12 Weeks
----------
US 5%
International 17%
Total Company 8%
==========
The U.S. comparable sales figure includes, among other things, the effect
of recent gasoline price inflation, with the average sales price per gallon
of gasoline up 21% year-over-year for the first quarter of fiscal 2008.
Excluding gasoline price inflation, U.S. comparable sales in the first
quarter would have been 4%. In addition, significantly stronger foreign
exchange rates, particularly in Canada and the U.K., positively impacted
the first quarter's international comparable sales results. On a local
currency basis, international comparable sales increased 5% in the first
quarter.
Net income for the first quarter of fiscal 2008 increased 11% to $262
million, or $.59 per diluted share, from $237 million, or $.51 per diluted
share, during the first quarter of fiscal 2007.
Costco currently operates 529 warehouses, including 389 in the United
States and Puerto Rico, 75 in Canada, 19 in the United Kingdom, five in
Korea, five in Taiwan, six in Japan and 30 in Mexico. The Company also
operates Costco Online, an electronic commerce web site, at www.costco.com
and at www.costco.ca in Canada.
A conference call to discuss these first quarter results is scheduled for
8:00 a.m. (PT) today, December 13, 2007, and is available via a webcast on
www.costco.com (click on Investor Relations and "Webcasts").
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,
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 and workers' compensation costs), rising costs associated with
the acquisition of merchandise (including the direct and indirect effects
of the rising cost of petroleum-based products and fuel and energy costs),
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 thousands, except per share data)
(unaudited)
12 Weeks Ended
--------------------------
November 25, November 26,
2007 2006
------------ ------------
REVENUE
Net sales $ 15,471,500 $ 13,852,321
Membership fees 338,030 299,303
------------ ------------
Total revenue 15,809,530 14,151,624
OPERATING EXPENSES
Merchandise costs 13,823,511 12,388,958
Selling, general and administrative 1,569,594 1,382,467
Preopening expenses 21,492 22,727
Provision for impaired assets and closing
costs, net 79 4,332
------------ ------------
Operating income 394,854 353,140
OTHER INCOME (EXPENSE)
Interest expense (22,968) (2,140)
Interest income and other 33,277 27,111
------------ ------------
INCOME BEFORE INCOME TAXES 405,163 378,111
Provision for income taxes 143,182 141,225
------------ ------------
NET INCOME $ 261,981 $ 236,886
============ ============
NET INCOME PER COMMON SHARE:
Basic $ 0.60 $ 0.52
============ ============
Diluted $ 0.59 $ 0.51
============ ============
Shares used in calculation (000’s)
Basic 435,090 458,873
Diluted 445,717 467,836
Dividends per share $ 0.145 $ 0.130
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264