Costco Wholesale Corporation (COST)
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Monthly Sales Update November 2022

Nov 30, 2022

Josh Dahmen
AVP of Finance and Investor Relations, Costco Wholesale

Hello, and thank you for calling Costco Wholesale Corporation. I'm Josh Dahmen, AVP of Finance and Investor Relations, and I will review our sales results for the four-week retail month of November, which started on Monday, October 31st and ended on Sunday, November 27th. This period is compared to the four weeks that began last year on Monday, November 1st and ended on Sunday, November 28th. 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. As reported in our release, net sales for November came in at $19.17 billion, an increase of 5.7% from $18.13 billion last year. Comparable sales were as follows. On a reported basis in the U.S. for the four weeks, 6.0%. For the 12 weeks, 9.3%. 13 weeks, 8.8%. In Canada for the four weeks, 1.0%. 12 weeks, 2.4%. 13 weeks, 2.5%. Other international for the four weeks, -1.0%. 12 weeks, -3.1%. 13 weeks, -2.7%. Total company for the four weeks, 4.3%.

12 weeks, 6.6%. 13 weeks, 6.4%. E-commerce for the four weeks, -10.1%. 12 weeks, -3.7%. 13 weeks, -4.4%. Comparable sales, excluding the impact from changes in gasoline prices and foreign exchange were as follows. In the U.S. for the four weeks, 4.6%. 12 weeks, 6.5%. 13 weeks, 6.3%. In Canada for the four weeks, 6.6%. 12 weeks, 8.3%. 13 weeks, 8.4%. Other international for the four weeks, 8.3%. 12 weeks, 9.1%. 13 weeks, 9.1%. For total company, four weeks, 5.3%. 12 weeks, 7.1%. 13 weeks, 6.9%.

For e-commerce, four weeks, -8.9%. 12 weeks, -2.0%. 13 weeks, -2.8%. Our comp traffic or frequency for November was up 3.4% worldwide and 2.4% 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 7%, other international by approximately 11%, and total company by approximately 2.5%. Gasoline price inflation positively impacted total reported comp sales by approximately 1.5%. The average worldwide selling price per gallon was 12.5% higher versus last year. Worldwide, the average transaction was up about 1%, which included the negative impact from FX and the benefit from gasoline inflation.

In terms of regional and merchandising and categories, the general highlights were as follows. US regions with the strongest comparable sales were the Midwest, Northwest, and San Diego. Other non-local currencies, we saw the strongest results in Spain, U.K., Australia, and Mexico. Inflation in food and sundries was consistent with October, while inflation for fresh was slightly higher year-over-year when compared to October. Moving to merchandise highlights, the following comparable sales results by category for the month exclude the negative impact from foreign exchange. Food and sundries were positive in the low double digits. Cooler sundries and food were the strongest departments. Fresh foods were up mid-single digits. Better performing departments included bakery and produce. Non-foods decreased low single digits. Better performing departments included tires, sporting goods, toys and seasonal, and automotive. Underperforming departments were majors, primarily consumer electronics, jewelry, and hardware. Ancillary business sales were up mid-teens.

Gas and food court were the top performers. Looking ahead, the December reporting period will include the five weeks beginning November 28th and ending January 1st, compared to the five weeks beginning November 29th and ending January 2nd, 2022. December sales will be announced Thursday, January 5th at 1:15 P.M. Pacific Time. If you have any questions regarding our November sales results or any other investor relations questions, please call Bob Nelson at 425-313-8255, David Sherwood at 425-313-8239, or myself, Josh Dahmen at 425-313-8254. This recording will be available until 5:00 P.M. Pacific Time Wednesday, December 7th. Thanks for calling Costco Wholesale Corporation and have a great day.

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