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This content is a press release from our partner Globe Newswire. The AP newsroom and editorial departments were not involved in its creation.

Costco Wholesale Corporation Reports Second Quarter and Year-To-Date Operating Results for Fiscal 2019 and February Sales Results

March 7, 2019

ISSAQUAH, Wash., March 07, 2019 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2019, ended February 17, 2019.

Net sales for the quarter increased 7.3 percent, to $34.63 billion from $32.28 billion last year. Net sales for the first 24 weeks increased 8.7 percent, to $68.94 billion from $63.40 billion last year.

Comparable sales for the second quarter and year-to-date periods ended February 17, 2019, were as follows:

12 Weeks 12 Weeks 24 Weeks 24 Weeks -------- --------- -------- --------- Adjusted* Adjusted* U.S. 7.4% 7.2% 9.2% 7.6% Canada -0.3% 6.0% 1.1% 5.7% Other International 0.7% 4.8% 2.3% 5.3% Total Company 5.4% 6.7% 7.1% 7.0% -------- --------- -------- --------- E-commerce 20.2% 25.5% 25.9% 25.8% -------- --------- -------- ---------

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

Reported net income for the quarter was $889 million, or $2.01 per diluted share, compared to $701 million, or $1.59 per diluted share, last year. Net income for the first 24 weeks was $1.66 billion, or $3.74 per diluted share, compared to $1.34 billion, or $3.04 per diluted share, last year.

For the four-week reporting month of February, ended March 3, 2019, the Company reported net sales of $10.72 billion, an increase of 5.0 percent from $10.21 billion last year. For the twenty-six week period ended March 3, 2019, net sales were $74.42 billion, an increase of 8.6 percent from $68.51 billion last year.

Comparable sales for the February and year-to-date periods ended March 3, 2019, were as follows:

4 Weeks 4 Weeks 26 Weeks 26 Weeks ------- --------- -------- --------- Adjusted* Adjusted* U.S. 6.0% 5.7% 9.0% 7.4% Canada 0.0% 4.8% 1.1% 5.7% Other International -5.9% -1.2% 2.3% 5.5% Total Company 3.5% 4.6% 6.9% 6.9% ------- --------- -------- --------- E-commerce 24.2% 21.6% 26.2% 25.5% ------- --------- -------- ---------

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

February’s sales were negatively impacted approximately 1% by weather throughout the U.S. and Canada. In addition, Lunar New Year/Chinese New Year occurred eleven days earlier in February this year, negatively impacting February’s Other International sales by approximately 4.5% and Total Company sales by approximately 0.5%.

Costco currently operates 770 warehouses, including 535 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the United Kingdom, 26 in Japan, 15 in Korea, 13 in Taiwan, 10 in Australia, two in Spain, and one each in Iceland and France. Costco also operates e-commerce 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, March 7, 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 such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “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 they are made, and the Company does not undertake to update these statements, except as required by law.

CONTACTS: Costco Wholesale CorporationRichard Galanti, 425/313-8203Bob Nelson, 425/313-8255David Sherwood, 425/313-8239Josh Dahmen, 425/313-8254

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

12 Weeks Ended 24 Weeks Ended February February February February 17, 2019 18, 2018 17, 2019 18, 2018 ---------- ---------- ---------- ---------- REVENUE Net sales $ 34,628 $ 32,279 $ 68,939 $ 63,396 Membership fees 768 716 1,526 1,408 -------- - -------- - -------- - -------- - Total revenue 35,396 32,995 70,465 64,804 OPERATING EXPENSES Merchandise costs 30,720 28,733 61,343 56,350 Selling, general and administrative 3,464 3,234 6,939 6,458 Preopening expenses 9 12 31 29 -------- - -------- - -------- - -------- - Operating income 1,203 1,016 2,152 1,967 OTHER INCOME (EXPENSE) Interest expense (34 ) (37 ) (70 ) (74 ) Interest income and other, net 46 7 68 29 -------- - -------- - -------- - -------- - INCOME BEFORE INCOME TAXES 1,215 986 2,150 1,922 Provision for income taxes 314 273 472 558 -------- - -------- - -------- - -------- - Net income including noncontrolling interests 901 713 1,678 1,364 Net income attributable to noncontrolling interests (12 ) (12 ) (22 ) (23 ) -------- - -------- - -------- - -------- - NET INCOME ATTRIBUTABLE TO COSTCO $ 889 $ 701 $ 1,656 $ 1,341 - ------ - - ------ - - ------ - - ------ - NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic $ 2.02 $ 1.60 $ 3.77 $ 3.06 - ------ - - ------ - - ------ - - ------ - Diluted $ 2.01 $ 1.59 $ 3.74 $ 3.04 - ------ - - ------ - - ------ - - ------ - Shares used in calculation (000’s): Basic 440,284 439,022 439,721 438,494 Diluted 442,337 441,568 442,535 441,201

COSTCO WHOLESALE CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data)(unaudited)

Subject to Reclassifications

February September 17, 2019 2, 2018 ---------- ---------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 6,080 $ 6,055 Short-term investments 1,042 1,204 Receivables, net 1,995 1,669 Merchandise inventories 11,356 11,040 Other current assets 1,175 321 Total current assets 21,648 20,289 -------- - -------- - PROPERTY AND EQUIPMENT Land 6,300 6,193 Buildings and improvements 16,533 16,107 Equipment and fixtures 7,704 7,274 Construction in progress 1,165 1,140 -------- - -------- - 31,702 30,714 Less accumulated depreciation and amortization (11,557 ) (11,033 ) Net property and equipment 20,145 19,681 -------- - -------- - OTHER ASSETS 1,006 860 -------- - -------- - TOTAL ASSETS $ 42,799 $ 40,830 - ------ - - ------ - LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 10,711 $ 11,237 Accrued salaries and benefits 3,173 2,994 Accrued member rewards 1,130 1,057 Deferred membership fees 1,735 1,624 Current portion of long-term debt 1,698 90 Other current liabilities 4,003 2,924 -------- - -------- - Total current liabilities 22,450 19,926 LONG-TERM DEBT, excluding current portion 4,794 6,487 OTHER LIABILITIES 1,372 1,314 Total liabilities 28,616 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; 439,989,000 and 4 4 438,189,000 shares issued and outstanding Additional paid-in capital 6,218 6,107 Accumulated other comprehensive loss (1,280 ) (1,199 ) Retained earnings 8,916 7,887 -------- - -------- - Total Costco stockholders’ equity 13,858 12,799 Noncontrolling interests 325 304 Total equity 14,183 13,103 -------- - -------- - TOTAL LIABILITIES AND EQUITY $ 42,799 $ 40,830 - ------ - - ------ -