News Release

Costco Wholesale Corporation Reports First Quarter Operating Results for Fiscal 2003
ISSAQUAH, Wash.--(BUSINESS WIRE)--Dec. 12, 2002--Costco Wholesale Corporation (Nasdaq: COST) announced today its operating results for the first quarter (12 weeks) of fiscal 2003, ended November 24, 2002.
Net sales for the first quarter of fiscal 2003 increased 9% to $9.01 billion from $8.30 billion during the first quarter of fiscal 2002. On a comparable warehouse basis, that is warehouses open at least a year, net sales increased 4%.
Net income for the first quarter of fiscal 2003 increased 12% to $145.7 million, or $.31 per share (diluted), from $129.7 million, or $.28 per share (diluted), during the first quarter of fiscal 2002.
Costco currently operates 411 warehouses, including 304 in the United States and Puerto Rico, 61 in Canada, 15 in the United Kingdom, five in Korea, three in Taiwan, three 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 one additional new warehouse -- in Celaya, Mexico -- prior to the end of calendar year 2002.
A conference call to discuss these first quarter results is scheduled for 8:00 a.m. (PST) today, December 12, 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 -------------------------- November 24, November 25, 2002 2001 ----------- ----------- REVENUE Net sales $ 9,010,571 $ 8,297,076 Membership fees and other 188,014 169,477 ----------- ----------- Total revenue 9,198,585 8,466,553 OPERATING EXPENSES Merchandise costs 8,048,897 7,434,397 Selling, general and administrative 888,779 786,118 Preopening expenses 18,117 22,134 Provision for impaired assets and closing costs 5,000 8,550 ----------- ----------- Operating income 237,792 215,354 OTHER INCOME (EXPENSE) Interest expense (8,468) (6,238) Interest income and other 7,634 6,977 ----------- ----------- INCOME BEFORE INCOME TAXES 236,958 216,093 Provision for income taxes 91,229 86,437 ----------- ----------- NET INCOME $ 145,729 $ 129,656 =========== =========== NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE: Basic $ 0.32 $ 0.29 =========== =========== Diluted $ 0.31 $ 0.28 =========== =========== Shares used in calculation (000's) Basic 455,570 451,990 Diluted 478,857 477,395
CONTACT: Costco Wholesale Corporation Richard Galanti, 425/313-8203 Bob Nelson, 425/313-8255