Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2015 Operating Results

ISSAQUAH, WA--(Marketwired - Sep 29, 2015) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) today announced its operating results for the 16-week fourth quarter and the 52-week fiscal year ended August 30, 2015.

Net sales for the fourth quarter were $34.99 billion, an increase of one percent from $34.75 billion in fiscal 2014. Net sales for the fiscal year were $113.67 billion, an increase of three percent from $110.21 billion last year.

Comparable sales were as follows:

			16 Weeks		52 Weeks
U.S.			2%		3%
Canada			-10%		-5%
Other International			-7%		-3%
	Total Company		-1%		1%

Comparable sales for these periods excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:

			16 Weeks		52 Weeks
U.S.			6%		6%
Canada			7%		8%
Other International			6%		6%
	Total Company		6%		7%

Net income for the fourth quarter was $767 million, or $1.73 per diluted share, compared to $697 million, or $1.58 per diluted share, last year. 

Net income for this fiscal year was $2.38 billion, or $5.37 per diluted share, compared to $2.06 billion, or $4.65 per diluted share, last year. Net income this year was positively impacted by a $57 million ($.13 per diluted share) tax benefit in connection with a second-quarter special cash dividend received by the Company 401(k) plan participants.

Costco currently operates 686 warehouses, including 480 in the United States and Puerto Rico, 89 in Canada, 36 in Mexico, 27 in the United Kingdom, 23 in Japan, 12 in Korea, 11 in Taiwan, seven in Australia and one in Spain. The Company plans to open up to an additional 12 new warehouses (including one relocation) before the end of calendar year 2015. Costco also operates e-commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

A conference call to discuss these fiscal 2015 fourth quarter and year-end operating results is scheduled for 8:00 a.m. (PT) tomorrow, September 30, 2015, 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, 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 (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. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements, except as required by law.

COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
				16 Weeks Ended				16 Weeks Ended				52 Weeks Ended				52 Weeks Ended
				August 30, 2015				August 31, 2014				August 30, 2015				August 31, 2014
REVENUE
	Net sales			$	34,993			$	34,755			$	113,666			$	110,212
	Membership fees				785				768				2,533				2,428
		Total revenue			35,778				35,523				116,199				112,640
OPERATING EXPENSES
	Merchandise costs				31,096				31,037				101,065				98,458
	Selling, general and administrative				3,499				3,380				11,445				10,899
	Preopening expenses				27				15				65				63
		Operating income			1,156				1,091				3,624				3,220
OTHER INCOME (EXPENSE)
	Interest expense				(40	)			(35	)			(124	)			(113	)
	Interest income and other, net				40				30				104				90
INCOME BEFORE INCOME TAXES					1,156				1,086				3,604				3,197
	Provision for income taxes				378				381				1,195				1,109
Net income including noncontrolling interests					778				705				2,409				2,088
Net income attributable to noncontrolling interests					(11	)			(8	)			(32	)			(30	)
NET INCOME ATTRIBUTABLE TO COSTCO				$	767			$	697			$	2,377			$	2,058
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
	Basic			$	1.75			$	1.59			$	5.41			$	4.69
	Diluted			$	1.73			$	1.58			$	5.37			$	4.65
Shares used in calculation: (000's)
	Basic				438,835				437,875				439,455				438,693
	Diluted				442,404				441,887				442,716				442,485
Cash dividends declared per common share				$	0.40			$	0.355			$	6.51			$	1.33

COSTCO WHOLESALE CORPORATION

CONSOLIDATED BALANCE SHEETS

(amounts in millions, except par value and share data)

(unaudited)

Subject to Reclassifications

				August 30,  2015				August 31,  2014
ASSETS
CURRENT ASSETS
	Cash and cash equivalents			$	4,801			$	5,738
	Short-term investments				1,618				1,577
	Receivables, net				1,224				1,148
	Merchandise inventories				8,908				8,456
	Deferred income taxes and other current assets				748				669
		Total current assets			17,299				17,588
PROPERTY AND EQUIPMENT
	Land				4,961				4,716
	Buildings and improvements				12,618				12,522
	Equipment and fixtures				5,274				4,845
	Construction in progress				811				592
					23,664				22,675
	Less accumulated depreciation and amortization				(8,263	)			(7,845	)
		Net property and equipment			15,401				14,830
OTHER ASSETS					740				606
		TOTAL ASSETS		$	33,440			$	33,024
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Accounts payable			$	9,011			$	8,491
	Accrued salaries and benefits				2,468				2,231
	Accrued member rewards				813				773
	Deferred membership fees				1,269				1,254
	Current portion long-term debt				1,283				0
	Other current liabilities				1,696				1,663
		Total current liabilities			16,540				14,412
LONG-TERM DEBT, excluding current portion					4,864				5,093
DEFERRED INCOME TAXES AND OTHER LIABILITIES					1,193				1,004
		Total liabilities			22,597				20,509
COMMITMENTS AND CONTINGENCIES
EQUITY
	Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding				0				0
	Common stock $.005 par value; 900,000,000 shares authorized; 437,952,000 and 437,683,000 shares issued and outstanding				2				2
	Additional paid-in capital				5,218				4,919
	Accumulated other comprehensive loss				(1,121	)			(76	)
	Retained earnings				6,518				7,458
		Total Costco stockholders' equity			10,617				12,303
	Noncontrolling interests				226				212
		Total equity			10,843				12,515
		TOTAL LIABILITIES AND EQUITY		$	33,440			$	33,024

CONTACTS:
Costco Wholesale Corporation
Richard Galanti
425/313-8203
Bob Nelson
425/313-8255
Jeff Elliott
425/313-8264