Average Expenditure on Jewelry Rises 2.5% in November

US jewelry sales experienced a 2.5% increase in November, driven by a 4.6% year-over-year rise in the average expenditure per item by consumers.

This uptick in jewelry expenditure is part of a trend indicating a turnaround in US demand for fine jewelry. So far this year, sales have increased almost every month, as did consumers’ average expenditure.

The rise in expenditure has offset the decline in unit sales, which has been another notable trend over the past year.

Sales of diamond jewelry, both finished and store-set, exhibited a similar pattern, albeit with different dynamics. While revenue remained stable and unit sales fell, the average expenditure surged by 5.4%.

Additionally, the results for November may have been influenced by a shift in holiday selling days, as two days typically in November were moved to December 1-2.

Average Expenditure on Finished Jewelry Soars

Finished jewelry sales experienced a robust increase, climbing over 4% in November.

This growth was primarily driven by a 6.5% rise in consumers’ average expenditure per item. This increase in expenditure is noteworthy, especially given that many retailers typically offer discounts during the November-December shopping season.

This trend suggests that US consumers continue to harbor a deep interest in jewelry and demonstrate it with a growing willingness to invest in it.

Unusually, unit sales were down year-over-year, however this was against a strong rise in November 2023. Also, the last two days of the holiday shopping period, which fell in December, may have also influenced this trend.

The two best-selling jewelry items were chain necklaces and fashion pendants, both in the $500-600 price bracket. Hoop earrings seem to have fallen out of favor, with a near 10% decline in units sold.

Modest Demand for Finished Diamond Jewelry

A more modest development took place with finished jewelry set with natural diamonds. Total revenue increased 1.4% and unit sales of pre-set natural diamond jewelry declined nearly 5% in November.

Not surprising, the top sellers were non-bridal diamond rings, followed by diamond earrings. Consumers’ average expenditure on both these items grew 8.5% year over year.

Considering the jump in demand in October, it seems that many consumers opted for an early start in buying finished diamond jewelry, especially items in the $2,000-$2,500 price range.

Finished LGD Jewelry Sales: Average Expenditure Falls 10%

Lab-grown diamond jewelry unit sales leaped 50% in November, resulting in a 35% increase in sales.

Consumer average expenditure per unit sank 10.6% from a year ago.

The most popular price point for LGD set finished jewelry is $1,500-$2,500.

Loose Diamond Sales Declined in November

US jewelry retailers’ revenue from loose diamond sales declined during the month. Total revenue from natural and lab-grown diamonds fell more than 5%.

Natural Diamonds: An Extended Struggle

For the two years between May 2022 and April 2024, retailers’ revenue from selling loose diamonds only declined year over year. Since May of this year, sales declined in some months, but more frequently rose. This fluctuation trend is possibly a sign of consumers’ gradual return to natural diamonds.

On a year-to-date basis, sales were down 5% and average consumer expenditure was flat. More concerning for the diamond industry, sales declined year to date.

Again, we are possibly seeing the effects of the transition of two significant shopping days from November to December.

A noteworthy trend from the past year is a slow movement of demand to VS clarities from the traditional SI clarities. Along with the rise in average size, this is possibly a halo effect from lab grown.

Loose LGD Revenue Flat, Average Expenditure Sinks

Revenue from loose lab-grown diamond fell 6% despite the continued double-digit ascent in unit sales. The reason is the seemingly unstoppable decline in prices.

At the same time, retailers are continuing to increase their gross margins. In November, it crossed 70%. This is clearly in response to declining prices and an attempt to protect profits.

The decline in price is encouraging consumers to purchase larger LGDs. Currently, 2- and 3-carat are the most popular loose LGD sizes, accounting for about a third of loose LGD sales.

About Tenoris

Tenoris collects retail sales data from a broad representative sample of US jewelry retailers. Tenoris subscribers include retailers, manufacturers, miners, and financial firms. They use this data to study everything from broad market trends to price prediction, assisting them in identifying changing trends and opportunities ahead of their competitors.

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Featured photo: Mel Poole