Costco Wholesale Corporation Reports First Quarter Fiscal Year 2015 Operating Results

ISSAQUAH, WA--(Marketwired - Dec 10, 2014) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the first quarter (twelve weeks) of fiscal 2015, ended November 23, 2014.

Net sales for the quarter increased seven percent, to $26.28 billion from $24.47 billion during the first quarter last year. Comparable sales for the first quarter of fiscal 2015 were as follows:

	12 Weeks
U.S.	6%
International	1%
Total Company	5%

Comparable sales for the twelve-week period, excluding negative impacts from gasoline price deflation and foreign exchange, were as follows:

	12 Weeks
U.S.	7%
International	7%
Total Company	7%

Net income for the quarter was $496 million, or $1.12 per diluted share, compared to $425 million, or $0.96 per diluted share, last year.

Costco currently operates 671 warehouses, including 474 in the United States and Puerto Rico, 88 in Canada, 34 in Mexico, 26 in the United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

A conference call to discuss these fiscal 2015 first quarter operating results is scheduled for 8:00 a.m. (PT) today, December 10, 2014, 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, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, amounts expected to be spent on expansion plans, 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
					November 23, 2014				November 24, 2013
REVENUE
	Net sales			$	26,284			$	24,468
	Membership fees				582				549
		Total revenue			26,866				25,017
OPERATING EXPENSES
	Merchandise costs				23,385				21,824
	Selling, general and administrative				2,696				2,501
	Preopening expenses				15				24
		Operating income			770				668
OTHER INCOME (EXPENSE)
	Interest expense				(26	)			(27	)
	Interest income and other, net				35				18
INCOME BEFORE INCOME TAXES					779				659
	Provision for income taxes				274				228
Net income including noncontrolling interests					505				431
Net income attributable to noncontrolling interests					(9	)			(6	)
NET INCOME ATTRIBUTABLE TO COSTCO				$	496			$	425
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
	Basic			$	1.13			$	0.97
	Diluted			$	1.12			$	0.96
Shares used in calculation (000's)
	Basic				438,760				437,970
	Diluted				442,210				442,420
CASH DIVIDENDS DECLARED PER COMMON SHARE				$	0.355			$	0.31

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
				November 23, 2014			August 31,  2014
ASSETS
Cash and cash equivalents			$	5,969		$	5,738
Short-term investments				1,650			1,577
Receivables, net				1,248			1,148
Merchandise inventories				9,644			8,456
Deferred income taxes and other current assets				645			669
	Total current assets			19,156			17,588
Property and equipment, net				14,798			14,830
Other assets				659			606
TOTAL ASSETS			$	34,613		$	33,024
LIABILITIES AND EQUITY
Accounts payable			$	9,783		$	8,491
Accrued salaries and benefits				2,224			2,231
Deferred membership fees				1,305			1,254
Other current liabilities				2,707			2,436
	Total current liabilities			16,019			14,412
Long-term debt, excluding current portion				5,034			5,093
Deferred income taxes and other liabilities				990			1,004
	Total liabilities			22,043			20,509
Total Costco stockholders' equity				12,359			12,303
Noncontrolling interests				211			212
	Total equity			12,570			12,515
TOTAL LIABILITIES AND EQUITY			$	34,613		$	33,024