Costco 1st Quarter 2009 Earnings

Costco Wholesale Corporation Reports First Quarter Operating Results for Fiscal 2009
ISSAQUAH, WA, Dec 11, 2008 (MARKET WIRE via COMTEX News Network) --

Costco Wholesale Corporation (NASDAQ: COST) announced today its operating results for the first quarter (twelve weeks) of fiscal 2009, ended November 23, 2008.
Net sales for the first quarter of fiscal 2009 increased four percent to $16.04 billion from $15.47 billion during the first quarter of fiscal 2008. On a comparable warehouse basis, that is warehouses open at least one year, net sales increased one percent.

Net income for the first quarter of fiscal 2009 was $262.5 million, or $.60 per diluted share, compared to $262.0 million, or $.59 per diluted share, during the first quarter of fiscal 2008.
According to Richard Galanti, Chief Financial Officer of Costco, "First quarter 2009 results benefited from very strong gasoline profitability when compared to last year. Results were hurt by a slowdown in non-food discretionary sales and related reductions in margins associated with these sales, primarily in the latter half of the quarter. In addition, we incurred certain pretax charges of $34.2 million, or $.05 per share, related to the 'mark-to-market' adjustment of the cash surrender value of certain life insurance contracts ($28.4 million charge to SG&A Expense) and the impairment of corporate investments ($5.8 million charge to interest income). Finally, our first quarter earnings were negatively impacted by an estimated $22.7 million pretax, or $.03 per share, as a result of the significant strengthening during the quarter of the U.S. dollar, as compared to the Canada, United Kingdom, Korea and Mexico currencies."

Costco currently operates 550 warehouses, including 403 in the United States and Puerto Rico, 76 in Canada, 21 in the United Kingdom, six in Korea, five in Taiwan, eight in Japan and 31 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada.