The sales of gold and silver seem to have grown considerably

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Costco Wholesale got into precious metals sales last year with gold bars and, according to a Tuesday research note from Wells Fargo, those may have picked up quite a bit since then.
In the note, Wells Fargo equity analyst Edward Kelly wrote Costco’s sales of gold and silver “seem to have grown considerably” since then-CFO Richard Galanti announced in mid-December the retailer had “sold over $100 million of gold during the [first] quarter.”
COSTCO WILL CRACK DOWN ON NON-MEMBERS EATING AT FOOD COURTS Costco reporting it had made $100 million in gold sales, came after Galanti had previously said the 1-ounce bars were going shockingly fast when uploaded on the retailer’s website.
It launched its offering of gold bars in the fall.
More recently, the wholesale retailer delved into silver, putting tubes of 1-ounce Canada Maple Leaf Silver Coins up for sale online, as FOX Business reported last month.
COSTCO TAPS INTO SILVER COIN SALES FOLLOWING OVERNIGHT SUCCESS OF GOLD BARS The gold and silver sales are likely “a very low profit business at best” due to Costco’s pricing strategy for the metals and shipping costs, according to the note.
Ticker Security Last Change Change % COST COSTCO WHOLESALE CORP. 710.83 -7.76 -1.08% Wells Fargo pointed to a few factors as indicators of the possible “sharp uptick in momentum” since the gold bars and silver coins debuted.
Second-quarter e-commerce sales “showed strength in several areas, led by sales of gold and very recently silver,” the company said in early March.

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Gold bars were Costco Wholesale’s entry into the precious metals market last year, and a research note from Wells Fargo on Tuesday suggests that sales of those may have increased significantly since then.

Ever since then-CFO Richard Galanti revealed in mid-December that the retailer had “sold over $100 million of gold during the [first] quarter,” Wells Fargo equity analyst Edward Kelly wrote in the note that Costco’s sales of gold and silver “seem to have grown considerably.”. “.

NON-MEMBERS EATING AT FOOD COURTS WILL BE STRIPPED BY COSTCO.

After Galanti had earlier claimed that the 1-ounce bars were selling remarkably quickly after being posted on the store’s website, Costco announced that it had sold $100 million worth of gold.

In the fall, it introduced its gold bar offering. According to a story from FOX Business last month, the wholesaler has recently expanded into the silver market by offering tubes of 1-ounce Canada Maple Leaf Silver Coins for sale online.

Sales of those precious metals, according to Kelly’s research note at Wells Fargo, “may now be running at $100-200m per month, which would add almost 1 percent to total comps, slightly more to US comps, and about 3 percent to gen.”. merchandise. Revenue. ****.

COSTCO JOINS THE SILVER COIN SALES FOLLOWING GOLD BARS’ OVERNIGHT SUCCESS.

The note claims that because of Costco’s metals pricing strategy and shipping expenses, the sales of gold and silver are probably “a very low profit business at best.”.

Ticker Security Last Change Percentage COSTCO Wholesale Corp. 710 points, 77 points, -1 point, or 1.08%.

As signs of the potential “sharp uptick in momentum” since the introduction of the gold bars and silver coins, Wells Fargo identified a few variables. The research note mentioned “the increasing frequency of Reddit posts, quick online sell-outs of product, and COST’s robust monthly eComm sales” as some of these.

Early in March, the company reported that second-quarter e-commerce sales “showed strength in several areas, led by sales of gold and very recently silver.”. In the second quarter, Costco’s comparable e-commerce sales increased by 18 points 4 percent YoY.

As per the retailer’s statement, its online store “offers an extensive range of products that enhance our storage facilities.”. Typically, the in-store selection consists of approximately 4,000 items.

SELECTED FROM THE RETAILER’S VOICE ARE SOME OF COSTCO’S BEST TIPS.

The company’s total revenue in the second quarter was $58.44 billion. However, its $1.74 billion in net income was reported.

There are 875 warehouses spread across 875 locations worldwide.

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