In a recent analysis published by trend analytics company Tenoris, industry analyst Edahn Golan analyzes jewelry sales in the US in September 2023, and year-to-date. The analysis reveals a year-over-year decline in September, with an 8.6% drop in value and a 3.8% decrease in unit sales. The average retail price fell by 1.7% to $1,677.
This decline contributed to an 8.1% year-to-date decrease in sales across various jewelry categories. The fine jewelry market displayed a consistent year-over-year trend, with a 4.1% decline in unit sales and a 5.3% decrease in retail sales value from May to September.
Fashion jewelry experienced a 3.6% decline in units but had a 0.9% increase in average transaction price. Bridal jewelry, excluding loose diamonds, saw a 4.8% decline in units and a 17% drop in value, with a 14% decrease in average transaction price.
Natural diamond sales decreased by 6.4% in September, with gross margins at 48.4%. In contrast, lab-grown diamond sales increased by 64.4% in units and 47.3% in retail sales value, with a retail margin of 57.8%. However, US specialty jewelers show limited adoption of lab-grown diamond jewelry lines, with only 41.7% selling stud earrings and 35% offering LGD-set engagement rings.
The lab-grown diamond sector faces challenges due to ongoing price reductions, with a 24.2% average price decline at retail. Retailers’ gross margins reached a new high at 64.7%, while unit sales growth outpaces revenue growth.
In September, natural diamond sales dropped by 23.2% in value year-over-year, with a 20.5% reduction in the number of stones sold. Notably, certain sizes, such as 5-carat and 1.80-1.89 carat diamonds, saw increased demand, while others like 4-carat, 6-carat, and 1.60-1.69 carat diamonds faced significant declines.
The industry’s increasing reliance on memo goods and shrinking gross margins indicate the challenges of selling natural diamonds. The speed of selling has slowed, with goods staying in inventory for an average of 19 months in September, highlighting the importance of capital efficiency.
On a positive note, the average size of sold natural diamonds increased to 1.20 carats in September, potentially driven by the demand for larger lab-grown diamonds. Encouraging the purchase of larger diamonds may boost industry revenue.
Read the full analysis here.
