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Costco shopper's purchase of $ 400G diamond ring gave the chain "significant" sales increase




Costco had to make a price check after listing nearly $ 400,000 at one of its stores over the last quarter.

The huge price tag was attached to one element: a diamond ring.

The sale was significant for the chain, which is known for its discounted prices. Currently, Costco lists nearly 470 diamond rings on its website. The highest price is a round platinum solitaire ring listed for $ 419,999. The second highest diamond ring is $ 280,000 cheaper.

Sales are clearly evident in Costco CFO Richard Galanti's eye.

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During an earnings call with investors on Thursday, Galanti said the purchase helped boost sales for the quarter.

"Sales highlights for the quarter included some significant diamond repurchase one in the $ 400,000 series and big-ticket items such as golf simulators that sold for $ 1[ads1]4,000 each we sold in the fine pay period," explained Galanti Conversation.

Michael Lasser, an equity research analyst for the investment bank UBS, gave Galanti the grand purchase during a Q&A session.

"Richard, how are you going to offset the $ 400,000 diamond ring? It's going to be tough next year," says Lasser.

Costco shows nearly 470 diamond rings on his website. (Costco)

" Well, do you have an anniversary coming up? "

Lasser asked if there was anything specific that caused the dealer's traffic to" moderate ", a trend he is

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"Well, look every time it reminds me a few years ago when we saw a little moderation in traffic and it was," Oh, my God, this is the new common. & # 39; And our answer was then we do not know, "answered Galanti." What we know is that we have many exciting things going on buying. We sure – the various gambling games we talked about over the past few years, whether there is fee income for the membership fee, the credit card switch, the tax reform, all this doesn't go away. They actually grow a little every year. And then I think we feel we have a good position to continue driving it. ยป

On Thursday Costco reported a third quarter financial gain of $ 906 million.

Ticker Security Last Change % Chg
COST COSTCO WHOLESALE CORPORATION 237.29 [19659026] -4.25 -1.76%

Issaquah , Washington-based company, said it had a profit of $ 2.05 per share. The result, adjusted for one-off, came to $ 1.89 per share.

Costco shares have increased 19 percent since the beginning of the year, while Standard & Poor's 500 index has climbed 11 percent. In the last few minutes of trading on Thursday, stocks hit $ 241.47, an increase of 21 percent over the past 12 months.

Glass door named Costco one of the best places to work in 2019 after a year in the sky outside the list. The company pays employees some of the highest salaries among US dealers with an average hourly wage of $ 22.50.

Associated Press contributed to this report.



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