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