Columnists

On Data: What We Know About Jewelry Sales So Far This Year

ColumnistsAug 10, 2022

On Data: What We Know About Jewelry Sales So Far This Year

Sherry Smith digs into year-to-date data on lab-grown vs. natural diamonds, the performance of colored gemstone jewelry, and more.

2021_Sherry Smith.jpg
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. She can be reached at sherry@edgeretailacademy.com.
In a recent note cited in this Bloomberg article, economists Yelena Shulyatyeva and Andrew Husby wrote: “The June retail sales data implies there’s still enough momentum for the U.S. economy to grow during the rest of the year as consumers find ways to cope with surging inflation, whether by dipping into savings or switching jobs.” 

So, what does our data show about sales momentum in jewelry? Let’s take a look at the numbers and see.  

Year-to-date numbers for January through July show independent jewelers up 5.8 percent in gross sales when compared with the same period in 2021. 

It is worth considering the extent to which increasing prices accounted for that growth, especially in light of year-to-date unit performance. 

Number of units sold is down 4.5 percent, while the average retail sale has climbed 10.7 percent. 

Overall gross margin continues to increase year-over-year, driving a strong increase of 8.1 percent in gross profit dollars. The better margins retailers make on lab-grown diamonds might be a factor in that increase. 

Now, let’s break it down by category, starting with diamonds.

In July, gross sales of loose diamonds (natural and lab-grown) declined a whopping 22 percent while units sold dropped 20 percent. The average retail sale was down as well. 

It may be premature to signal a shift from natural to lab-grown, but the data comparisons bear watching. 

 Related stories will be right here … 

Diamond semi-mounts and diamond engagement rings also saw a decline in gross sales in July, 18 percent and 16 percent, respectively, likely reflecting a decrease in foot traffic into stores. 

With respect to lab-grown diamonds specifically, our year-to-date data (January through June; data on lab-grown for July was not yet available) shows lab-grown loose is now 7 percent of total retail loose sales, an increase from 5.3 percent over the same period in 2021.

Lab-grown loose increased 46 percent in gross sales when compared with the same year-to-date period in 2021 and units sold grew 42 percent despite the likelihood of more challenging foot traffic into stores. 

We’ve heard lots of questions about the average retail sale of lab-grown loose diamonds. Our year-to-date data (again, through June) of the independent channel shows the overall average retail sale grew by 6 percent.

When we delve into the data, it shows there were decreases in average retail sale in many sizes. However, larger lab-grown diamonds showed significant increases in most of the key performance indicators.

The 3.25- to 3.50-carat range showed a 194 percent increase in gross sales, a 114 percent increase in units sold, and a 25 percent increase in average retail sale, suggesting some customers might be trading up in size from smaller natural diamonds. 

The 4.5- to 5-carat range recorded a spike of 582 percent in gross sales, 414 percent in units sold, and 33 percent in average retail sale, and the 5.5- to 6-carat range showed a 78 percent increase in gross sales, a 67 percent increase in units sold, and a 7 percent increase in average retail sale. 

The data for lab-grown diamonds 6 carats and above show increase in gross sales and units sold as well as in the average retail sale.

I should also note that smaller lab-grown loose (under 0.60 carats) also grew in average retail sale.

It was the 0.60-carat to 3.25-carat range that showed decreases in the average retail sale, with declines ranging from 5 percent to 21 percent.

As sales for lab-grown loose continue to grow, so do inventory levels, which show a 109 percent increase in cost and a 79 percent increase in units in our year-to-date data.

Overall gross margin for lab-grown loose comes in at a very healthy 62 percent, up from 60 in the previous year-to-date data.
Now I’ll move on to color. 

Although colored stone and pearl jewelry only make up about 8 percent of annual jewelry sales, a few categories showed slight increases this July. 

Colored stone necklaces showed a 7 percent increase in gross sales and a 20 percent increase in average retail sale but an 11 percent decline in units sold, likely reflecting the aforementioned decrease in foot traffic into retail stores. 

Colored stone pendants showed a 4.1 percent increase in gross sales and a 24 percent increase in average retail sale but, again, a 16 percent decline in units sold. 

Pearl bracelets showed a 21 percent increase in gross sales, a 22 percent increase in average retail sale, and were flat in units sold.

Watches showed a 1.7 percent increase in gross sales and a 19 percent increase in average retail sale but a double-digit decline in units sold at 14 percent.

Precious metal jewelry without stones declined 7 percent in gross sales and 12 percent in units sold but increased 6 percent in average retail sale. 

Precious metal bracelets were the one standout, recording an 11 percent increase in gross sales, a 13 percent increase in average retail sale, and only a slight decline of 1.3 percent in units sold.

All told, growth in overall sales reflects a healthy sales environment for retailers, although a decline in unit sales might signal a marked decline in foot traffic. In addition, year-to-date growth might have some price increases built in, so that is worth watching as prices stabilize. 

Gross margin improvements might reflect retailers taking some extra profit on older owned inventory, as well as increased sales of lab-grown diamonds, as mentioned above. 

The performance of natural diamonds and semi-mounts may reflect the assumed declines in foot traffic and the continued momentum of lab-grown diamond sales, which showed strength in larger sizes and stones under 0.60 carats.

Sherry Smithis director of business development for data and consulting company The Edge Retail Academy.

The Latest

Timex ReWound video screenshot
WatchesSep 21, 2023
Timex Wants Your Old Watch

The company just rolled out “Timex Rewound,” a new takeback and resale program.

GIA logo
GradingSep 21, 2023
Retailers Warned About Fraudulent Email Purportedly From GIA

The lab confirmed it did not send the message.

Reginald Brack
AuctionsSep 21, 2023
Hindman Appoints New SVP, Director of Jewelry and Watches

Reginald Brack has worked at StockX and Christie’s.

BroughtToYou_Image_R02_V02_LK-01.jpg
Brought to you by
Top 5 Ways to Promote Safety and Security Awareness Among Your Staff

Awareness is essential to proactive protection. Learn how to promote and maintain safety and security awareness in your business.

Natural Diamond Council brand ambassador Lily James
SourcingSep 21, 2023
Natural Diamond Council’s Latest Campaign With Lily James Is Here

The second installment of “To Treasure Now and Forever” is intended to emphasize diamonds’ versatility.

Weekly QuizSep 15, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
The Artistry Ltd. 2024 catalog cover
MajorsSep 21, 2023
Artistry’s 2024 Catalog Has Shipped

It features colored gemstone, pearl, diamond, gold, and sterling silver jewelry styles.

Stock image of diamonds
SourcingSep 20, 2023
Natural Diamond Outlook: Indian Diamantaires Navigating Multiple Storms

Economic slowdowns, geopolitical tensions, and the rising popularity of lab-grown diamonds are clouding the outlook for mined diamonds.

Dialog Solutions
Brought to you by
A Conversation with Dialog Solutions

Do you always want the right diamonds at the right price in your store? Introducing Dialog, the world’s first diamond subscription service.

Chemical vapor deposition reactors
Lab-GrownSep 20, 2023
Lab-Grown Diamond Outlook: Price Declines Aren’t a Deterrent

Some Indian manufacturers think the potential in this young, evolving market outweighs current price concerns.

The new Surat Diamond Bourse
SourcingSep 20, 2023
New Surat Diamond Bourse To Be World’s Largest Office Complex

The massive space spans 7.1 million square feet with more than 4,000 offices and 131 elevators.

Sahyog entrance
Policies & IssuesSep 20, 2023
Creating a Brighter Future for the Differently Abled

GIA is among the supporters of a new school building for children with special needs.

Online holiday season shopping
SurveysSep 20, 2023
Why Bain and Deloitte Think Sales Will Grow This Holiday Season

From holiday spending to inflation’s impact, here’s what analysts are forecasting for the season.

Tiffany & Co. X Rimowa collaboration suitcase and jewelry boxes
MajorsSep 20, 2023
Tiffany Collabs With Fellow LVMH-Owned Rimowa

The jeweler and luxury luggage company have teamed up on jewelry cases and a suitcase.

Navneet Gems and Minerals portrait-cut ruby
GradingSep 20, 2023
Navneet Gems Introduces Portrait-Cut Rubies

The geometric collection is on view now at the Jewellery & Gem World Hong Kong Show.

Bleu Royal diamond
AuctionsSep 19, 2023
‘Bleu Royal’ Diamond to Fetch $35M-$50M at Auction

The 17.61-carat stone leads Christie’s “Magnificent Jewels” sale in Geneva this November.

Surveillance footage of bear spray robbery
CrimeSep 19, 2023
Man Sentenced to 6 Years in Prison Following Bear Spray Robbery

The suspect used bear spray to subdue employees and bystanders then stole $800,000 worth of jewelry.

Fuli Gemstones Fuli Cut
GradingSep 19, 2023
Fuli Gemstones Unveils New Peridot Cut

The ‘Fuli Cut’ is based on an antique cushion.

Erlend Bore discovers ancient jewelry
MajorsSep 19, 2023
Norwegian Man Uncovers Ancient Jewels with Metal Detector

The jewels, including gold rings and pendants, are said to be from 500 A.D.

Stock photo of Russian diamonds from Alrosa
Policies & IssuesSep 18, 2023
Grib Diamonds Among Companies Named in Latest Round of Sanctions

Grib is the Belgium-based subsidiary of Russian company JSC AGD Diamonds, which also was sanctioned.

Greenland Ruby rubies and pink sapphires
SourcingSep 18, 2023
Greenland Ruby Update Confirms Operational Suspension, Layoffs

The company anticipates resuming exploration and mining operations and rehiring staff in 2025.

A jewelry display at the New York City Jewelry and Watch Show
Events & AwardsSep 18, 2023
New York City Jewelry & Watch Show Announces 2023 Exhibitors

The antique and vintage jewelry and watch selling event is scheduled for Oct. 26-29.

Sotheby’s For the Boys: A Jewelry Exhibition men’s jewelry sale
AuctionsSep 15, 2023
Men’s Jewelry Takes the Spotlight in Sotheby’s Selling Exhibition

Frank Everett curated “For the Boys: A Jewelry Exhibition,” opening in New York City in September.

De Beers Mic Drop Seize the Day ad
SourcingSep 15, 2023
‘A Diamond Is Forever’ Is Back Again, Backed by $20M

De Beers is putting the emphasis on natural diamonds in Q4 and ending Lightbox’s lab-grown diamond engagement ring test run.

Lindsey Scoggins transformable tourmaline, diamond, and rose gold flower earrings
TrendsSep 15, 2023
Piece of the Week: Lindsey Scoggins’ Transformable Earrings

The brand-new style can be worn three ways.

A Gucci purse and a YSL purse
TechnologySep 14, 2023
EBay Is Diving Deeper Into the Pre-Owned Pool

The tech company is launching a consignment service for sellers of luxury fashion goods, starting with handbags.

Kendra Scott at Target rendering
MajorsSep 14, 2023
Kendra Scott Heads to Target

With prices starting at $15, the Kendra Scott at Target collection launches next month.

JCK Industry Fund
Policies & IssuesSep 14, 2023
The JCK Industry Fund Is Accepting 2024 Grant Applications

The fund provides grants to organizations that better the jewelry industry.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy

Additionally, paste this code immediately after the opening  tag: