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Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2012 Operating Results

Oct 10, 2012 (Marketwire via COMTEX) --Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the 17-week fourth quarter and the 53-week fiscal year 2012 ended September 2, 2012.

Net sales for the 17-week fourth quarter were $31.52 billion, an increase of 14 percent from $27.59 billion in the 16-week fourth quarter of fiscal 2011 ended August 28, 2011. Net sales for the 53-week fiscal year 2012 were $97.06 billion, an increase of 12 percent from $87.05 billion in the prior 52-week fiscal year.

Comparable sales for the 17-week fourth quarter and the 53-week fiscal year 2012, using comparable sales periods as well as comparable warehouses (those open for a year or more), were as follows:

         
    17 Weeks   53 Weeks
U.S.   6%   7%
International   2%   6%
         
Total Company   5%   7%
         
         

Inflation in gasoline prices had a slightly negative impact on comparable sales for the 17-week period and a positive impact for the 53-week period. Foreign currencies had a negative impact for both periods. Excluding these effects, comparable sales were as follows:

         
    17 Weeks   53 Weeks
U.S   6%   6%
International   7%   8%
         
Total Company   6%   6%
         
         

Net income for the 17-week fourth quarter of fiscal 2012 was $609 million, or $1.39 per diluted share, compared to $478 million, or $1.08 per diluted share, during the 16-week fourth quarter of fiscal 2011. The fourth quarter this year included an $11.5 million pretax LIFO charge ($.02 per diluted share) compared to a $32 million pretax LIFO charge ($.04 per diluted share) in the fourth quarter of fiscal 2011. Net income for the 53-week fiscal 2012 was $1.71 billion, or $3.89 per diluted share, compared to $1.46 billion, or $3.30 per diluted share, during the 52-week fiscal year 2011. For all of fiscal 2012, the LIFO charge was $20.5 million pretax ($.03 per diluted share), compared to an $87 million pretax ($.12 per diluted share) LIFO charge last year.

Costco ended its 2012 fiscal year on September 2 with 608 warehouses in operation, including 439 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, 13 in Japan, nine in Taiwan, eight in Korea, and three in Australia. The Company plans to open up to 14 new warehouses before the end of calendar year 2012. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada.

A conference call to discuss these fiscal 2012 fourth quarter and year-end operating results is scheduled for 7:00 a.m. (PT) today, October 10, 2012, and is available via a webcast on www.costco.com (click on Investor Relations and "Play Webcast").

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, conditions affecting the acquisition, development, ownership or use of real estate, 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 Securities and Exchange Commission.

   
COSTCO WHOLESALE CORPORATION  
CONSOLIDATED STATEMENTS OF INCOME  
(dollars in millions, except per share data)  
(unaudited)  
             
      17 Weeks Ended       16 Weeks Ended       53 Weeks Ended       52 Weeks Ended  
      September 2, 2012       August 28, 2011       September 2, 2012       August 28, 2011  
REVENUE                                
  Net sales   $ 31,524     $ 27,588     $ 97,062     $ 87,048  
  Membership fees     694       590       2,075       1,867  
    Total revenue     32,218       28,178       99,137       88,915  
                                     
OPERATING EXPENSES                                
  Merchandise costs     28,210       24,680       86,823       77,739  
  Selling, general and administrative     3,044       2,714       9,518       8,691  
  Preopening expenses     15       22       37       46  
    Operating income     949       762       2,759       2,439  
OTHER INCOME (EXPENSE)                                
  Interest expense     (22 )     (36 )     (95 )     (116 )
  Interest income and other, net     38       46       103       60  
INCOME BEFORE INCOME TAXES     965       772       2,767       2,383  
  Provision for income taxes     343       272       1,000       841  
Net income including noncontrolling interests     622       500       1,767       1,542  
Net income attributable to noncontrolling interests     (13 )     (22 )     (58 )     (80 )
NET INCOME ATTRIBUTABLE TO COSTCO   $ 609     $ 478     $ 1,709     $ 1,462  
                                 
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:                                
  Basic   $ 1.41     $ 1.09     $ 3.94     $ 3.35  
  Diluted   $ 1.39     $ 1.08     $ 3.89     $ 3.30  
                                 
Shares used in calculation (000's)                                
  Basic     432,437       436,596       433,620       436,119  
  Diluted     438,344       443,518       439,373       443,094  
                                 
Dividends per share   $ 0.55     $ 0.24     $ 1.03     $ 0.89  
                                 
                                 
 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
 
Subject to Reclassifications            
      September 2,
2012
    August 28,
2011
             
ASSETS            
Cash and cash equivalents   $ 3,528   $ 4,009
Short-term investments     1,326     1,604
Receivables, net     1,026     965
Merchandise inventories     7,096     6,638
Deferred income taxes and other current assets     550     490
  Total current assets     13,526     13,706
Property and equipment, net     12,961     12,432
Other assets     653     623
TOTAL ASSETS   $ 27,140   $ 26,761
             
LIABILITIES AND EQUITY            
             
Accounts payable   $ 7,303   $ 6,544
Current portion of long-term debt     1     900
Other current liabilities     4,956     4,606
  Total current liabilities     12,260     12,050
Long-term debt, excluding current portion     1,381     1,253
Deferred income taxes and other liabilities     981     885
  Total liabilities     14,622     14,188
             
Total Costco stockholders' equity     12,361     12,002
Noncontrolling interests     157     571
  Total equity     12,518     12,573
TOTAL LIABILITIES AND EQUITY   $ 27,140   $ 26,761
             
             
CONTACTS: 
        Costco Wholesale Corporation
        Richard Galanti
        425/313-8203
        
        Bob Nelson
        425/313-8255
        
        Jeff Elliott
        425/313-8264
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