Jewelry sales in the U.S. experienced a 1.6% decline in September, as consumers bought fewer items yet increased their average spending per piece by about 5%, notes diamond analyst Edhan Golan.
Golan also pointed out a significant adjustment in inventory practices, with retailers trimming stock levels after a prolonged period of accumulation. Revenue from natural diamond jewelry saw a 3% year-over-year decline, even with a 2.5% rise in average spending per item. In contrast, lab-grown jewelry sales showed a 3.5% revenue increase, despite a notable 15% reduction in average price.
Total US Jewelry Sales YoY
Decline in Finished Jewelry Sales
In September, finished jewelry sales experienced a downturn, with revenue decreasing for the first time since January’s notable 5% year-over-year drop. Unit sales fell by 6.5% across most categories, with tennis bracelets as a standout, showing an 8.5% increase in demand. After August’s positive performance, gold jewelry also saw a 1.7% decline in sales, though average spending per item increased to $1,432.
Drop in Natural Diamond Jewelry Revenue
Sales of natural diamond jewelry fell by 5.5% in September, with earrings experiencing the steepest drop at 21% in revenue and 8% in units sold. Despite these declines, the average spend per unit rose by 1.1%, a trend reflecting higher per-item spending across categories to balance out unit declines, according to Golan.
Continued Growth in Lab-Grown Diamond Jewelry Sales
Finished lab-grown diamond (LGD) jewelry posted a revenue jump of 23% and a 33% increase in unit sales. However, the average price fell by 7% to $1,985. Rings and earrings dominated, together accounting for 82% of LGD jewelry revenue, with engagement rings leading in popularity, priced at an accessible average of $2,900.
LGD-Set Finished Jewelry Revenue
September Sees Drop in Loose Diamond Sales
Revenue from loose diamonds declined overall in September, driven by reduced sales of loose lab-grown diamonds, while natural diamonds showed some fluctuation in revenue, according to the piece.
US Loose Natural Diamond Sales Trend
Natural Diamond Sales Show Fluctuating Trends
Revenue from loose natural diamonds showed fluctuations, with a dip in June, a rise in July, a decline in August, and then a 2% uptick in September. The average spend per diamond rose by 8% to $10,515, with the average diamond size increasing to 1.41 carats. This fluctuation highlights consumer willingness to invest in larger diamonds.
LGD Market Share Experiences a Decline
Despite an increase in unit sales, revenue from loose lab-grown diamonds fell by 14.5%. Although unit sales have risen by 6% year-to-date, overall revenue has dropped by 7%. The lab-grown market continues to face rapid price drops that outpace unit sales growth, posing potential risks.
Loose Lab-Grown Diamond Inventory & Sales
