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

Wed Oct 10, 2012 3:01am EDT

* Reuters is not responsible for the content in this press release.

  ISSAQUAH, WA, Oct 10 (Marketwire) -- 
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       16 Weeks      53 Weeks       52 Weeks
                        Ended         Ended          Ended         Ended
                    September 2,    August 28,   September 2,    August 28, 
                        2012           2011          2012           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,   August 28, 
                                                      2012          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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