News Release

Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal 2014
Comparable sales were as follows:
12 Weeks | 36 Weeks | |||
U.S. | 5% | 4% | ||
International | 3% | 1% | ||
Total | 4% | 3% | ||
Comparable sales for these periods, excluding negative impacts from gasoline price deflation and foreign exchange, were as follows:
12 Weeks | 36 Weeks | |||
U.S. | 6% | 5% | ||
International | 8% | 7% | ||
Total | 6% | 5% | ||
Net income for the quarter was
Costco currently operates 655 warehouses, including 464 in
A conference call to discuss these third quarter operating results is scheduled for
Certain statements contained in this document 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, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, amounts expected to be spent on expansion plans, actions of vendors, rising costs associated with employees (including health care costs), energy, and certain commodities, geopolitical conditions and other risks identified from time to time in the Company's public statements and reports filed with the
COSTCO WHOLESALE CORPORATION | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
(dollars in millions, except per share data) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
12 Weeks Ended | 36 Weeks Ended | |||||||||||||||||
May 11, 2014 |
May 12, 2013 |
May 11, 2014 |
May 12, 2013 |
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REVENUE | ||||||||||||||||||
Net sales | $ | 25,233 | $ | 23,552 | $ | 75,457 | $ | 71,099 | ||||||||||
Membership fees | 561 | 531 | 1,660 | 1,570 | ||||||||||||||
Total revenue | 25,794 | 24,083 | 77,117 | 72,669 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||
Merchandise costs | 22,554 | 21,038 | 67,421 | 63,530 | ||||||||||||||
Selling, general and administrative | 2,487 | 2,313 | 7,519 | 7,006 | ||||||||||||||
Preopening expenses | 16 | 10 | 48 | 34 | ||||||||||||||
Operating income | 737 | 722 | 2,129 | 2,099 | ||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||
Interest expense | (25 | ) | (25 | ) | (78 | ) | (63 | ) | ||||||||||
Interest income and other, net | 12 | 15 | 60 | 61 | ||||||||||||||
INCOME BEFORE INCOME TAXES | 724 | 712 | 2,111 | 2,097 | ||||||||||||||
Provision for income taxes | 245 | 248 | 728 | 658 | ||||||||||||||
Net income including noncontrolling interests | 479 | 464 | 1,383 | 1,439 | ||||||||||||||
Net income attributable to noncontrolling interests | (6 | ) | (5 | ) | (22 | ) | (17 | ) | ||||||||||
NET INCOME ATTRIBUTABLE TO COSTCO | $ | 473 | $ | 459 | $ | 1,361 | $ | 1,422 | ||||||||||
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: | ||||||||||||||||||
Basic | $ | 1.08 | $ | 1.05 | $ | 3.10 | $ | 3.27 | ||||||||||
Diluted | $ | 1.07 | $ | 1.04 | $ | 3.07 | $ | 3.23 | ||||||||||
Shares used in calculation (000's) | ||||||||||||||||||
Basic | 439,446 | 436,488 | 439,058 | 435,293 | ||||||||||||||
Diluted | 442,720 | 440,780 | 442,651 | 439,738 | ||||||||||||||
Cash dividends declared per common share | $ | 0.355 | $ | 0.31 | $ | 0.975 | $ | 7.86 | ||||||||||
COSTCO WHOLESALE CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(dollars in millions) | |||||||
(unaudited) | |||||||
Subject to Reclassifications | |||||||
May 11, 2014 |
September 1, 2013 |
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ASSETS | |||||||
Cash and cash equivalents | $ | 5,736 | $ | 4,644 | |||
Short-term investments | 1,539 | 1,480 | |||||
Receivables, net | 1,115 | 1,201 | |||||
Merchandise inventories | 8,483 | 7,894 | |||||
Deferred income taxes and other current assets | 660 | 621 | |||||
Total current assets | 17,533 | 15,840 | |||||
Property and equipment, net | 14,583 | 13,881 | |||||
Other assets | 585 | 562 | |||||
TOTAL ASSETS | $ | 32,701 | $ | 30,283 | |||
LIABILITIES AND EQUITY | |||||||
Accounts payable | $ | 8,361 | $ | 7,872 | |||
Accrued salaries and benefits | 2,056 | 2,037 | |||||
Other current liabilities | 2,973 | 2,181 | |||||
Deferred membership fees | 1,297 | 1,167 | |||||
Total current liabilities | 14,687 | 13,257 | |||||
Long-term debt, excluding current portion | 4,985 | 4,998 | |||||
Deferred income taxes and other liabilities | 1,008 | 1,016 | |||||
Total liabilities | 20,680 | 19,271 | |||||
Total Costco stockholders' equity | 11,819 | 10,833 | |||||
Noncontrolling interests | 202 | 179 | |||||
Total equity | 12,021 | 11,012 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 32,701 | $ | 30,283 | |||
CONTACTS:
425/313-8203
425/313-8255
425/313-8264
Source: Costco