Costco had to do a price check after noting a purchase of nearly $ 400,000 in one of its stores during its last quarter.
The huge price tag was attached to an item: a diamond ring.
The sale was significant for the chain, which is known for its discount prices. Currently, Costco lists almost 470 diamond rings on its website. The highest price is a solitary platinum round ring for $ 419,999. The second highest diamond ring is $ 280,000 cheaper.
It is clear that the sale put a shine on the eye of Costco CFO Richard Galanti.
During an earnings call with investors on Thursday, Galanti said the purchase helped boost sales for the quarter.
"The highlights of sales for the quarter included some major diamond buybacks, one in the $ 400,000 range and high-priced items like golf sims that sold for $ 14,000 each, which we sold during the payment period. fine, "explained Galanti on the call.
Michael Lbader, a capital research badyst at investment banking company UBS, urged Galanti on the big purchase during a question and answer session.
"Richard, how are you going to make up for the $ 400,000 diamond ring? Next year will be difficult," Lbader said.
Costco lists almost 470 diamond rings on its website. (Costco)
"Well, do you have an anniversary to come?" Galanti joked.
Lbader then joked that "I could not afford it" even if he did.
But on a serious note, Lbader then questioned whether there is something specific that makes the retailer's traffic "moderate," a trend he's been seeing in recent weeks.
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"Well, look at each time you remember me a few years ago when we saw a slight moderation in traffic and it was:" Oh, my God, this is the new normality. "And our answer then was that we do not know." replied Galanti. "What we do know is that we have many interesting things to buy in. Certainly, the different groups of money that we talked about in recent years, whether the increase in membership fees, the change of credit cards," The reform fiscal, all those things do not disappear. In fact, they grow a little each year. And, therefore, I think we believe we are in a good position to continue driving. "
On Thursday, Costco reported a third quarter tax profit of $ 906 million.
The company based in Issaquah, Washington, said it had a profit of $ 2.05 per share. Earnings, adjusted for non-recurring earnings, reached $ 1.89 per share.
Costco shares have risen 19 percent since the beginning of the year, while the Standard & Poor & # 39; s 500 index has risen 11 percent. In the last trading minutes of Thursday, the shares reached $ 241.47, an increase of 21 percent in the last 12 months.
Glbaddoor named Costco one of the best places to work in 2019 after a year off the list. The company pays employees some of the highest wages among retailers in the United States with an average hourly wage of $ 22.50.
The Associated Press contributed to this report.