Costco Wholesale Corporation Reports Third Quarter and Year-to-Date Operating Results for Fiscal Year 2013

ISSAQUAH, WA--(Marketwired - May 30, 2013) -  Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the third quarter (twelve weeks) and the first thirty-six-weeks of fiscal 2013, ended May 12, 2013. Net sales for the quarter increased eight percent, to $23.55 billion, from $21.85 billion last year. Net sales for the first thirty-six weeks increased eight percent, to $71.10 billion, from $65.54 billion last year.

Comparable sales were as follows:

	12 Weeks		36 Weeks
U.S.	6%		6%
International	4%		6%
Total	5%		6%

Changes in gasoline prices and foreign exchange rates had negative impacts on comparable sales for the 12-week period; and immaterial impacts for the 36-week period. Excluding these effects, comparable sales were as follows:

	12 Weeks		36 Weeks
U.S.	7%		6%
International	7%		6%
Total	7%		6%

Net income for the quarter was $459 million, or $1.04 per diluted share, compared to $386 million, or $.88 per diluted share, last year. Net income for the first thirty-six weeks was $1.42 billion, or $3.23 per diluted share, compared to $1.10 billion, or $2.50 per diluted share, last year. Net income for the thirty-six weeks was positively impacted by a second quarter $62 million ($.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid in December 2012 to the Company 401(k) plan participants.

Costco currently operates 627 warehouses, including 449 in the United States and Puerto Rico, 85 in Canada, 33 in Mexico, 24 in the United Kingdom, 15 in Japan, nine in Taiwan, nine in Korea and three in Australia. The Company plans to open up to an additional nine new warehouses prior to the end of its fiscal year on September 1, 2013. Costco also operates electronic commerce web sites, at www.costco.com (U.S.), www.costco.ca (Canada), and www.costco.co.uk (United Kingdom).

A conference call to discuss these third quarter operating results is scheduled for 8:00 a.m. (PT) today, May 30, 2013, 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
				12 Weeks Ended								36 Weeks Ended
				May 12, 2013				May 6, 2012				May 12, 2013				May 6, 2012
REVENUE
	Net sales			$	23,552			$	21,849			$	71,099			$	65,538
	Membership fees				531				475				1,570				1,381
		Total revenue			24,083				22,324				72,669				66,919
OPERATING EXPENSES
	Merchandise costs				21,038				19,543				63,530				58,613
	Selling, general and administrative				2,313				2,152				7,006				6,474
	Preopening expenses				10				6				34				22
		Operating income			722				623				2,099				1,810
OTHER INCOME (EXPENSE)
	Interest expense				(25	)			(19	)			(63	)			(73	)
	Interest income and other, net				15				18				61				65
INCOME BEFORE INCOME TAXES					712				622				2,097				1,802
	Provision for income taxes				248				217				658				657
Net income including noncontrolling interests					464				405				1,439				1,145
Net income attributable to noncontrolling interests					(5	)			(19	)			(17	)			(45	)
NET INCOME ATTRIBUTABLE TO COSTCO				$	459			$	386			$	1,422			$	1,100
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
	Basic			$	1.05			$	0.89			$	3.27			$	2.53
	Diluted			$	1.04			$	0.88			$	3.23			$	2.50
Shares used in calculation (000's)
	Basic				436,488				433,791				435,293				434,180
	Diluted				440,780				439,166				439,738				439,748
Cash dividends declared per common share				$	0.31			$	0.00			$	7.86			$	0.48

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
			May 12, 2013			September 2,  2012
ASSETS
Cash and cash equivalents			$	5,448		$	3,528
Short-term investments				1,062			1,326
Receivables, net				1,134			1,026
Merchandise inventories				7,635			7,096
Deferred income taxes and other current assets				584			550
	Total current assets			15,863			13,526
Property and equipment, net				13,546			12,961
Other assets				597			653
TOTAL ASSETS			$	30,006		$	27,140
LIABILITIES AND EQUITY
Short-term borrowings			$	54		$	0
Accounts payable				7,788			7,303
Accrued salaries and benefits				1,911			1,832
Other current liabilities				2,544			2,024
Deferred membership fees				1,212			1,101
	Total current liabilities			13,509			12,260
Long-term debt, excluding current portion				4,887			1,381
Deferred income taxes and other liabilities				963			981
	Total liabilities			19,359			14,622
Total Costco stockholders' equity				10,472			12,361
Noncontrolling interests				175			157
	Total equity			10,647			12,518
TOTAL LIABILITIES AND EQUITY			$	30,006		$	27,140