16 Weeks 52 Weeks
---------- ----------
US 4% 5%
International 9% 9%
Total Company 5% 6%
========== ==========
For the first five weeks of its reporting period ended October 7, 2007, the
five-week retail reporting month of September, the Company reported net
sales of $6.05 billion, an increase of 9 percent from $5.53 billion during
the similar five-week period of the prior year. Comparable sales were as
follows:
5 Weeks
----------
US 4%
International 13%
Total Company 6%
==========
Costco currently operates 520 warehouses, including 385 in the United
States and Puerto Rico, 71 in Canada, 19 in the United Kingdom, five in
Korea, four in Taiwan, six 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 ten
to eleven new warehouses (including the relocation of two warehouses to
larger and better-located facilities) prior to the end of calendar year
2007.
A conference call to discuss these fiscal 2007 fourth quarter and year-end
results is scheduled for 8:00 a.m. (PDT) today, October 10, 2007, 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 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
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
16 Weeks 17 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended
September 2, September 3, September 2, September 3,
2007 2006 2007 2006
------------ ------------ ------------ ------------
REVENUE
Net sales $ 20,089,064 $ 19,495,727 $ 63,087,601 $ 58,963,180
Membership fees 388,196 379,494 1,312,554 1,188,047
------------ ------------ ------------ ------------
Total revenue 20,477,260 19,875,221 64,400,155 60,151,227
OPERATING EXPENSES
Merchandise
costs 17,931,405 17,476,424 56,449,702 52,745,497
Selling, general
and
administrative 1,969,988 1,867,969 6,273,096 5,732,141
Preopening
expenses 15,928 15,082 55,163 42,504
Provision for
impaired assets
and closing
costs, net 4,886 1,632 13,608 5,453
------------ ------------ ------------ ------------
Operating
income 555,053 514,114 1,608,586 1,625,632
OTHER INCOME
(EXPENSE)
Interest expense (32,303) (3,244) (64,079) (12,570)
Interest income
and other 59,009 43,839 165,484 138,355
------------ ------------ ------------ ------------
INCOME BEFORE
INCOME TAXES 581,759 554,709 1,709,991 1,751,417
Provision for
income taxes 209,337 199,110 627,219 648,202
------------ ------------ ------------ ------------
NET INCOME $ 372,422 $ 355,599 $ 1,082,772 $ 1,103,215
============ ============ ============ ============
NET INCOME PER
COMMON SHARE:
Basic $ 0.85 $ 0.76 $ 2.42 $ 2.35
============ ============ ============ ============
Diluted $ 0.83 $ 0.75 $ 2.37 $ 2.30
============ ============ ============ ============
Shares used in
calculation
(000's)
Basic 438,449 465,542 447,659 469,718
Diluted 448,733 474,449 457,641 480,341
Dividends per share $ 0.145 $ 0.130 $ 0.55 $ 0.49
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti, 425/313-8203 Bob Nelson, 425/313-8255 Jeff Elliott, 425/313-8264