12 Weeks 24 Weeks --------- --------- US 5% 4% International 4% 8% Total Company 5% 5% ========= =========The Company today also reported net sales of $4.60 billion for the four weeks ended March 4, 2007, an increase of 9% from $4.22 billion in the same four-week period of the prior fiscal year. For the six-month retail reporting period of September through February, the twenty-seven weeks ended March 4, 2007, which includes the first two weeks of the Company's fiscal third quarter, the Company reported net sales of $32.40 billion, an increase of 9% from $29.65 billion during the comparable period of the prior fiscal year. These sales results exclude the adjustment to our sales returns reserve described above. Comparable sales for the 4-week retail-reporting month of February and the 27-week retail-reporting period of September through February are as follows:
4 Weeks 27 Weeks --------- --------- US 4% 4% International 5% 8% Total Company 4% 5% ========= =========Costco currently operates 506 warehouses, including 373 in the United States and Puerto Rico, 70 in Canada, 19 in the United Kingdom, five in Korea, four in Taiwan, five in Japan and 30 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada. The Company plans to open an additional thirteen to fourteen new warehouses, including the relocation of one warehouse to a larger and better-located facility, prior to the end of its 52-week 2007 fiscal year on September 2, 2007. A conference call to discuss these second quarter results is scheduled for 8:00 a.m. (PT) today, March 8, 2007, and is available via a webcast on www.costco.com (click on Investor Relations and "Webcasts"). 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 those 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, 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 and workers' compensation costs), rising costs associated with the acquisition of merchandise (including the direct and indirect effects of the rising cost of petroleum-based products and fuel and energy costs), 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 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) (unaudited) 12 Weeks Ended 24 Weeks Ended ----------------------- ----------------------- February February February February 18, 2007 12, 2006 18, 2007 12, 2006 ----------- ----------- ----------- ----------- REVENUE Net sales $14,804,696 $13,789,246 $28,657,017 $26,460,038 Membership fees 307,320 269,766 606,623 532,320 ----------- ----------- ----------- ----------- Total revenue 15,112,016 14,059,012 29,263,640 26,992,358 OPERATING EXPENSES Merchandise costs 13,251,752 12,303,850 25,640,710 23,634,021 Selling, general and administrative 1,487,991 1,317,804 2,870,458 2,581,896 Preopening expenses 7,486 4,614 30,213 16,991 Provision for impaired assets and closing costs, net 3,459 1,428 7,791 2,639 ----------- ----------- ----------- ----------- Operating income 361,328 431,316 714,468 756,811 OTHER INCOME (EXPENSE) Interest expense (3,620) (2,923) (5,760) (6,647) Interest income and other 36,526 35,225 63,637 60,765 ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAXES 394,234 463,618 772,345 810,929 Provision for income taxes 144,756 167,415 285,981 298,908 ----------- ----------- ----------- ----------- NET INCOME $ 249,478 $ 296,203 $ 486,364 $ 512,021 =========== =========== =========== =========== NET INCOME PER COMMON SHARE: Basic $ 0.55 $ 0.63 $ 1.07 $ 1.08 =========== =========== =========== =========== Diluted $ 0.54 $ 0.62 $ 1.05 $ 1.06 =========== =========== =========== =========== Shares used in calculation (000's) Basic 450,901 471,889 454,884 472,282 Diluted 461,575 482,127 465,149 484,294 Dividends per share $ 0.13 $ 0.115 $ 0.26 $ 0.23
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264