ISSAQUAH, WA -- (Marketwire) -- 12/11/08 -- Costco Wholesale Corporation (NASDAQ: COST)
announced today its operating results for the first quarter (twelve weeks)
of fiscal 2009, ended November 23, 2008.
Net sales for the first quarter of fiscal 2009 increased four percent to
$16.04 billion from $15.47 billion during the first quarter of fiscal 2008.
On a comparable warehouse basis, that is warehouses open at least one year,
net sales increased one percent.
Comparable sales for the first quarter of fiscal 2009 were negatively
impacted by foreign exchange (primarily in Canada, United Kingdom and
Korea), as follows:
12 Weeks 12 Weeks
(as reported) (in local currencies)
-------------- ----------------
U.S. +3% +3%
International -7% +7%
Total Company +1% +4%
============== ================
Net income for the first quarter of fiscal 2009 was $262.5 million, or $.60
per diluted share, compared to $262.0 million, or $.59 per diluted share,
during the first quarter of fiscal 2008.
According to Richard Galanti, Chief Financial Officer of Costco, "First
quarter 2009 results benefited from very strong gasoline profitability when
compared to last year. Results were hurt by a slowdown in non-food
discretionary sales and related reductions in margins associated with these
sales, primarily in the latter half of the quarter. In addition, we
incurred certain pretax charges of $34.2 million, or $.05 per share,
related to the 'mark-to-market' adjustment of the cash surrender value of
certain life insurance contracts ($28.4 million charge to SG&A Expense) and
the impairment of corporate investments ($5.8 million charge to interest
income). Finally, our first quarter earnings were negatively impacted by
an estimated $22.7 million pretax, or $.03 per share, as a result of the
significant strengthening during the quarter of the U.S. dollar, as
compared to the Canada, United Kingdom, Korea and Mexico currencies."
Costco currently operates 550 warehouses, including 403 in the United
States and Puerto Rico, 76 in Canada, 21 in the United Kingdom, six in
Korea, five in Taiwan, eight in Japan and 31 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 results is scheduled for 8:00 a.m. (PT)
today, December 11, 2008, 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,
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 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 23, November 25,
2008 2007
------------ ------------
REVENUE
Net sales $ 16,035,452 $ 15,471,500
Membership fees 358,714 338,030
------------ ------------
Total revenue 16,394,166 15,809,530
OPERATING EXPENSES
Merchandise costs 14,276,670 13,823,511
Selling, general and administrative 1,676,995 1,569,594
Preopening expenses 12,849 21,492
Provision for impaired assets and closing
costs, net 6,764 79
------------ ------------
Operating income 420,888 394,854
OTHER INCOME (EXPENSE)
Interest expense (24,623) (22,968)
Interest income and other 18,177 33,277
------------ ------------
INCOME BEFORE INCOME TAXES 414,442 405,163
Provision for income taxes 151,942 143,182
------------ ------------
NET INCOME $ 262,500 $ 261,981
============ ============
NET INCOME PER COMMON SHARE:
Basic $ 0.61 $ 0.60
============ ============
Diluted $ 0.60 $ 0.59
============ ============
Shares used in calculation (000's)
Basic 432,451 435,090
Diluted 440,533 445,717
Dividends per share $ 0.160 $ 0.145
CONTACTS:
Costco Wholesale Corporation
Richard Galanti
425/313-8203
Bob Nelson
425/313-8255
Jeff Elliott
425/313-8264
