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Profile – Costco Wholesale Corp.

Costco is a membership warehouse operator offering a large selection of products in a range of categories including dry, fresh, and packaged foods, cleaning and institutional supplies, appliances, electronics, furniture, apparel, and jewelry as well as gas stations, pharmacies, and food courts. As of Jan 31, 2010 the company operated 566 total warehouses, including 413 in the US and Puerto Rico, 77 in Canada, 21 in the UK, 7 in Korea, 6 in Taiwan, 9 in Japan, 32 in Mexico, and 1 in Australia.

Headquarters Issaquah, Washington
Sector Warehouse Clubs
Primary NAICS Code 452910 – Warehouse Clubs and Supercenters
Primary SIC Code 5399 – Misc. General Merchandise Stores
Fiscal Year 2010 Ends on Aug 29, 2010
2009 Net Sales $ 69.9 Billion
2009 E-Commerce Sales $ 1.6 Billion
2009 Net Income $ 1.1 Billion
Warehouse Clubs* 566
Total Store Sq Ft** 75,200,000
Employees** 142,000

*as of 1/31/10     **as of 8/30/09




Financial Summary
2009 2008 YoY % Chg 3 YR CAGR 5 YR CAGR
Net Sales (1,000’s) $ 69,889,000 $ 70,977,000 -1.5% 5.8% 8.2%
Same-Store Sales Chg -4.0% 8.0%
Membership Fees (1,000’s) $ 1,533,000 $ 1,506,000 1.8% 8.9% 9.8%
E-Commerce Sales (1,000s) $ 1,630,000 $ 1,700,000 -4.1% 21.8% 34.0%
Net Income (1,000’s) $ 1,086,000 $ 1,283,000 -15.4% -0.5% 4.2%
Diluted EPS $ 2.47 $ 2.89 -14.5% 2.4% 6.0%
Warehouse Clubs 527 512 2.9% 4.8% 4.8%
Club Members (1,000’s) 56,000 53,500 4.7% 5.5%
Membership Renewals 87.0% 87.0%
Store Sq Ft (1,000s) 75,200 72,700 3.4% 5.4%
Employees 142,000 137,000 3.6% 6.1% 4.7%

Costco - Compound Annual Growth Rates



Fiscal Year Net Sales by Category (as % of Total)
2009 2008 2007
Sundries 23.0% 22.0% 23.0%
Hardlines 19.0% 19.0% 21.0%
Food 21.0% 20.0% 19.0%
Softlines 10.0% 10.0% 11.0%
Fresh Food 12.0% 12.0% 12.0%
Ancillary & Other 15.0% 17.0% 14.0%

Costco - 2009 Net Sales by Category

Sundries (includes candy, snack foods, tobacco, alcoholic and nonalcoholic beverages and cleaning and institutional supplies)

Hardlines (includes major appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, furniture, and automotive supplies)

Food (includes dry and institutionally packaged foods)

Softlines (includes apparel, domestics, jewelry, housewares, media, home furnishings, cameras and small appliances)

Fresh Food (includes meat, bakery, deli and produce)

Ancillary and Other (includes gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel)


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