GlobeNewswire Inc | May 27, 2021 04:15PM EDT

May 27, 2021

ISSAQUAH, Wash., May 27, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (Costco or the Company) (Nasdaq: COST) today announced its operating results for the third quarter (twelve weeks) and the first 36 weeks of fiscal 2021, ended May 9, 2021.

Net sales for the quarter increased 21.7 percent, to $44.38 billion, from $36.45 billion last year. Net sales for the first 36 weeks increased 17.7 percent, to $130.61 billion, from $110.94 billion last year.

Comparable sales for the third quarter fiscal 2021 were as follows:

12 Weeks 12 Weeks 36 Weeks 36 Weeks Adjusted* Adjusted* U.S. 18.2% 15.2% 14.7% 15.1% Canada 32.3% 16.7% 20.2% 14.7% Other International 22.9% 13.1% 21.1% 16.3% Total Company 20.6% 15.1% 16.3% 15.2% E-commerce 41.2% 38.2% 65.1% 63.6%

*Excluding the impacts from changes in gasoline prices and foreign exchange.

Net income for the quarter was $1,220 million, or $2.75 per diluted share, which included $57 million pretax, or $0.09 per diluted share, in COVID-19 related costs, primarily from $2 per hour premium pay. Last years third quarter net income was $838 million, or $1.89 per diluted share, inclusive of $283 million pretax, or $0.47 per diluted share of COVID related costs. Net income for the first 36 weeks was $3.34 billion, or $7.51 per diluted share, compared to $2.61 billion, or $5.89 per diluted share, last year.

Costco currently operates 809 warehouses, including 559 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 29 in the United Kingdom, 29 in Japan, 16 in Korea, 14 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France, and China. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, May 27, 2021, 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. In some cases forward-looking statements can be identified because they contain words such as anticipate, believe, continue, could, estimate, expect, intend, likely, may, might, plan, potential, predict, project, seek, should, target, will, would, or similar expressions and the negatives of those terms. 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 (generally including health-care costs), energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, COVID-19 related factors and challenges, including (among others) the duration of the pandemic, the unknown long-term economic impact, reduced shopping due to illness, travel restrictions or financial hardship, shifts in demand away from discretionary or higher-priced products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures due to reduced workforces or government mandates, or supply-chain disruptions, capacity constraints of third-party logistics suppliers, and other risks identified from time to time in the Companys public statements and reports filed with theSecurities 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.

Costco Wholesale Corporation Richard Galanti, 425/313-8203CONTACTS: Bob Nelson, 425/313-8255 David Sherwood, 425/313-8239 Josh Dahmen, 425/313-8254

COSTCO WHOLESALE CORPORATIONCONSOLIDATED STATEMENTS OF INCOME(dollars in millions, except per share data)(unaudited)

12 Weeks Ended 36 Weeks Ended May 9, 2021 May 10, 2020 May 9, 2021 May 10, 2020REVENUE Net sales $ 44,376 $ 36,451 $ 130,611 $ 110,943 Membership fees 901 815 2,643 2,435 Total revenue 45,277 37,266 133,254 113,378 OPERATING EXPENSES Merchandise costs 39,415 32,249 115,951 98,538 Selling, general and 4,189 3,830 12,829 11,305 administrativePreopening expenses 10 8 41 29 Operating income 1,663 1,179 4,433 3,506 OTHER INCOME (EXPENSE) Interest expense (40 ) (37 ) (119 ) (109 )Interest income and 27 21 75 101 other, netINCOME BEFORE INCOME 1,650 1,163 4,389 3,498 TAXESProvision for income 417 311 1,004 843 taxesNet income includingnoncontrolling 1,233 852 3,385 2,655 interestsNet incomeattributable to (13 ) (14 ) (48 ) (42 )noncontrollinginterestsNET INCOMEATTRIBUTABLE TO COSTCO $ 1,220 $ 838 $ 3,337 $ 2,613

NET INCOME PER COMMONSHARE ATTRIBUTABLE TO COSTCO:Basic $ 2.75 $ 1.90 $ 7.53 $ 5.91 Diluted $ 2.75 $ 1.89 $ 7.51 $ 5.89 Shares used in calculation (000s):Basic 443,043 442,322 443,043 442,054 Diluted 444,127 443,855 444,336 443,754

COSTCO WHOLESALE CORPORATIONCONSOLIDATED BALANCE SHEETS(amounts in millions, except par value and share data)(unaudited)

Subject to Reclassification May 9, August 30, 2021 2020ASSETS CURRENT ASSETS Cash and cash equivalents $ 10,226 $ 12,277 Short-term investments 900 1,028 Receivables, net 1,595 1,550 Merchandise inventories 13,975 12,242 Other current assets 1,220 1,023 Total current assets 27,916 28,120 OTHER ASSETS Property and equipment, net 23,177 21,807 Operating lease right-of-use assets 2,875 2,788 Other long-term assets 3,306 2,841 TOTAL ASSETS $ 57,274 $ 55,556 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 15,538 $ 14,172 Accrued salaries and benefits 3,826 3,605 Accrued member rewards 1,617 1,393 Deferred membership fees 2,102 1,851 Current portion of long-term debt 92 95 Other current liabilities 4,807 3,728 Total current liabilities 27,982 24,844 OTHER LIABILITIES Long-term debt, excluding current portion 7,495 7,514 Long-term operating lease liabilities 2,641 2,558 Other long-term liabilities 2,182 1,935 TOTAL LIABILITIES 40,300 36,851 COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $0.01 par value; 100,000,000 shares ? ? authorized; no shares issued and outstandingCommon stock $0.01 par value; 900,000,000 sharesauthorized; 442,141,000 and 441,255,000 shares issued 4 4 and outstandingAdditional paid-in capital 6,921 6,698 Accumulated other comprehensive loss (909 ) (1,297 )Retained earnings 10,466 12,879 Total Costco stockholders? equity 16,482 18,284 Noncontrolling interests 492 421 TOTAL EQUITY 16,974 18,705 TOTAL LIABILITIES AND EQUITY $ 57,274 $ 55,556