Natural diamond sales fell 5.6% in April, according to Tenoris US diamond sales data. The fall was primarily caused by a 9% drop in unit sales. The decline in diamond sales is particularly troubling, considering total US jewelry sales increased 3.3% year on year.
In response to the proposed tariffs, foreign vendors rushed to transport their products to the United States before the tariffs went into effect. That, however, had no significant influence on retailer inventory. Overall inventory units increased by just 1.2%.
Finished Jewelry Bifurcation
Finished jewelry sales rose 5.7% year over year against flat unit sales. The average retail purchase price of finished jewelry increased, hitting $1,155.
One of the reasons for the increasing average consumer expenditure on jewelry is that they purchased less pieces of jewelry priced under one thousand dollars.
Over the last year, consumer demand for lower-priced finished jewelry has steadily decreased. At the same time, there is an increasing readiness to spend more on fine jewelry, specifically spending per item.
Restocking of finished jewelry was below average, despite the threat of hefty tariffs on major suppliers such as India (26% duty), the EU (20%), and Thailand (36%). Goods were imported into the US but not sold in larger numbers to retailers. As a result, completed jewelry inventory levels increased by less than 1% year on year and 0.5% from March.
Finished Natural Diamond Jewelry Sales
Finished diamond jewelry sales data for April showed a 2.7% increase in sales revenue, while the average price of goods sold increased by 6%.
Unit sales at lower price points continue to decline. Unit sales of goods priced below $1,500 decreased by more than 8%.
The level of finished diamond jewelry inventories fell 1.7% in April. Retailers are not restocking lower-cost items that are in declining demand. The number of those units in inventory declined by more than 7%.
Finished LGD Jewelry Sales are Soaring
Unit sales of LGD set finished jewelry rose 48% year over year, a phenomenal growth rate. A 7.5% drop in average price could not prevent a double-digit rise in revenue, rising 37%.
Here we do not notice a decline in sales of lower price points. Sales of items priced below $250 more than doubled, and items priced $250 to over $10,000 grew by double-digit.
Consumers are exhibiting a growing interest in this jewelry category.
Unlike other jewelry categories, retailers are fast to replenish and add to their LGD jewelry inventory. Units in inventory swelled by 35% in April, indicating that retailers expect a continued rise in demand in the near term.
Loose Diamond Sales Data
Our loose diamonds sales data shows a mixed trend in the retail market. Natural diamonds follow one trend, while lab-grown diamonds follow another. Together, they accounted for a 4.5% rise in sales revenue.
Overall loose diamond sales data show that by unit, loose LGD accounts for around 62% of sales, while natural diamonds account for more than 75% of sales revenue.
Loose Natural Diamond Sales
Loose natural diamond sales revenue declined 5.6% in April. The revenue decline was caused by a 9% decrease in unit sales. This time, the 3.6% rise in average retail price was insufficient to keep revenue above the red line.
After a period in which buyers preferred larger diamonds, the average size of loose diamonds sold has decreased. The most popular item is 1.00-1.04 carat H color, SI clarity item priced between $2500-5000.
An end-of-month inventory snapshot showed that units in inventory increased by only 1.5% as retailers maintained their buying costs constant.
Loose Lab-Grown Unit Sales Up 15%
Diamond sales data shows that the average retail price of loose LGD fell 19% year-over-year. The 15% rise in unit sales was not enough to keep retail revenue positive.
Part of the issue is a rise in demand for smaller LGDs priced below $500. Their sales nearly doubled in the past year. At the same time, sales of LGDs in the $2,500-7,500 price ranges declined. This price range represented the growth sweet spot.
Retailers stocked up on smaller goods under half a carat. Overall, loose LGD units in inventory rose 16% year over year.
Takeaways
The market appears to be in a holding pattern, waiting to see how the US economy evolves. Economic swings and the threat of high tariffs are influencing customers’ and retailers’ inclination to buy. If we can learn anything from our diamond sales data, it is that we are once again on shaky ground, which does not bode well for the upcoming jewelry trade fairs in Las Vegas.
Tenoris Services Update
As part of our ongoing efforts to strengthen client business and better match with altering retailer economic activity, we have improved our insights of retailer purchasing. In particular, we improved the data tools for current costs, making them significantly more granular. If you are a diamond sales data subscriber, go to the new Retailer Purchaser 2 tab. If you are not a subscriber and would like to learn more, contact us.
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.
The above high-level figures of diamond sales 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.
