Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal Year 2013

ISSAQUAH, WA--(Marketwire - Mar 12, 2013) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the second quarter (twelve weeks) and first half (24 weeks) of fiscal 2013, ended February 17, 2013. Net sales for the quarter increased eight percent, to $24.34 billion, from $22.51 billion last year. Net sales for the first half increased nine percent, to $47.55 billion, from $43.69 billion last year.

Comparable sales were as follows:

		12 Weeks		24 Weeks
U.S.		5%		6%
International		6%		7%
Total		5%		6%

Inflation in gasoline prices and stronger foreign currencies had positive impacts on comparable sales for both reporting periods. Excluding these effects, comparable sales were as follows:

		12 Weeks		24 Weeks
U.S.		5%		6%
International		4%		5%
Total		5%		5%

Net income for the quarter was $547 million, or $1.24 per diluted share, compared to $394 million, or $.90 per diluted share, last year. Net income was positively impacted by a $62 million ($0.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid by the Company in December 2012 to the Company 401(k) plan participants. Net income for the first half was $963 million, or $2.19 per diluted share, compared to $714 million, or $1.62 per diluted share, last year.

Costco currently operates 622 warehouses, including 448 in the United States and Puerto Rico, 85 in Canada, 32 in Mexico, 23 in the United Kingdom, 13 in Japan, nine in Taiwan, nine in Korea and three in Australia. The Company plans to open up to an additional fourteen new warehouses prior to the end of its fiscal year on September 1, 2013. Costco also operates electronic commerce web sites, at www.costco.com (U.S.), www.costco.ca (Canada), and www.costco.co.uk (United Kingdom).

A conference call to discuss these second quarter operating results is scheduled for 8:00 a.m. (PT) today, March 12, 2013, 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, conditions affecting the acquisition, development, ownership or use of real estate, 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								24 Weeks Ended
				February 17, 2013				February 12, 2012				February 17, 2013				February 12, 2012
REVENUE
	Net sales			$	24,343			$	22,508			$	47,547			$	43,689
	Membership fees				528				459				1,039				906
		Total revenue			24,871				22,967				48,586				44,595
OPERATING EXPENSES
	Merchandise costs				21,766				20,139				42,492				39,070
	Selling, general and administrative				2,361				2,178				4,693				4,322
	Preopening expenses				6				6				24				16
		Operating income			738				644				1,377				1,187
OTHER INCOME (EXPENSE)
	Interest expense				(25	)			(27	)			(38	)			(54	)
	Interest income and other, net				26				10				46				47
INCOME BEFORE INCOME TAXES					739				627				1,385				1,180
	Provision for income taxes				185				215				410				440
Net income including noncontrolling interests					554				412				975				740
Net income attributable to noncontrolling interests					(7	)			(18	)			(12	)			(26	)
NET INCOME ATTRIBUTABLE TO COSTCO				$	547			$	394			$	963			$	714
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
	Basic			$	1.26			$	0.91			$	2.22			$	1.64
	Diluted			$	1.24			$	0.90			$	2.19			$	1.62
Shares used in calculation (000's)
	Basic				435,975				434,535				434,698				434,374
	Diluted				439,812				439,468				439,222				440,036
Cash dividends declared per common share				$	7.275			$	0.240			$	7.550			$	0.480

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
			February 17, 2013			September 2, 2012
ASSETS
Cash and cash equivalents			$	4,413		$	3,528
Short-term investments				1,238			1,326
Receivables, net				1,300			1,026
Merchandise inventories				7,582			7,096
Deferred income taxes and other current assets				577			550
	Total current assets			15,110			13,526
Property and equipment, net				13,386			12,961
Other assets				593			653
TOTAL ASSETS			$	29,089		$	27,140
LIABILITIES AND EQUITY
Short-term borrowings			$	64		$	0
Accounts payable				7,441			7,303
Accrued salaries and benefits				2,077			1,832
Other current liabilities				2,264			2,024
Deferred membership fees				1,199			1,101
	Total current liabilities			13,045			12,260
Long-term debt, excluding current portion				4,806			1,381
Deferred income taxes and other liabilities				955			981
	Total liabilities			18,806			14,622
Total Costco stockholders' equity				10,112			12,361
Noncontrolling interests				171			157
	Total equity			10,283			12,518
TOTAL LIABILITIES AND EQUITY			$	29,089		$	27,140