Costco Wholesale — Dec 12, 2024 release

Exhibit 99.1 Press Release COSTCO WHOLESALE CORPORATION REPORTS FIRST QUARTER FISCAL YEAR 2025 OPERATING RESULTS ISSAQUAH, Wash., December 12, 2024 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced its operating results for the first quarter of fiscal 2025 (twelve weeks), ended November 24, 2024. Net sales for the first quarter increased 7.5 percent, to $60.99 billion from $56.72 billion last year. Comparable sales for the first quarter fiscal 2025 were as follows: 12 Weeks 12 Weeks Adjusted* U.S. 5.2% 7.2% Canada 5.8% 6.7% Other International 4.7% 7.1% Total Company 5.2% 7.1% E-commerce 13.0% 13.2% *Excluding the impacts from changes in gasoline prices and foreign exchange. Net income for the quarter was $1,798 million, $4.04 per diluted share, compared to $1,589 million, $3.58 per diluted share, last year. This year's results included a tax benefit of $100 million, $0.22 per diluted share, related to stock-based compensation. Last year's results included a tax benefit of $44 million, $0.10 per diluted share, also related to stock-based compensation. Costco currently operates 897 warehouses, including 617 in the United States and Puerto Rico, 109 in Canada, 41 in Mexico, 36 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia. A conference call to discuss these results is scheduled for 2:00 p.m. (PT) today, December 12, 2024, and is available via a webcast on investor.costco.com (click "Events & Presentations”). Press Release 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,” “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, inflation or deflation, 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 and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, 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. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP. CONTACTS:    Costco Wholesale Corporation David Sherwood, 425/313-8239 Josh Dahmen, 425/313-8254 Andrew Yoon, 425/313-6305 COST-Earn Press Release COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (dollars in millions, except per share data) (unaudited) 12 Weeks Ended November 24, 2024 November 26, 2023 REVENUE Net sales $ 60,985  $ 56,717  Membership fees 1,166  1,082  Total revenue 62,151  57,799  OPERATING EXPENSES Merchandise costs 54,109  50,457  Selling, general and administrative 5,846  5,358  Operating income 2,196  1,984  OTHER INCOME (EXPENSE) Interest expense (37) (38) Interest income and other, net 147  160  INCOME BEFORE INCOME TAXES 2,306  2,106  Provision for income taxes 508  517  NET INCOME $ 1,798  $ 1,589  NET INCOME PER COMMON SHARE: Basic $ 4.05  $ 3.58  Diluted $ 4.04  $ 3.58  Shares used in calculation (000's): Basic 443,988  443,827  Diluted 444,891  444,403  Press Release COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS  (amounts in millions, except par value and share data) (unaudited) Subject to Reclassification November 24, 2024 September 1, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 10,907  $ 9,906  Short-term investments 920  1,238  Receivables, net 2,963  2,721  Merchandise inventories 20,979  18,647  Other current assets 1,754  1,734  Total current assets 37,523  34,246  OTHER ASSETS Property and equipment, net 29,336  29,032  Operating lease right-of-use assets 2,539  2,617  Other long-term assets 3,988  3,936  TOTAL ASSETS $ 73,386  $ 69,831  LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 21,793  $ 19,421  Accrued salaries and benefits 4,785  4,794  Accrued member rewards 2,444  2,435  Deferred membership fees 2,683  2,501  Other current liabilities 6,584  6,313  Total current liabilities 38,289  35,464  OTHER LIABILITIES Long-term debt, excluding current portion 5,745  5,794  Long-term operating lease liabilities 2,288  2,375  Other long-term liabilities 2,613  2,576  TOTAL LIABILITIES 48,935  46,209  COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $0.005 par value; 100,000,000 shares authorized; no shares issued and outstanding —  —  Common stock $0.005 par value; 900,000,000 shares authorized; 443,942,000 and 443,126,000 shares issued and outstanding 2  2  Additional paid-in capital 7,901  7,829  Accumulated other comprehensive loss (2,152) (1,828) Retained earnings 18,700  17,619  TOTAL EQUITY 24,451  23,622  TOTAL LIABILITIES AND EQUITY $ 73,386  $ 69,831  Press Release COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (amounts in millions) (unaudited) Subject to Reclassification 12 Weeks Ended November 24, 2024 November 26, 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,798  $ 1,589  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 548  501  Non-cash lease expense 72  74  Stock-based compensation 463  444  Other non-cash operating activities, net (72) 43  Changes in working capital 451  2,000  Net cash provided by operating activities 3,260  4,651  CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments (247) (200) Maturities and sales of short-term investments 541  878  Additions to property and equipment (1,264) (1,040) Other investing activities, net (15) (4) Net cash used in investing activities (985) (366) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of short-term borrowings (194) (173) Proceeds from short-term borrowings 133  144  Proceeds from issuance of long-term debt —  498  Tax withholdings on stock-based awards (389) (292) Repurchases of common stock (207) (162) Cash dividend payments (515) (905) Financing lease payments and other financing activities, net (21) (84) Net cash used in financing activities (1,193) (974) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (81) —  Net change in cash and cash equivalents 1,001  3,311  CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 9,906  13,700  CASH AND CASH EQUIVALENTS END OF YEAR $ 10,907  $ 17,011