ISSAQUAH, Wash., May 30, 2019 (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 thirty-six weeks of fiscal 2019, ended May 12, 2019.

Net sales for the quarter increased 7.4 percent, to $33.96 billion, from $31.62 billion last year. Net sales for the first thirty-six weeks increased 8.3 percent, to $102.90 billion, from $95.02 billion last year.

Comparable sales for the third quarter and year-to-date periods ended May 12, 2019, were as follows:

	12 Weeks		12 Weeks		36 Weeks		36 Weeks
			Adjusted*				Adjusted*
U.S.	7.0%		5.5%		8.5%		6.9%
Canada	1.3%		5.1%		1.1%		5.5%
Other International	1.7%		6.9%		2.1%		5.8%
Total Company	5.5%		5.6%		6.6%		6.5%
E-commerce	22.0%		19.5%		24.7%		23.9%

*Excluding the impacts from changes in gasoline prices, foreign exchange, and a previously disclosed accounting change concerning revenue recognition (ASC 606).

Net income for the quarter was $906 million, or $2.05 per diluted share, compared to $750 million, or $1.70 per diluted share, last year. Net income for the thirty-six weeks was $2.56 billion, or $5.79 per diluted share, compared to $2.09 billion, or $4.74 per diluted share, last year. This year’s third quarter benefitted from a non-recurring tax item of $73 million, or 16 cents per diluted share.

Costco currently operates 773 warehouses, including 536 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two in Spain, and one each in Iceland and France. Costco also operates e-commerce 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, May 30, 2019, 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,” “may,” “might,” “likely,” “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 remediate material weaknesses in internal control, 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 that they are made, and the Company does not undertake to update them, 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 CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data)(unaudited)

	12 Weeks Ended								36 Weeks Ended
	May 12, 2019				May 13, 2018				May 12, 2019				May 13, 2018
REVENUE
Net Sales	$	33,964			$	31,624			$	102,903			$	95,020
Membership fees	776				737				2,302				2,145
Total revenue	34,740				32,361				105,205				97,165
OPERATING EXPENSES
Merchandise costs	30,233				28,131				91,576				84,481
Selling, general and administrative	3,371				3,155				10,310				9,613
Preopening expenses	14				8				45				37
Operating income	1,122				1,067				3,274				3,034
OTHER INCOME (EXPENSE)
Interest expense	(35		)		(37		)		(105		)		(111		)
Interest income and other, net	36				41				104				70
INCOME BEFORE INCOME TAXES	1,123				1,071				3,273				2,993
Provision for income taxes	207				309				679				867
Net income including noncontrolling interests	916				762				2,594				2,126
Net income attributable to noncontrolling interests	(10		)		(12		)		(32		)		(35		)
NET INCOME ATTRIBUTABLE TO COSTCO	$	906			$	750			$	2,562			$	2,091
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic	$	2.06			$	1.71			$	5.83			$	4.77
Diluted	$	2.05			$	1.70			$	5.79			$	4.74
Shares used in calculation (000’s):
Basic	439,859				438,740				439,767				438,576
Diluted	442,642				441,715				442,565				441,383

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

Subject to Reclassifications

			May 12, 2019				September 2, 2018
ASSETS
CURRENT ASSETS
Cash and cash equivalents			$	7,013			$	6,055
Short-term investments			1,154				1,204
Receivables, net			1,704				1,669
Merchandise inventories			11,304				11,040
Other current assets			1,110				321
Total current assets			22,285				20,289
PROPERTY AND EQUIPMENT
Land			6,310				6,193
Buildings and improvements			16,644				16,107
Equipment and fixtures			7,858				7,274
Construction in progress			1,412				1,140
			32,224				30,714
Less accumulated depreciation and amortization			(11,749		)		(11,033		)
Net property and equipment			20,475				19,681
OTHER ASSETS			992				860
TOTAL ASSETS			$	43,752			$	40,830
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable			$	11,331			$	11,237
Accrued salaries and benefits			2,888				2,994
Accrued member rewards			1,160				1,057
Deferred membership fees			1,761				1,624
Current portion of long-term debt			1,699				90
Other current liabilities			3,993				2,924
Total current liabilities			22,832				19,926
LONG-TERM DEBT, excluding current portion			4,799				6,487
OTHER LIABILITIES			1,301				1,314
Total liabilities			28,932				27,727
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $0.01 par value; 100,000,000 shares authorized; no shares issued and outstanding			—				—
Common stock $0.01 par value; 900,000,000 shares authorized; 439,811,000 and 438,189,000 shares issued and outstanding			4				4
Additional paid-in capital			6,307				6,107
Accumulated other comprehensive loss			(1,321		)		(1,199		)
Retained earnings			9,496				7,887
Total Costco stockholders’ equity			14,486				12,799
Noncontrolling interests			334				304
Total equity			14,820				13,103
TOTAL LIABILITIES AND EQUITY			$	43,752			$	40,830

Source: Costco Wholesale Corporation

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