Costco Wholesale Corporation (COST)
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Monthly Sales Update January 2025

Feb 5, 2025

Josh Dahmen
AVP of Finance and Investor Relations, Costco Wholesale Corporation

Hello. I'm Josh Dahmen, AVP of Finance and Investor Relations, and I will review our sales results for the four-week retail month of January, which started on Monday, January 6th, and ended on Sunday, February 2nd. This period is compared to the four weeks that began last year on Monday, January 8th, and ended on Sunday, February 4th. This call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve 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 in 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. 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 US GAAP. As reported in our release, net sales for the month came in at $19.51 billion, an increase of 9.2% from $17.87 billion last year. Reported comparable sales for the month were as follows: in the U.S., 9.2%; Canada, 5.7%; other international, 1.1%; total company, 7.5%; and e-com, 13.6%. Comparable sales for the month, excluding the impacts from changes in gasoline prices and foreign exchange, were as follows: in the US, 9.2%; Canada, 12.3%; other international, 10.0%; total company, 9.8%; and e-com, 15.2%.

Our comp traffic or frequency for the month was up 7.1% worldwide and 7.1% in the U.S. Foreign currencies year-over-year relative to the U.S. dollar negatively impacted total and comparable sales as follows: Canada by approximately negative 7.6%, other international by approximately negative 9.1%, and total company by approximately negative 2.4%. Gas price inflation positively impacted total reported comp sales by approximately 0.1%. The average worldwide selling price per gallon was up approximately 1.2% versus last year. Worldwide, the average transaction was up about 0.4%, which includes the impacts from gas inflation and FX. In terms of regional and merchandising categories, the general highlights were as follows: U.S. regions with the strongest comparable sales were the Midwest, Northwest, and San Diego. Other international and local currencies, we saw the strongest results in Korea, Mexico, and Australia.

Moving to merchandise highlights, the following comparable sales results by category for the month exclude the impact of foreign exchange. Food and Sundries were positive high single digits. Better performing departments included Cooler, Candy, and Frozen Foods. Fresh Foods were up low double digits. Better performing departments included Meat and Produce. Non-Foods were positive low double digits. Better performing departments included gift cards, toys and seasonal, and jewelry. Ancillary business sales were up mid-single digits. Pharmacy, Optical, and food court were the top performers. Looking ahead, the February reporting period will include the four weeks beginning February 3rd and ending March 2nd, compared to the four weeks beginning February 5th and ending March 3rd, 2024. February sales will be announced in conjunction with our Q2 quarterly results on Thursday, March 6th, at 1:15 P.M. Pacific Time.

If you have any investor relations questions, please call David Sherwood at 425-313-8239, Andrew Yoon at 425-313-6305, or me at 425-313-8254. This recording will be available until 4:00 P.M. Pacific Time, Wednesday, February 12th.

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