Costco Wholesale Corporation (COST)
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Monthly Sales Update October 2021

Nov 3, 2021

David Sherwood
Assistant Vice President of Finance and Investor Relations, Costco Wholesale Corporation

Hello, and thank you for calling Costco Wholesale Corporation. I'm David Sherwood, AVP of Finance & Investor Relations, and I will review our sales results for the four-week retail month of October, which started on Monday, October 4, and ended on Sunday, October 31.

This period is compared to the four weeks that began last year on Monday, October 5, and ended on Sunday, November 1. 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 October came in at $16.47 billion, an increase of 19.2% from $13.82 billion last year.

Comparable sales were as follows. On a reported basis, in the U.S., the four weeks was at 17.0%. Nine weeks, 15.6%. In Canada, the four weeks was at 20.6%. Nine weeks, 17.3%. Other international, four weeks, 17.0%. Nine weeks, 14.1%. Total company, four weeks, 17.5%. Nine weeks, 15.6%. E-commerce, the four weeks was at 16.5%, and the nine weeks was at 13.2%.

Comparable sales, excluding the impacts from changes in gasoline prices and foreign exchange, were as follows. In the U.S., the 4 weeks is 11.7%. Nine weeks, 10.7%. In Canada, four weeks was at 10.0%. Nine weeks, 8.4%. Other International, four weeks, 14.7%. Nine weeks, 10.8%.

Total Company, the four weeks is 11.8%, and the nine weeks is at 10.4%. E-commerce, four weeks, 15.3%, and nine weeks, 12.1%. Our comp traffic or frequency for October was up 8.4% worldwide and 7.9% 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 7.0%.

Other international, positively by approximately 0.4%. Total company, positively by approximately 1.0%. Gasoline price inflation positively impacted total reported comp sales by approximately 4.6%.

The average selling price was 50% higher year-over-year at $3.52 per gallon this year compared to $2.35 last year. Worldwide, the average transaction for October was up 8.4%, 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 year-over-year sales increases were the Southeast, Texas, and L.A. Other international and local currencies, we saw the strongest results in the U.K., Australia, Mexico, 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 high single digits.

Candy, frozen, and deli were the strongest departments. Fresh foods were up high single digits. Better-performing departments included service deli and bakery. Non-foods were positive mid-teens. Better-performing departments included home furnishings, jewelry, domestics, and garden.

Ancillary business sales were up high forties. Gas and food court were the top performers. Looking ahead, the November reporting period will begin November 1st and end November 28, compared to the four weeks beginning November 2nd and ending November 29, 2020. November sales will be announced Wednesday, December 1 at 1:15 P.M. Pacific Time.

If you have any questions regarding our October sales results or other investor relations questions, please call Bob Nelson at 425-313-8255, Josh Dahmen at 425-313-8254, or myself, David Sherwood, at 425-313-8239. This recording will be available until 5 P.M. Pacific Time Wednesday, November 10. Thanks for calling. Have a great day.

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