Costco Wholesale Corporation (COST)
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Monthly Sales Update August 2021

Sep 1, 2021

Speaker 1

Hello and thank you for calling Costco Wholesale Corporation. I'm David Sherwood, AVP of Finance and Investor Relations, and I will review our sales results for the 4 week retail month of August, which started on Monday, August 2 and ended on Sunday, August 29. This period is compared to the 4 weeks that began last year on Monday, August 3 and ended on Sunday, August 30. This call will include forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements all risks and uncertainties that may cause actual events, results and or performance to differ materially from those indicated by such statements.

The risks and uncertainties include, but are not limited to, those outlined in today's call and sales release as well as other risks identified from time to time and the company's public statements and reports filed with the SEC. Forward looking statements speak only as of the date they are made, and the company does not undertake to update them except as required by law. As reported in our release, net sales for August came in at $15,750,000,000 an increase of 16.2 percent from $13,560,000,000 last year. For the 16 weeks ended of 29th. Net sales came in at $61,400,000,000 an increase of 17.4% from $52,300,000,000 last year.

For the 52 weeks ended August 29. Net sales came in at $192,100,000,000 an increase of 17.7 percent from $163,200,000,000 last year. Comparable sales were as follows. On a reported basis, in the U. S, 4 weeks, 14.7 percent 16 weeks, 14.9 percent 52 weeks, 14.8 percent In Canada, the 4 weeks was a 13.4 percent 16 weeks, 19.5 percent 52 weeks, 20.0 percent.

Other International, 4 weeks, 12.2 percent 16 weeks, 15.0 percent 52 weeks, 19.1 percent and total company, the 4 weeks was a 14.2% 16 weeks, 15.5 percent 52 weeks, 16.0 percent E Commerce, 4 weeks, 2.8 percent 16 weeks, 11.2 percent 52 weeks, 44.4%. Comparable sales, excluding impacts from changes in gasoline prices and foreign exchange, were as follows: in the U. S, the 4 weeks, 10.1 percent 16 weeks, 10.3 percent 52 weeks, 13.6 percent Canada, 4 weeks, 5.2% 16 weeks, 6.7 percent 52 weeks, 12.1 percent Other international, 4 weeks, 7.3 percent 16 weeks, 7.3 percent 52 weeks, 13.4%. Total company in the 4 weeks is a 9.1 percent 16 weeks, 9.4 percent 52 weeks, 13.4 percent In e commerce, the 4 weeks is a 1.8 percent 16 weeks, 8.9 percent 52 weeks, 42.6%. Our comp traffic or frequency for August was up 7.1% worldwide and up 7.5% in the U.

S. Foreign currencies year over year relative to the U. S. Dollar impacted total and comparable sales as follows: Canada, positively by approximately 5.4 percent other international positively by approximately 3.6% and total company positively by approximately 1.2 Gasoline price inflation positively impacted total reported comp sales by approximately 3.9%. The average selling price was 41% higher year over year at $3.39 per gallon this year compared to $2.41 last year.

Comp gas volume was up significantly relative to last year and was also positive versus 2019. Worldwide, the average transaction for August was up 6.6%, which included the positive impacts from gasoline inflation and FX. In terms of regional and merchandising categories, the general highlights were as follows. U. S.

Regions with the strongest sales increases were Texas, Southeast and L. A. Other international and local currencies, we saw the strongest results in Mexico, Korea and Taiwan. Moving to merchandise highlights, the following comparable sales results by category for the month exclude the positive impact of foreign exchange. Food and sundries were positive mid to high single digits.

Sundries and candy were the strongest departments. Fresh foods were up mid to high single digits. Better performing departments included service deli and bakery. Non foods were positive mid to high single digits. Better performing departments included housewares, sporting goods, jewelry and domestics.

Ancillary businesses were up mid-40s. Gas, Food court and pharmacy were all significant drivers. Looking ahead, the September reporting period will include the 5 weeks beginning August 30 and ending October 3 compared to the 5 weeks beginning August 31 and ending October 4, 2020. September sales will be announced Wednesday, October 6 at 1:15 p. M.

Pacific Time. Prior to September sales, we will be releasing our 4th quarter and total year fiscal 'twenty one earnings on September 23. Earnings will be announced after market close with a conference call to follow at 2 p. M. Pacific Time.

The call can be streamlined via our Investor Relations website. If you have any questions regarding our Argus sales results or any other Investor Relations questions, please call Bob Nelson at 425-313-8255, Josh Damon at 425-313-8254 or myself, David Sherwood at 425-313-8239. This recording will be available until 5 p. M. Pacific Time, Wednesday, September 8.

Thanks for calling. Have a great day.

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