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Costco Wholesale Corporation Reports First Quarter Fiscal Year 2014 Operating Results

ISSAQUAH, WA -- (Marketwired) -- 12/11/13 -- Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the first quarter (twelve weeks) of fiscal 2014, ended November 24, 2013.

Net sales for the quarter increased five percent, to $24.47 billion from $23.20 billion during the first quarter last year. Comparable sales for the first quarter of fiscal 2014 were as follows:


                                          12 Weeks
                                          --------
                          U.S.
                                             3%
                          International      1%

                          Total Company      3%
                                          ========

Comparable sales for the twelve-week period, excluding negative impacts from gasoline price deflation and foreign exchange, were as follows:


                                          12 Weeks
                                          --------
                          U.S.
                                             4%
                          International      6%

                          Total Company      5%
                                          ========

Net income for the quarter was $425 million, or $.96 per diluted share, compared to $416 million, or $.95 per diluted share, last year.

Costco currently operates 648 warehouses, including 461 in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 18 in Japan, 10 in Taiwan, nine in Korea and five in Australia. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

A conference call to discuss these fiscal 2014 first quarter operating results is scheduled for 8:00 a.m. (PT) today, December 11, 2013, 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, conditions affecting the acquisition, development, ownership or use of real estate, amounts expected to be spent on expansion plans, 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.


                        COSTCO WHOLESALE CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                (dollars in millions, except per share data)
                                (unaudited)

                                                       12 Weeks Ended
                                                 --------------------------
                                                 November 24,  November 25,
                                                     2013           2012
                                                 ------------  ------------
REVENUE
  Net sales                                      $     24,468  $     23,204
  Membership fees                                         549           511
                                                 ------------  ------------
    Total revenue                                      25,017        23,715
OPERATING EXPENSES
  Merchandise costs                                    21,824        20,726
  Selling, general and administrative                   2,501         2,332
  Preopening expenses                                      24            18
                                                 ------------  ------------
    Operating income                                      668           639
OTHER INCOME (EXPENSE)
  Interest expense                                        (27)          (13)
  Interest income and other, net                           18            20
                                                 ------------  ------------
INCOME BEFORE INCOME TAXES                                659           646
  Provision for income taxes                              228           225
                                                 ------------  ------------
Net income including noncontrolling interests             431           421
Net income attributable to noncontrolling
 interests                                                 (6)           (5)
                                                 ------------  ------------
NET INCOME ATTRIBUTABLE TO COSTCO                $        425  $        416
                                                 ============  ============

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO
 COSTCO:
  Basic                                          $       0.97  $       0.96
                                                 ============  ============
  Diluted                                        $       0.96  $       0.95
                                                 ============  ============

Shares used in calculation (000's)
  Basic                                               437,970       433,423
  Diluted                                             442,420       438,643

CASH DIVIDENDS DECLARED PER COMMON SHARE         $       0.31  $      0.275



                        COSTCO WHOLESALE CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                            (dollars in millions)
                                 (unaudited)

Subject to Reclassifications
                                                   November 24, September 1,
                                                       2013         2013
                                                   ------------ ------------
                      ASSETS
Cash and cash equivalents                          $      4,699 $      4,644
Short-term investments                                    1,740        1,480
Receivables, net                                          1,145        1,201
Merchandise inventories                                   9,337        7,894
Deferred income taxes and other current assets              552          621
                                                   ------------ ------------
  Total current assets                                   17,473       15,840
Property and equipment, net                              14,254       13,881
Other assets                                                592          562
                                                   ------------ ------------
TOTAL ASSETS                                       $     32,319 $     30,283
                                                   ============ ============

              LIABILITIES AND EQUITY

Accounts payable                                   $      9,199 $      7,872
Accrued salaries and benefits                             2,070        2,037
Other current liabilities                                 2,424        2,181
Deferred membership fees                                  1,240        1,167
                                                   ------------ ------------
  Total current liabilities                              14,933       13,257
Long-term debt, excluding current portion                 4,987        4,998
Deferred income taxes and other liabilities                 990        1,016
                                                   ------------ ------------
  Total liabilities                                      20,910       19,271
                                                   ------------ ------------

Total Costco stockholders' equity                        11,221       10,833
Noncontrolling interests                                    188          179
                                                   ------------ ------------
  Total equity                                           11,409       11,012
                                                   ------------ ------------
TOTAL LIABILITIES AND EQUITY                       $     32,319 $     30,283
                                                   ============ ============



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

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