RAPAPORT... Costco Wholesale’s jewelry department was one of its strongest segments in the fourth fiscal quarter, helping to boost e-commerce sales by 9%.
The retailer sold two rings with price tags of more than $100,000 during the period ending August 29, it said recently in an earnings call transcribed by The Motley Fool. Home furnishings, pharmacy and sporting goods also saw robust sales.
This followed sales of two other high-value diamond rings. In 2019, one consumer purchased a diamond ring in the $400,000 range, while a second bought one worth $220,000.
Although Costco carries jewelry in its stores, its higher-value items are sold through its e-commerce platform. Prices for its diamond jewelry range from $230 for a 0.08 carat, I-color, VS2-clarity stackable diamond band to $420,000 for a round brilliant, 10.03-carat, I-color, VS1-clarity solitaire set in a platinum band. The wholesaler also carries colored-diamond rings.
In total, Costco’s sales for the 16 weeks increased 18% year on year to $61.44 billion, while profit rose 20% to $1.67 billion.
Image: The $420,000 Costco diamond engagement ring. (Costco Wholesale)
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