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

ISSAQUAH, WA--(Marketwire - Oct 10, 2012) - 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