US jewelry sales were flat in August after posting gains in July. According to Tenoris’ most recent data, consumers purchased more items in August but spent 1% less per item than in August 2023. In the last few months, retailers’ inventories have been swelling, a typical sign of brewing problems. This is most notable in lab grown jewelry and should serve as a warning sign.
Jewelry retailers recorded year over year revenue increases in only four months so far in 2024.
Natural diamond jewelry sales – finished and set in-store – declined 3% year over year, coinciding with a 3.6% decline in average expenditure per item. Lab-grown set and finished jewelry increased 10% despite a 16.7% drop in average price.
Total US Jewelry Sales YoY
Finished Jewelry Revenue Increased 2.3%
Modest increases in the number of jewelry items purchased (1.3%) and average spending per item (1%) resulted in a 2.3% increase in jewelry retailers’ revenue in August.
Gold jewelry did especially well, with revenue up 5% year over year and average retail price growing 3% to $1,403.
Rings remain the leading jewelry category by units sold, with fashion rings representing 10% of all finished jewelry items sold. This is a 3.4% increase from a year ago. Fashion rings were the bestseller by value, generating 12.5% of revenue.
Natural Diamond Jewelry Down 2%
The improved sales of July were mostly gone in August. Natural diamond jewelry unit sales inched up 1%, but revenue from those sales slipped 2%. Average revenue per item declined nearly 3% to $1,990.
In the first eight months of the year, finished jewelry set with natural diamonds were flat, although average expenditure rose 2.4% during the period.
White gold bands retailing in the $1,000-$1,500 price range did exceptionally well, while unit sales of low-cost fashion rings set with pointers soared 45% year over year.
Engagement Rings Lead Finished LGD Jewelry Sales
Finished jewelry set with lab-grown diamonds posted a 35% jump in revenue in August. The average spend on these items was $2,018, down 8.5% year over year.
Engagement rings were the top-selling LGD-set item in August, nearly 19% of units sold. The revenue they generated was up 30% from a year ago. One of its main appeals is its price, about $3,000 per unit.
LGD-Set Finished Jewelry Revenue
Loose Diamond Sales Shrank, Leading to an Inventory Build Up
The abrupt and surprising rise in July was short-lived. Consumer demand in August, while improving from July, was not as positive year over year.
The stark changes in demand are a concerning trend for the diamond industry at large. One of the areas impacted by these swings is increased inventories. This is notably an issue for lab-grown diamonds.
Natural Diamonds: Not A Rebound
Some optimism was noted after retailers’ sales of loose natural diamonds posted a rise in July. Sales were up both year over year and month over month, signaling a possible change in direction. Consumer demand in August ruined those hopes as sales headed south.
Year over year, sales fell 7% by value and number of units sold. This indicates that consumers purchased less engagement rings and bespoke jewelry items set with natural diamonds.
Further, in the first eight months of the year sales by value and units fell 6% and 19%, respectively.
However, not all is gloomy. First, consumers tend to spend more per item than they did in prior years, a trend we noted in the past. The primary driver is gravitation towards larger diamond. In August, they averaged 1.40 carats, up from 1.31 the year before.
Another ray of light is the improved sales on a month-over-month basis. Retailers’ revenue from loose naturals jumped 8.5% from July. The number of units they sold increased 4% month over month.
Items in inventory also increased. However, that was in line with the rise in sales.
US Loose Natural Diamonds Sales Trend
Lab-Grown Diamonds Face Inventory Build Up
Loose lab-grown diamonds sales trajectory remains fairly steady. Unit sales keep increasing, average spending keeps declining, and revenue keeps fluctuating. In August that respectively meant +14.6%, -22%, and -10% year over year.
Year to date, revenue from selling loose lab-grown diamonds declined 5%, while unit sales increased 4%.
There are two trends worth noting in this context. The first is a trend of moderation. The decline in price is slowly moderating, as is the rise in unit sales. This is a sign of the maturation of consumer demand, but may also reflect a wider shift in consumer perception of lab grown. For example, ‘we’re happy to buy this, but we however expect prices to be lower.’
This is something worth paying attention to if you are operating in these spheres.
The other trend is a serious build up in retailers’ inventory. This is an ongoing issue in the midstream, but is now very present among US retailers as well.
Since January, the number of lab-grown diamonds held in inventory by retailers leaped 53%, while unit sales increased just 18%.
As retailers are considerably better at managing their inventories than they used to be in the past, it is reasonable to expect that they will decrease their purchases from vendors pretty soon. The drop will be painful, especially in light of the typical response to such purchase reductions, namely quick price declines. Added on top of the current price decline trend, this might prove painful and harmful.
Loose Lab-Grown Diamond Inventory & Sales
The above high-level figures of the US jewelry market and inventory data are just the tip of US jewelry market activity we cover. Tenoris has more detailed data that can help improve your business through a better understanding of the US jewelry market. Contact us for a demo.
About Tenoris
Tenoris collects retail sales and inventory 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.
Tenoris can help improve your business through a better understanding of the US jewelry market. Contact us to discover how our reports provide comprehensive insights of the US jewelry market and how you can gain access to this data.
