 478,750 474,973 476,409
--30--BP/se*
CONTACT: | Costco Wholesale Corporation |
---|---|
Richard Galanti, 425/313-8203 | |
Bob Nelson, 425/313-8255 | |