GlobeNewswire Inc | Dec 9, 2021 04:15PM EST

December 09, 2021

ISSAQUAH, Wash., Dec. 09, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (Costco or the Company) (Nasdaq: COST) today announced its operating results for the first quarter (twelve weeks) of fiscal 2022, ended November 21, 2021.

Net sales for the first quarter increased 16.7 percent, to $49.42 billion from $42.35 billion last year.

Comparable sales for the first quarter fiscal 2022 were as follows:

12 Weeks 12 Weeks Adjusted* U.S. 14.9% 9.9% Canada 17.2% 8.3% Other International 13.4% 10.9% Total Company 15.0% 9.8% E-commerce 14.3% 13.3%

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

Net income for the quarter was $1,324 million, $2.98 per diluted share, compared to $1,166 million, $2.62 per diluted share, last year. This year included a tax benefit of $91 million, $0.21 per diluted share, related to stock-based compensation, and a write-off of certain information technology assets of $118 million pre-tax, $0.20 per diluted share. Last year included tax benefits of $145 million, $0.33 per diluted share, and incremental expenses for COVID-19 premium wages of $212 million pre-tax, $0.35 per diluted share.

Costco currently operates 828 warehouses, including 572 in the United States and Puerto Rico, 105 in Canada, 40 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. 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, December 9, 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, inflation or deflation, 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, regulatory and other impacts related to climate change, and 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 for products, reduced workforces due to illness, quarantine, or government mandates, temporary store closures or operational limitations due to 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.

CONTACTS: Costco Wholesale Corporation Richard Galanti, 425/313-8203 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 November 21, November 22, 2021 2020REVENUE Net sales $ 49,417 $ 42,347 Membership fees 946 861 Total revenue 50,363 43,208 OPERATING EXPENSES Merchandise costs 43,952 37,458 Selling, general and administrative 4,690 4,298 Preopening expenses 28 22 Operating income 1,693 1,430 OTHER INCOME (EXPENSE) Interest expense (39 ) (39 )Interest income and other, net 42 29 INCOME BEFORE INCOME TAXES 1,696 1,420 Provision for income taxes 351 239 Net income including noncontrolling 1,345 1,181 interestsNet income attributable to noncontrolling (21 ) (15 )interestsNET INCOME ATTRIBUTABLE TO COSTCO $ 1,324 $ 1,166

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:Basic $ 2.99 $ 2.63 Diluted $ 2.98 $ 2.62 Shares used in calculation (000s): Basic 443,377 442,952 Diluted 444,604 444,386

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

Subject to Reclassification November 21, August 29, 2021 2021ASSETS CURRENT ASSETS Cash and cash equivalents $ 12,751 $ 11,258 Short-term investments 725 917 Receivables, net 1,932 1,803 Merchandise inventories 16,942 14,215 Other current assets 1,500 1,312 Total current assets 33,850 29,505 OTHER ASSETS Property and equipment, net 23,887 23,492 Operating lease right-of-use assets 2,903 2,890 Other long-term assets 3,509 3,381 TOTAL ASSETS $ 64,149 $ 59,268 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 19,561 $ 16,278 Accrued salaries and benefits 3,985 4,090 Accrued member rewards 1,726 1,671 Deferred membership fees 2,192 2,042 Current portion of long-term debt 799 799 Other current liabilities 5,079 4,561 Total current liabilities 33,342 29,441 OTHER LIABILITIES Long-term debt, excluding current portion 6,667 6,692 Long-term operating lease liabilities 2,649 2,642 Other long-term liabilities 2,491 2,415 TOTAL LIABILITIES 45,149 41,190 COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $0.01 par value; 100,000,000 sharesauthorized; no shares ? ? issued and outstandingCommon stock $0.01 par value; 900,000,000 sharesauthorized; 443,434,000 4 4 and 441,825,000 shares issued and outstandingAdditional paid-in capital 7,064 7,031 Accumulated other comprehensive loss (1,211 ) (1,137 )Retained earnings 12,606 11,666 Total Costco stockholders? equity 18,463 17,564 Noncontrolling interests 537 514 TOTAL EQUITY 19,000 18,078 TOTAL LIABILITIES AND EQUITY $ 64,149 $ 59,268