In 2010 Swiss watch brand Omega began, what was to become a long legal battle to stop Costco stocking and selling its watches at massive discounts – reportedly up to a third less than US retail. Stronger department in terms of year of percentages include jewellery, tyres, and home furnishings.”ĭuring a March 2020 Earnings Call, Galanti said, “We recently sold another high-value large carat diamond for a little over $US600,000", while in May 2019 he claimed a customer had purchased a $US400,000 diamond ring from the supermarket.Ĭostco is reported to be North America's fourth-largest retailer of fine jewellery and watches after Signet, Walmart and Tiffany, however the company’s jewellery and watch departments have not been without controversy and legal action. “In terms of e-commerce sales in the quarter, ex FX increased 13.3 per cent year-over-year, and that's, of course, on top of an 86 per cent plus increase a year ago in the first quarter. The Motley Fool finance website reported that Galanti said: "We actually sold a couple of rings in the $100,000 range.” On 9 December, during an Earnings Call - a conference call between the management of a public company, analysts, investors, and the media to discuss the company’s financial results during a given reporting period – Galanti told participants that jewellery was among Costco’s strongest departments with a 20 per cent jump in total revenue to $US1.67 billion for the quarter. Strong jewellery sales helped boost Costco’s internationbal Q4 e-commerce revenue by almost nine per cent, according to Richard Galanti, chief financial officer. The trend is not restricted to Australia. "I think it is mainly we are getting traction with the quality of the goods, we are seeing $10,000 diamond rings being sold for weddings, $15,000 earrings and things like that and when people compare the quality out there in the market place and the savings it has proven popular," Noone said. “Diamonds did well, we sell gold, and that surprised us a bit as well in terms of selling well. “Jewellery has done exceptionally well for us this year, I think people are at home and getting married, having babies and a lot of diamonds have been selling,” Noone said in The Australian article titled, Diamonds are Costco’s best friend as sales in Australia race to $3bn. Patrick Noone managing director Costco Australia told The Australian that the company had performed strongly throughout the COVID-19 pandemic and the resulting travel restrictions, and that Costco’s jewellery category was increasing sales in the face of the company not being considered as a ‘typical’ shopping choice for a diamond engagement rings. The results are recorded to 31 August each year. ![]() ![]() However, a decade on, the 13-store chain has reported an increase in Australian revenue from $2.59 billion in 2020 to $2.82 billion in 2021, while its profit more than doubled from $22.22 million in 2020 to $46.39 million this year. When Costco opened its first Australian store in 2009, few people would have believed that the US-style, large-format supermarket chain would offer diamonds and jewellery among the meat and vegetables aisles, let alone that they would become a major product range.
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