Costco Wholesale (COST) 8-K Costco Wholesale Corporation Reports First Quarter Fiscal Year 2014 Operating Results

Exhibit 99.1

News from

COSTCO WHOLESALE CORPORATION REPORTS FIRST QUARTER FISCAL YEAR 2014 OPERATING RESULTS

ISSAQUAH, Wash., December 11, 2013 - 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.

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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.

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

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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

	12 Weeks Ended
	November 24, 2013			November 25, 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

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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

(unaudited)

Subject to Reclassifications

	November 24, 2013		September 1, 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

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