Costco Wholesale Corporation Reports First Quarter Fiscal Year 2016 Operating Results

ISSAQUAH, WA--(Marketwired - Dec 8, 2015) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2016, ended November 22, 2015.

Net sales for the first quarter increased one percent, to $26.63 billion from $26.28 billion during the first quarter last year.

Comparable sales for the first quarter of fiscal 2016 were as follows:

		12 Weeks
U.S.		2%
Canada		-9%
Other International		-5%
Total Company		-1%

Comparable sales for this period excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:

		12 Weeks
U.S.		6%
Canada		9%
Other International		7%
Total Company		6%

Net income for the quarter was $480 million, or $1.09 per diluted share, compared to $496 million, or $1.12 per diluted share, last year. 

Costco currently operates 697 warehouses, including 487 in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the United Kingdom, 24 in Japan, 12 in Korea, 11 in Taiwan, eight in Australia and two in Spain. The Company plans to open one additional warehouse before the end of calendar year 2015. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom, Mexico and Korea.

A conference call to discuss these fiscal 2016 first quarter operating results is scheduled for 8:00 a.m. (PT) tomorrow, December 9, 2015, 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, capital spending, 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. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements, except as required by law.

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
				November 22, 2015				November 23, 2014
REVENUE
	Net sales			$	26,627			$	26,284
	Membership fees				593				582
		Total revenue			27,220				26,866
OPERATING EXPENSES
	Merchandise costs				23,621				23,385
	Selling, general and administrative				2,806				2,696
	Preopening expenses				26				15
		Operating income			767				770
OTHER INCOME (EXPENSE)
	Interest expense				(33	)			(26	)
	Interest income and other, net				28				35
INCOME BEFORE INCOME TAXES					762				779
Provision for income taxes					275				274
Net income including noncontrolling interests					487				505
Net income attributable to noncontrolling interests					(7	)			(9	)
NET INCOME ATTRIBUTABLE TO COSTCO				$	480			$	496
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic				$	1.10			$	1.13
Diluted				$	1.09			$	1.12
	Shares used in calculation: (000's)
		Basic			438,342				438,760
		Diluted			441,386				442,210
Cash dividends declared per common share				$	0.40			$	0.355

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in millions, except par value and share data)
(unaudited)
Subject to Reclassifications
				November 22, 2015				August 30,  2015
ASSETS
CURRENT ASSETS
	Cash and cash equivalents			$	5,054			$	4,801
	Short-term investments				1,229				1,618
	Receivables, net				1,359				1,224
	Merchandise inventories				10,382				8,908
	Deferred income taxes and other current assets				834				748
	Total current assets				18,858				17,299
PROPERTY AND EQUIPMENT
	Land				5,079				4,961
	Buildings and improvements				13,150				12,618
	Equipment and fixtures				5,480				5,274
	Construction in progress				647				811
					24,356				23,664
	Less accumulated depreciation and amortization				(8,489	)			(8,263	)
	Net property and equipment				15,867				15,401
OTHER ASSETS					726				728
		TOTAL ASSETS		$	35,451			$	33,428
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Accounts payable			$	10,378			$	9,011
	Current portion long-term debt				1,281				1,283
	Accrued salaries and benefits				2,436				2,468
	Accrued member rewards				812				813
	Deferred membership fees				1,350				1,269
	Other current liabilities				2,036				1,696
		Total current liabilities			18,293				16,540
LONG-TERM DEBT, excluding current portion					4,845				4,852
DEFERRED INCOME TAXES AND OTHER LIABILITIES					1,233				1,193
		Total liabilities			24,371				22,585
COMMITMENTS AND CONTINGENCIES
EQUITY
	Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding				0				0
	Common stock $.005 par value; 900,000,000 shares authorized; 439,777,000 and 437,952,000 shares issued and outstanding				2				2
	Additional paid-in capital				5,247				5,218
	Accumulated other comprehensive loss				(1,105	)			(1,121	)
	Retained earnings				6,704				6,518
		Total Costco stockholders' equity			10,848				10,617
	Noncontrolling interests				232				226
		Total equity			11,080				10,843
		TOTAL LIABILITIES AND EQUITY		$	35,451			$	33,428