Costco Wholesale (COST) 8-K Costco Wholesale Corporation Reports Fourth Quarter and Fiscal

Exhibit 99.1

Press Release

COSTCO WHOLESALE CORPORATION REPORTS FOURTH QUARTER AND FISCAL

YEAR 2019 OPERATING RESULTS

ISSAQUAH, Wash., October 3, 2019 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the16-week fourth quarter and the52-week fiscal year, ended September 1, 2019.

Net sales for the quarter were $46.45 billion, an increase of 7.0 percent from $43.41 billion during the similar period last year. Net sales for the fiscal year were $149.35 billion, an increase of 7.9 percent from $138.43 billion during the similar period last year.

Comparable sales for the fourth quarter and the fiscal year were as follows:

	16 Weeks			16 Weeks			52 Weeks			52 Weeks
				Adjusted*						Adjusted*
U.S.		6.2	%		5.2	%		7.8	%		6.4	%
Canada		2.6	%		4.7	%		1.6	%		5.3	%
Other International		1.9	%		5.0	%		2.0	%		5.6	%
Total Company		5.1	%		5.1	%		6.1	%		6.1	%
E-commerce		19.8	%		21.9	%		23.1	%		23.3	%

* Excluding the impacts from changes in gasoline prices, foreign exchange, and a previously disclosed accounting change concerning revenue recognition (ASC 606).

Net income for the fourth quarter was $1,097 million, or $2.47 per diluted share, compared to $1,043 million, or $2.36 per diluted share, last year. This year’s fourth quarter was negatively impacted by a $123 millionpre-tax reserve to SG&A ($96 millionafter-tax), or 22 cents per diluted share, related to a product tax assessment.

Net income for the fiscal year was $3.66 billion, or $8.26 per diluted share, compared to $3.13 billion, or $7.09 per diluted share, in the prior year. As previously disclosed and mentioned above, this year’s net income was impacted by a net benefit of $30 million or $0.07 per diluted share from primarilynon-recurring items. Last year was positively impacted by a first quarter tax benefit of $41 million or $0.09 per diluted share.

Costco currently operates 783 warehouses, including 544 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two in Spain, one in France, one in Iceland, and one in China. Costco also operatese-commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea and Taiwan.

A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, October 3, 2019, 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. In some cases forward-looking statements can be identified because they contain words

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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, 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), the ability to remediate material weaknesses in internal control, 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 that they are made, and the Company does not undertake to update them, except as required by law.

CONTACTS: Costco Wholesale Corporation

Richard Galanti,425/313-8203

Bob Nelson,425/313-8255

David Sherwood,425/313-8239

Josh Dahmen,425/313-8254

Press Release

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data)

(unaudited)

	16 Weeks Ended						52 Weeks Ended
	September 1, 2019			September 2, 2018			September 1, 2019			September 2, 2018
REVENUE
Net sales	$	46,448		$	43,414		$	149,351		$	138,434
Membership fees		1,050			997			3,352			3,142
Total revenue		47,498			44,411			152,703			141,576
OPERATING EXPENSES
Merchandise costs		41,310			38,671			132,886			123,152
Selling, general and administrative		4,684			4,263			14,994			13,876
Preopening expenses		41			31			86			68
Operating income		1,463			1,446			4,737			4,480
OTHER INCOME (EXPENSE)
Interest expense		(45	)		(48	)		(150	)		(159	)
Interest income and other, net		74			51			178			121
INCOME BEFORE INCOME TAXES		1,492			1,449			4,765			4,442
Provision for income taxes		382			396			1,061			1,263
Net income including noncontrolling interests		1,110			1,053			3,704			3,179
Net income attributable to noncontrolling interests		(13	)		(10	)		(45	)		(45	)
NET INCOME ATTRIBUTABLE TO COSTCO	$	1,097		$	1,043		$	3,659		$	3,134
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic	$	2.49		$	2.38		$	8.32		$	7.15
Diluted	$	2.47		$	2.36		$	8.26		$	7.09
Shares used in calculation (000’s):
Basic		439,727			438,379			439,755			438,515
Diluted		443,400			442,427			442,923			441,834

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COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in millions, except par value and share data)

(unaudited)

Subject to Reclassifications

	September 1, 2019			September 2, 2018
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	8,384		$	6,055
Short-term investments		1,060			1,204
Receivables, net		1,535			1,669
Merchandise inventories		11,395			11,040
Other current assets		1,111			321
Total current assets		23,485			20,289
PROPERTY AND EQUIPMENT
Land		6,417			6,193
Buildings and improvements		17,136			16,107
Equipment and fixtures		7,801			7,274
Construction in progress		1,272			1,140
		32,626			30,714
Less accumulated depreciation and amortization		(11,736	)		(11,033	)
Net property and equipment		20,890			19,681
OTHER ASSETS		1,025			860
TOTAL ASSETS	$	45,400		$	40,830
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	11,679		$	11,237
Accrued salaries and benefits		3,176			2,994
Accrued member rewards		1,180			1,057
Deferred membership fees		1,711			1,624
Current portion of long-term debt		1,699			90
Other current liabilities		3,792			2,924
Total current liabilities		23,237			19,926
LONG-TERM DEBT, excluding current portion		5,124			6,487
OTHER LIABILITIES		1,455			1,314
Total liabilities		29,816			27,727
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $0.01 par value; 100,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock $0.01 par value; 900,000,000 shares authorized; 439,625,000 and 438,189,000 shares issued and outstanding		4			4
Additionalpaid-in capital		6,417			6,107
Accumulated other comprehensive loss		(1,436	)		(1,199	)
Retained earnings		10,258			7,887
Total Costco stockholders’ equity		15,243			12,799
Noncontrolling interests		341			304
Total equity		15,584			13,103
TOTAL LIABILITIES AND EQUITY	$	45,400		$	40,830