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Costco Wholesale Corporation Reports Second Quarter and Year-To-Date Operating Results for Fiscal 2018 and February Sales Results

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ISSAQUAH, Wash., March 07, 2018 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ:COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2018, ended February 18, 2018.

Net sales for the quarter increased 10.8 percent, to $32.28 billion from $29.13 billion last year. Net sales for the first 24 weeks of fiscal 2018 increased 12.0 percent, to $63.40 billion from $56.60 billion last year.

The Company gained an incremental sales day in the quarter due to the shift of Thanksgiving, however pre-Thanksgiving and Black Friday holiday weekend sales fell in the first quarter this year, versus the second quarter last year. This negatively impacted this year's second quarter sales by approximately 1.4% in the U.S., and slightly less worldwide and negatively impacted E-commerce sales by approximately 7-8%.

Comparable sales for the second quarter and the twenty-four-week year-to-date periods ended February 18, 2018, were as follows:

                     
        12 Weeks      12 Weeks      24 Weeks     24 Weeks  
      Fiscal Quarter   Fiscal Quarter     Fiscal Year     Fiscal Year  
          w/o gas inflation & FX        w/o gas inflation & FX   
  U.S.   7.1%   5.7%   8.7%   7.1%  
  Canada   8.7%   2.5%   10.0%   3.4%  
  Other International   15.7%   7.4%   13.0%   7.8%  
                     
  Total Company   8.4%   5.4%   9.4%   6.6%  
                     
  E-commerce   28.5%   27.3%   35.0%   33.7%  
                     

Reported net income for the quarter was $701 million, or $1.59 per diluted share, compared to $515 million, or $1.17 per diluted share, last year. Earnings per share increased $0.17 due to a net income tax benefit of $74 million, as a result of the new tax laws. Excluding this benefit, net income grew 22%. Net income for the first 24 weeks of fiscal year 2018 was $1.34 billion, or $3.04 per diluted share, compared to $1.06 billion, or $2.41 per diluted share, last year.

For the four-week reporting month of February, ended March 4, 2018, the Company reported net sales of $10.21 billion, an increase of 12.8 percent from $9.05 billion during the similar period last year. For the twenty-six week period ended March 4, 2018, net sales were $68.51 billion, an increase of 12.0 percent from $61.18 billion during the similar period last year.  Lunar New Year/Chinese New Year occurred in February this year (as compared to January last year). This positively impacted February sales by approximately 4.5% for Other International and a little more than 0.5% for Total Company.

Comparable sales for the February four-week and twenty-six-week year-to-date periods ended March 4, 2018, were as follows:

                     
        4 Weeks      4 Weeks      26 Weeks     26 Weeks  
      Retail Month    Retail Month     Fiscal Year     Fiscal Year  
          w/o gas inflation & FX        w/o gas inflation & FX   
  U.S.   9.0%   7.5%   8.6%   7.1%  
  Canada   8.4%   3.2%   9.8%   3.3%  
  Other International   22.2%   14.1%   13.1%   7.7%  
                     
  Total Company   10.5%   7.7%   9.4%   6.6%  
                     
  E-commerce   38.1%   37.0%   35.3%   33.9%  
                     

Costco currently operates 749 warehouses, including 519 in the United States and Puerto Rico, 98 in Canada, 38 in Mexico, 28 in the United Kingdom, 26 in Japan, 14 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in Iceland and one in France. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea and Taiwan.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, March 7, 2018, 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 the Company does not undertake to update these statements, except as required by law.

CONTACTS: Costco Wholesale Corporation
Richard Galanti, 425/313-8203
Bob Nelson, 425/313-8255
David Sherwood, 425/313-8239

 
COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (dollars in millions, except per share data)
(unaudited)
 
      12 Weeks Ended     24 Weeks Ended
      February 18,
2018
    February 12,
2017
    February 18,
2018
    February 12,
2017
REVENUE                        
Net sales   $ 32,279     $ 29,130     $ 63,396     $ 56,599  
Membership fees     716       636       1,408      
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