Costco Wholesale (COST) 8-K Costco Wholesale Corporation Reports Third Quarter and Year-to-date Operating Results for Fiscal Year 2013

Exhibit 99.1

COSTCO WHOLESALE CORPORATION REPORTS THIRD QUARTER AND YEAR-TO-DATE OPERATING RESULTS FOR FISCAL YEAR 2013

ISSAQUAH, Wash., May 30, 2013 – Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) announced today its operating results for the third quarter (twelve weeks) and the first thirty-six-weeks of fiscal 2013, ended May 12, 2013. Net sales for the quarter increased eight percent, to $23.55 billion, from $21.85 billion last year. Net sales for the first thirty-six weeks increased eight percent, to $71.10 billion, from $65.54 billion last year.

Comparable sales were as follows:

	12 Weeks			36 Weeks
U.S.		6	%		6	%
International		4	%		6	%
Total		5	%		6	%

Changes in gasoline prices and foreign exchange rates had negative impacts on comparable sales for the 12-week period; and immaterial impacts for the 36-week period. Excluding these effects, comparable sales were as follows:

	12 Weeks			36 Weeks
U.S.		7	%		6	%
International		7	%		6	%
Total		7	%		6	%

Net income for the quarter was $459 million, or $1.04 per diluted share, compared to $386 million, or $.88 per diluted share, last year. Net income for the first thirty-six weeks was $1.42 billion, or $3.23 per diluted share, compared to $1.10 billion, or $2.50 per diluted share, last year. Net income for the thirty-six weeks was positively impacted by a second quarter $62 million ($.14 per diluted share) tax benefit in connection with the portion of the special cash dividend paid in December 2012 to the Company 401(k) plan participants.

Costco currently operates 627 warehouses, including 449 in the United States and Puerto Rico, 85 in Canada, 33 in Mexico, 24 in the United Kingdom, 15 in Japan, nine in Taiwan, nine in Korea and three in Australia. The Company plans to open up to an additional nine new warehouses prior to the end of its fiscal year on September 1, 2013. Costco also operates electronic commerce web sites, atwww.costco.com (U.S.), www.costco.ca (Canada), andwww.costco.co.uk (United Kingdom).

A conference call to discuss these third quarter operating results is scheduled for 8:00 a.m. (PT) today, May 30, 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, 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.

CONTACTS: Costco Wholesale Corporation

Richard Galanti, 425/313-8203, Bob Nelson, 425/313-8255, Jeff Elliott, 425/313-8264

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

	12 Weeks Ended						36 Weeks Ended
	May 12, 2013			May 6, 2012			May 12, 2013			May 6, 2012
REVENUE
Net sales	$	23,552		$	21,849		$	71,099		$	65,538
Membership fees		531			475			1,570			1,381
Total revenue		24,083			22,324			72,669			66,919
OPERATING EXPENSES
Merchandise costs		21,038			19,543			63,530			58,613
Selling, general and administrative		2,313			2,152			7,006			6,474
Preopening expenses		10			6			34			22
Operating income		722			623			2,099			1,810
OTHER INCOME (EXPENSE)
Interest expense		(25	)		(19	)		(63	)		(73	)
Interest income and other, net		15			18			61			65
INCOME BEFORE INCOME TAXES		712			622			2,097			1,802
Provision for income taxes		248			217			658			657
Net income including noncontrolling interests		464			405			1,439			1,145
Net income attributable to noncontrolling interests		(5	)		(19	)		(17	)		(45	)
NET INCOME ATTRIBUTABLE TO COSTCO	$	459		$	386		$	1,422		$	1,100
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic	$	1.05		$	0.89		$	3.27		$	2.53
Diluted	$	1.04		$	0.88		$	3.23		$	2.50
Shares used in calculation (000’s)
Basic		436,488			433,791			435,293			434,180
Diluted		440,780			439,166			439,738			439,748
Cash dividends declared per common share	$	0.31		$	0.00		$	7.86		$	0.48

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

(unaudited)

Subject to Reclassifications

	May 12, 2013		September 2, 2012
ASSETS
Cash and cash equivalents	$	5,448	$	3,528
Short-term investments		1,062		1,326
Receivables, net		1,134		1,026
Merchandise inventories		7,635		7,096
Deferred income taxes and other current assets		584		550
Total current assets		15,863		13,526
Property and equipment, net		13,546		12,961
Other assets		597		653
TOTAL ASSETS	$	30,006	$	27,140
LIABILITIES AND EQUITY
Short-term borrowings	$	54	$	0
Accounts payable		7,788		7,303
Accrued salaries and benefits		1,911		1,832
Other current liabilities		2,544		2,024
Deferred membership fees		1,212		1,101
Total current liabilities		13,509		12,260
Long-term debt, excluding current portion		4,887		1,381
Deferred income taxes and other liabilities		963		981
Total liabilities		19,359		14,622
Total Costco stockholders’ equity		10,472		12,361
Noncontrolling interests		175		157
Total equity		10,647		12,518
TOTAL LIABILITIES AND EQUITY	$	30,006	$	27,140