Christopher S. Nelson 
When Costco opened its first Australian store in 2009, few would have believed that the American-style large-format supermarket chain would carry diamonds and jewelry to the meat and veg shelves, let alone the fact that they would become a major product line.
However, a decade later, the 13-store chain reported and increased its 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.
The results are recorded on August 31 of each year.
Patrick Noone, Managing Director of Costco Australia, said the australian that the company had performed well throughout the COVID-19 pandemic and resulting travel restrictions, and that Costco’s jewelry category was increasing sales when the company was not being considered as a “typical” buying choice for a diamond engagement ring.
“Jewelry has worked exceptionally well for us this year, I think people are home and getting married, have babies and a lot of diamonds are selling,” Noone said in the australian article titled, Diamonds are Costco’s best friend as sales in Australia hit $ 3 billion.
“The diamonds have done well, we sell gold, and that also surprised us a bit in terms of good sales.
“I think it’s mainly we get traction with the quality of the products, we see $ 10,000 diamond rings being sold for weddings, $ 15,000 earrings and things like that and when. people compare the quality in the market and the savings it makes has proven to be popular, ”Noone said.
The trend is not limited to Australia. Strong jewelry sales helped boost Costco’s fourth-quarter international e-commerce revenue by nearly 9%, according to Richard Galanti, chief financial officer.
On December 9, on an earnings conference call – a conference call between the management of a public company, analysts, investors and the media to discuss the company’s financial results over a specific period of time – Galanti told attendees that jewelry was one of Costco’s strongest departments with a 20 percent jump in total revenue to $ 1.67 billion for the quarter.
the Motley fool The financial website reported that Galanti said, “We actually sold a few rings in the range of $ 100,000.”
“In terms of e-commerce sales during the quarter, excluding FX [foreign exchange] was up 13.3 percent year over year, and that’s, of course, on top of an increase of over 86 percent from a year ago in the first quarter. The strongest department in terms of percentages year includes jewelry, tires, and home furnishings.
During a profit call in March 2020, Galanti said, “We recently sold another large-carat high-value diamond for just over $ 600,000,” while in May 2019 he claimed that A customer had bought a diamond ring for $ 400,000 at the supermarket.
Costco would however be the fourth largest jewelry and watch retailer in North America after Signet, Walmart and Tiffany; the company’s jewelry and watchmaking departments have not been without controversy and lawsuits.
In 2010, Swiss watch brand Omega began, what would turn out to be a long legal battle to stop Costco from stocking and selling its watches at massive discounts – up to a third less than US retail.
While this case was ongoing – it ultimately took five years – Tiffany & Co., the iconic American jewelry brand, took legal action to prevent Costco from selling what it described as diamond engagement rings. counterfeits bearing the name of the luxury retailer.
The case lasted for eight years.
COSTCO’s jewelry industry LEGAL Battles: 2010 – 2021
| 2010 | CAN |
Massive discounts on Swiss watches revealed Read more “ |
| 2013 | FEB |
Tiffany & Co sues supermarket chain Tiffany & Co is taking legal action to stop America’s largest chain of warehouse clubs from selling what it describes as counterfeit diamond engagement rings bearing the luxury retailer’s name. Read more “ |
| TUE |
Leaked email could affect Tiffany affair The email was reportedly sent to all Costco employees by CEO Craig Jelinek, saying he was disappointed that a friendly settlement had not been reached. Instead, the dispute plays out in the form of a legal action and a counter action in the courts. Read more “ |
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| APR |
Tiffany vs. Costco: 3rd inning She alleges that Costco used the “Tiffany” mark alone to describe two multi-thousand dollar engagement rings, the styles of which reproduced a ring with an actual “Tiffany® setting”. Read more “ |
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| 2014 | JAN |
The battle of Tiffany and Costco continues Attempts by Tiffany & Co to dismiss Costco’s counterclaim that “tiffany tuning” is an umbrella term are dismissed in a US federal court. Read more “ |
| 2015 |
JAN |
Costco gets approval to sell Swiss watches at a discount This decision is the latest in a long-standing legal battle between Costco and Omega, a subsidiary of the Swatch Group. Read more “ |
| NOV |
Tiffany & Co claims victory in Costco brand battle Read more “ |
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| 2016 | OCT |
Tiffany & Co receives millions in Costco dispute Costco is ordered to pay the jewelry company US $ 13.75 million (AU $ 18.1 million) after it is discovered that it is illegally using the term “Tiffany” to sell engagement rings. Read more “ |
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2017 |
AOT |
Tiffany & Co’s long-running Costco dispute reaches the finish line US District Judge Laura Taylor Swain’s ruling says court “holds Costco liable for trademark infringement and infringement with respect to engagement rings sold under certain brands that refer to the Tiffany brand.” “As a stand-alone term”. Read more “ |
| 2020 |
AOT |
US court overturns judgment in Tiffany & Co. infringement case The dispute – which has been pending in U.S. courts for more than seven years – involves a collection of six-prong diamond engagement rings sold by Costco with the descriptor “Tiffany” on labels and in-store signage. Read more “ |
