Costco Wholesale — Mar 7, 2024 release

Exhibit 99.1 Press Release COSTCO WHOLESALE CORPORATION REPORTS SECOND QUARTER AND YEAR-TO-DATE OPERATING RESULTS FOR FISCAL 2024 AND FEBRUARY SALES RESULTS ISSAQUAH, Wash., March 7, 2024 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2024, ended February 18, 2024. Net sales for the quarter increased 5.7 percent, to $57.33 billion, from $54.24 billion last year. Net sales for the first 24 weeks increased 5.9 percent, to $114.05 billion, from $107.68 billion last year. Net sales for the Company were negatively impacted by approximately one and one-half percent for the quarter and by approximately one-half percent for the first 24 weeks of fiscal 2024 from the shift of the fiscal calendar, as a result of the fifty-third week last year. The following comparable sales data reflect comparable locations year-over-year and comparable retail weeks. Comparable sales for the second quarter and first 24 weeks of fiscal 2024 were as follows: 12 Weeks 12 Weeks 24 Weeks 24 Weeks Adjusted* Adjusted* U.S. 4.3% 4.8% 3.1% 3.7% Canada 9.2% 9.0% 7.8% 8.6% Other International 8.6% 8.2% 9.8% 7.7% Total Company 5.6% 5.8% 4.7% 4.8% E-commerce 18.4% 18.2% 12.2% 12.0% *Excluding the impacts from changes in gasoline prices and foreign exchange. Net income for the quarter was $1,743 million, $3.92 per diluted share, compared to $1,466 million, $3.30 per diluted share, last year. This year's second quarter net income was positively impacted by a $94 million ($0.21 per diluted share) tax benefit due to the deductibility of the $15 per share special dividend to the extent received by 401(k) plan participants. Net income for the first 24 weeks was $3.33 billion, $7.49 per diluted share, compared to $2.83 billion, $6.37 per diluted share, last year. For the four-week reporting month of February, ended March 3, 2024, the Company reported net sales of $18.21 billion, an increase of 6.9 percent from $17.04 billion last year. Net sales for the first 26 weeks were $123.15 billion, an increase of 6.1 percent from $116.06 billion last year. Press Release Comparable sales for the periods ended March 3, 2024, were as follows: 4 Weeks 4 Weeks 26 Weeks 26 Weeks Adjusted* Adjusted* U.S. 3.4% 4.1% 3.2% 3.8% Canada 8.4% 8.3% 7.9% 8.7% Other International 10.2% 11.3% 9.8% 7.8% Total Company 5.0% 5.6% 4.7% 4.9% E-commerce 16.2% 16.0% 12.6% 12.4% *Excluding the impacts from changes in gasoline prices and foreign exchange. Costco currently operates 875 warehouses, including 603 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, six in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, March 7, 2024, and is available via a webcast on investor.costco.com (click on "Events & Presentations”). 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,” “likely,” “may,” “might,” “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, inflation or deflation, 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 and the Ukraine conflict), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to climate change, public-health related factors, 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 the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with GAAP. CONTACTS:    Costco Wholesale Corporation David Sherwood, 425/313-8239 Josh Dahmen, 425/313-8254 Andrew Yoon, 425/313-6305 COST-Earn COST-Sales Press Release COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (dollars in millions, except per share data) (unaudited) 12 Weeks Ended 24 Weeks Ended February 18, 2024 February 12, 2023 February 18, 2024 February 12, 2023 REVENUE Net sales $ 57,331  $ 54,239  $ 114,048  $ 107,676  Membership fees 1,111  1,027  2,193  2,027  Total revenue 58,442  55,266  116,241  109,703  OPERATING EXPENSES Merchandise costs 51,140  48,423  101,597  96,192  Selling, general and administrative 5,240  4,940  10,598  9,857  Operating income 2,062  1,903  4,046  3,654  OTHER INCOME (EXPENSE) Interest expense (41) (34) (79) (68) Interest income and other, net 216  114  376  167  INCOME BEFORE INCOME TAXES 2,237  1,983  4,343  3,753  Provision for income taxes 494  517  1,011  923  NET INCOME $ 1,743  $ 1,466  $ 3,332  $ 2,830  NET INCOME PER COMMON SHARE: Basic $ 3.93  $ 3.30  $ 7.51  $ 6.37  Diluted $ 3.92  $ 3.30  $ 7.49  $ 6.37  Shares used in calculation (000's): Basic 443,892  443,877  443,859  443,857  Diluted 444,754  444,475  444,579  444,503  Press Release COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS  (amounts in millions, except par value and share data) (unaudited) Subject to Reclassification February 18, 2024 September 3, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,095  $ 13,700  Short-term investments 1,226  1,534  Receivables, net 2,779  2,285  Merchandise inventories 17,075  16,651  Other current assets 1,971  1,709  Total current assets 32,146  35,879  OTHER ASSETS Property and equipment, net 27,601  26,684  Operating lease right-of-use assets 2,740  2,713  Other long-term assets 3,836  3,718  TOTAL ASSETS $ 66,323  $ 68,994  LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 17,494  $ 17,483  Accrued salaries and benefits 4,801  4,278  Accrued member rewards 2,268  2,150  Deferred membership fees 2,541  2,337  Current portion of long-term debt 1,080  1,081  Other current liabilities 6,504  6,254  Total current liabilities 34,688  33,583  OTHER LIABILITIES Long-term debt, excluding current portion 5,865  5,377  Long-term operating lease liabilities 2,488  2,426  Other long-term liabilities 2,522  2,550  TOTAL LIABILITIES 45,563  43,936  COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding —  —  Common stock $0.005 par value; 900,000,000 shares authorized; 443,549,000 and 442,793,000 shares issued and outstanding 2  2  Additional paid-in capital 7,620  7,340  Accumulated other comprehensive loss (1,842) (1,805) Retained earnings 14,980  19,521  TOTAL EQUITY 20,760  25,058  TOTAL LIABILITIES AND EQUITY $ 66,323  $ 68,994  Press Release COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (amounts in millions) (unaudited) Subject to Reclassification 24 Weeks Ended February 18, 2024 February 12, 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 3,332  $ 2,830  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,015  917  Non-cash lease expense 148  216  Stock-based compensation 580  549  Impairment of assets and other non-cash operating activities, net (7) 145  Changes in working capital 314  1,145  Net cash provided by operating activities 5,382  5,802  CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments (719) (396) Maturities and sales of short-term investments 1,029  512  Additions to property and equipment (2,071) (1,947) Other investing activities, net 9  (34) Net cash used in investing activities (1,752) (1,865) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of short-term borrowings (409) (520) Proceeds from short-term borrowings 383  479  Proceeds from issuance of long-term debt 498  —  Tax withholdings on stock-based awards (292) (302) Repurchases of common stock (322) (284) Cash dividend payments (8,012) (400) Financing lease payments (94) (158) Other financing activities, net (2) (30) Net cash used in financing activities (8,250) (1,215) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 15  45  Net change in cash and cash equivalents (4,605) 2,767  CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 13,700  10,203  CASH AND CASH EQUIVALENTS END OF YEAR $ 9,095  $ 12,970