Costco Wholesale — Sep 26, 2024 release

Exhibit 99.1 Press Release COSTCO WHOLESALE CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 OPERATING RESULTS ISSAQUAH, Wash., September 26, 2024 - 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 September 1, 2024. For the 16-week fourth quarter, the Company reported net sales of $78.2 billion, an increase of 1.0 percent compared to net sales of $77.4 billion in the 17-week fourth quarter of fiscal year 2023. For the 52-week fiscal year, the Company reported net sales of $249.6 billion, an increase of 5.0 percent from $237.7 billion reported in the 53-week fiscal year 2023. The following comparable sales data reflect comparable locations year-over-year and comparable retail weeks. Comparable sales were as follows: 16 Weeks 16 Weeks 52 Weeks 52 Weeks Adjusted* Adjusted* U.S. 5.3% 6.3% 4.5% 5.0% Canada 5.5% 7.9% 7.0% 8.1% Other International 5.7% 9.3% 8.1% 8.4% Total Company 5.4% 6.9% 5.3% 5.9% E-commerce 18.9% 19.5% 16.1% 16.2% *Excluding the impacts from changes in gasoline prices and foreign exchange. Net income for the 16-week fourth quarter was $2.354 billion, $5.29 per diluted share, compared to $2.160 billion, $4.86 per diluted share, in the 17-week fourth quarter last year. This year's results included a net non-recurring tax benefit of $63 million, $0.14 per diluted share, related to a transfer pricing settlement, and true-ups of tax reserves. Net income for the 52-week fiscal year was $7.367 billion, $16.56 per diluted share, compared to $6.292 billion, $14.16 per diluted share, in the 53-week prior year. Costco currently operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five 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 U.K., Mexico, Korea, Taiwan, Japan and Australia. A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, September 26, 2024, and will be available via a webcast on investor.costco.com (click "Events & Presentations”). Certain statements contained in this document and the pre-recorded message 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 Press Release 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 and wages), energy and certain commodities, geopolitical conditions (including tariffs), 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 U.S. GAAP. CONTACTS:    Costco Wholesale Corporation David Sherwood, 425/313-8239 Josh Dahmen, 425/313-8254 Andrew Yoon, 425/313-6305 COST-Earn Press Release COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME  (dollars in millions, except per share data) (unaudited) 16 Weeks Ended 17 Weeks Ended 52 Weeks Ended 53 Weeks Ended September 1, 2024 September 3, 2023 September 1, 2024 September 3, 2023 REVENUE Net sales $ 78,185  $ 77,430  $ 249,625  $ 237,710  Membership fees 1,512  1,509  4,828  4,580  Total revenue 79,697  78,939  254,453  242,290  OPERATING EXPENSES Merchandise costs 69,588  69,219  222,358  212,586  Selling, general and administrative 7,067  6,939  22,810  21,590  Operating income 3,042  2,781  9,285  8,114  OTHER INCOME (EXPENSE) Interest expense (49) (56) (169) (160) Interest income and other, net 120  238  624  533  INCOME BEFORE INCOME TAXES 3,113  2,963  9,740  8,487  Provision for income taxes 759  803  2,373  2,195  NET INCOME $ 2,354  $ 2,160  $ 7,367  $ 6,292  NET INCOME PER COMMON SHARE: Basic $ 5.30  $ 4.87  $ 16.59  $ 14.18  Diluted $ 5.29  $ 4.86  $ 16.56  $ 14.16  Shares used in calculation (000's): Basic 444,013  443,876  443,914  443,854  Diluted 444,977  444,445  444,759  444,452  Press Release COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS  (amounts in millions, except par value and share data) (unaudited) Subject to Reclassification September 1, 2024 September 3, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,906  $ 13,700  Short-term investments 1,238  1,534  Receivables, net 2,721  2,285  Merchandise inventories 18,647  16,651  Other current assets 1,734  1,709  Total current assets 34,246  35,879  OTHER ASSETS Property and equipment, net 29,032  26,684  Operating lease right-of-use assets 2,617  2,713  Other long-term assets 3,936  3,718  TOTAL ASSETS $ 69,831  $ 68,994  LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 19,421  $ 17,483  Accrued salaries and benefits 4,794  4,278  Accrued member rewards 2,435  2,150  Deferred membership fees 2,501  2,337  Current portion of long-term debt 103  1,081  Other current liabilities 6,210  6,254  Total current liabilities 35,464  33,583  OTHER LIABILITIES Long-term debt, excluding current portion 5,794  5,377  Long-term operating lease liabilities 2,375  2,426  Other long-term liabilities 2,576  2,550  TOTAL LIABILITIES 46,209  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; 443,126,000 and 442,793,000 shares issued and outstanding 2  2  Additional paid-in capital 7,829  7,340  Accumulated other comprehensive loss (1,828) (1,805) Retained earnings 17,619  19,521  TOTAL EQUITY 23,622  25,058  TOTAL LIABILITIES AND EQUITY $ 69,831  $ 68,994  Press Release COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (amounts in millions) (unaudited) Subject to Reclassification 52 Weeks Ended 53 Weeks Ended September 1, 2024 September 3, 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 7,367  $ 6,292  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,237  2,077  Non-cash lease expense 315  412  Stock-based compensation 818  774  Impairment of assets and other non-cash operating activities, net (9) 495  Changes in working capital 611  1,018  Net cash provided by operating activities 11,339  11,068  CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments (1,470) (1,622) Maturities and sales of short-term investments 1,790  937  Additions to property and equipment (4,710) (4,323) Other investing activities, net (19) 36  Net cash used in investing activities (4,409) (4,972) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of short-term borrowings (920) (935) Proceeds from short-term borrowings 928  917  Repayments of long-term debt (1,077) (75) Proceeds from issuance of long-term debt 498  —  Tax withholdings on stock-based awards (315) (303) Repurchases of common stock (700) (676) Cash dividend payments (9,041) (1,251) Financing lease payments (136) (291) Other financing activities, net (1) —  Net cash used in financing activities (10,764) (2,614) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 40  15  Net change in cash and cash equivalents (3,794) 3,497  CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 13,700  10,203  CASH AND CASH EQUIVALENTS END OF YEAR $ 9,906  $ 13,700