Costco $COST’s online sales soared in its most recent quarter and, surprisingly, it has gold bars and silver coins to thank.
The company reported that its e-commerce sales rose 18% in its second quarter, led by gold and silver
Costco $COST’s online sales soared in its most recent quarter and, surprisingly, it has gold bars and silver coins to thank.
The membership warehouse club chain’s e-commerce sales were up over 18% in the 12 weeks ending Feb. 18, according to its latest quarterly earnings report. In comparison, the company’s total sales were only up 6% in the same period.
“E-commerce showed strength in several areas led by sales of gold, and very recently silver,” Costco’s chief financial officer Richard Galanti, who is retiring this month, told investors on a call Thursday evening.
The news comes as gold prices reached an all-time high this week. The company started selling $2,000 gold bars on its website in September and recently started hawking 25-count tubes of one-ounce silver coins for $675.
The company did not disclose how much gold and silver was sold this most recent quarter. However, in its previous quarter the company reportedly sold $100 million worth of gold.
Despite this, the retailer still missed Wall Street expectations. The company’s total revenue was up about 6% year-over-year to $58.4 billion in its second quarter, narrowly missing analysts expectations of $59.2 billion, according to FactSet.
Costco’s stock slid 4% during after-hours trading on Thursday to about $754.
Galanti also noted that the company recently replaced its $1.50 churro from its food court with a 5.5 ounce chocolate chip cookie that goes for $2.49. It also added a $6.99 turkey sandwich to its menu.
He also teased that the retailer is bringing its made-in-store sushi to two more locations in the U.S. Currently, Costco-made sushi, which is popular in Asia, is only available in the U.S. at the company’s Issaquah, Washington location.
Costco’s net income rose 19% in the 12 weeks ending Feb. 18 to nearly $1.7 billion from about $1.5 billion in the same period the prior year.
The company’s net sales in the quarter jumped 6% to $57 billion and revenue generated from its membership fees grew 8% to $1.1 billion.
Its diluted earnings per share came to $3.92, above Wall Street expectations of $3.63, according to a consensus estimate from analysts surveyed by FactSet.
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