CollectionsJan 29, 2025
Boucheron’s High Jewelry Takes the Form of ‘Untamed Nature’The jeweler’s latest high jewelry collection looks into the Boucheron archives to create a “living encyclopedia of high jewelry.”
ColumnistsMar 17, 2020
On Data: A Closer Look at Loose Diamonds
Sherry Smith looks at sales and gross margins on loose diamonds in her latest deep-dive into industry data.
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. She can be reached at sherry@edgeretailacademy.com.
Hello, I hope this finds you staying well, both physically and mentally, amid all the uncertainty surrounding the spread of COVID-19.
In this month’s column, we’re going to examine the performance of independent jewelers in the 12-month rolling period ended Jan. 30, and then dive into their performance in a category that’s become more challenging in recent years—loose diamonds.
Overall, jewelers showed an increase of 4.8 percent in gross sales year-over-year. This follows a strong January 2019, which had an 11 percent increase in gross sales.
Gross profit dollars were also up, climbing 4.8 percent.
The number of units sold slipped 5 percent, while gross margin held steady at 46.1 percent and the average retail sale grew 10 percent, from $304 to $335.
Meanwhile, loose diamonds showed a 2.1 percent increase in gross sales, a 2 percent increase in gross profit dollars and a 4.9 percent increase in average retail sale in the 12-month rolling period.
Of the $2 billion in total aggregated sales data from the independent channel collected by The Edge Retail Academy, the loose diamond category represents 13 percent of total revenues and 10 percent of total annual gross profit dollars.
This makes loose diamonds the single most important category for independents.
I’ve saved the best on loose diamonds for last—the gross margin. This is such a hot topic and, no doubt, I am opening Pandora’s box by mentioning it.
I must admit, it is very interesting to see retailers’ and vendors’ reactions to the actual gross margin being achieved.
Vendors tend to be surprised by how low the actual gross margin is, while retailers are surprised that retailers are getting that high of a margin. It’s all about perspective.
Let’s break down loose diamond gross margin by region: Midwest – 38.8 percent; Northeast – 32.7 percent; South – 37 percent; Southeast – 35.9 percent; and the West – 38 percent.
It’s not surprising to see the Midwest with the highest gross margin, given that the region tends to be more rural, just as it’s not a shock to see the Northeast, where it’s more densely populated and there is more competition, with the lowest.
Nonetheless, there are lots of contributing factors to the gross margin of loose diamonds: attempting to match online pricing, selling loose as a commodity, removing the emotional part of the purchase, the entry of lab-grown diamonds into the market in larger quantities, etc.
In this month’s column, we’re going to examine the performance of independent jewelers in the 12-month rolling period ended Jan. 30, and then dive into their performance in a category that’s become more challenging in recent years—loose diamonds.
Overall, jewelers showed an increase of 4.8 percent in gross sales year-over-year. This follows a strong January 2019, which had an 11 percent increase in gross sales.
Gross profit dollars were also up, climbing 4.8 percent.
The number of units sold slipped 5 percent, while gross margin held steady at 46.1 percent and the average retail sale grew 10 percent, from $304 to $335.
Meanwhile, loose diamonds showed a 2.1 percent increase in gross sales, a 2 percent increase in gross profit dollars and a 4.9 percent increase in average retail sale in the 12-month rolling period.
Of the $2 billion in total aggregated sales data from the independent channel collected by The Edge Retail Academy, the loose diamond category represents 13 percent of total revenues and 10 percent of total annual gross profit dollars.
This makes loose diamonds the single most important category for independents.
I’ve saved the best on loose diamonds for last—the gross margin. This is such a hot topic and, no doubt, I am opening Pandora’s box by mentioning it.
I must admit, it is very interesting to see retailers’ and vendors’ reactions to the actual gross margin being achieved.
Vendors tend to be surprised by how low the actual gross margin is, while retailers are surprised that retailers are getting that high of a margin. It’s all about perspective.
Let’s break down loose diamond gross margin by region: Midwest – 38.8 percent; Northeast – 32.7 percent; South – 37 percent; Southeast – 35.9 percent; and the West – 38 percent.
It’s not surprising to see the Midwest with the highest gross margin, given that the region tends to be more rural, just as it’s not a shock to see the Northeast, where it’s more densely populated and there is more competition, with the lowest.
Nonetheless, there are lots of contributing factors to the gross margin of loose diamonds: attempting to match online pricing, selling loose as a commodity, removing the emotional part of the purchase, the entry of lab-grown diamonds into the market in larger quantities, etc.
Editors' Picks
Sponsored by
In any case, it’s worth noting that most research continues to show it’s all about the experience.
After all, the purchase of a loose diamonds is, in most cases, made to mark a momentous occasion in customers’ lives that should be celebrated.
After all, the purchase of a loose diamonds is, in most cases, made to mark a momentous occasion in customers’ lives that should be celebrated.
More on Columnists
The Latest
FinancialsJan 29, 2025
LVMH Watch, Jewelry Sales End the Year DownWatch and jewelry sales slipped 3 percent in 2024, though the luxury conglomerate did see business pick up in the fourth quarter.
MajorsJan 29, 2025
Chanel Names New General Manager of Watches, Fine Jewelry for USOlivier Kessler-Gay will take over the role on March 3.
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
SurveysJan 29, 2025
Consumer Confidence Slips for Second Consecutive Month It hit a four-month low in January due to concerns about the job market, though consumers remain bullish about the stock market.
Weekly QuizJan 23, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsJan 29, 2025
Chris Ploof To Teach Mokume Gane at AJSThe jewelry designer and master metalsmith will present on the ancient Japanese metalworking technique at the Atlanta Jewelry Show in March.
SourcingJan 28, 2025
WFDB Joins Efforts to Promote Natural Diamonds With New CampaignThe “Moments” social media campaign emphasizes the emotional ties between natural diamonds and life’s special milestones.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
CollectionsJan 28, 2025
Bliss Lau Celebrates the Intricate Mosaic of Identity in New CollectionThe versatile “As We Are” collection features 14 pieces with interlocking designs allowing for 27 different looks worn around the body.
SourcingJan 28, 2025
Botswana’s First Olympic Gold Medalist Is Now a De Beers Ambassador Letsile Tebogo will help to promote natural diamonds and the good they have done for his country.
Events & AwardsJan 28, 2025
NouvelleBox Show Returns to New York CityThe showcase, in its second year, will feature more than 20 international brands at its curated event from Feb. 2-4.
Recorded WebinarsJan 28, 2025
Watch: Fine Jewelry Market Predictions for 2025 “My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
Events & AwardsJan 28, 2025
Here Is the 2025 AGTA GemFair Tucson Educational LineupThe seminar series covers topics from market trends and colored stone terminology to working with museums and growing an Instagram profile.
MajorsJan 27, 2025
Le Vian Corp. Chairman Larry LeVian, a Man of Faith and Family, Dies at 73 LeVian is remembered for his leadership in the jewelry industry and for being a selfless and compassionate person.
CrimeJan 27, 2025
New Jersey Jeweler Sentenced to 2 1/2 Years for Evading CustomsMonishkumar Kirankumar Doshi Shah pleaded guilty to evading customs on more than $13.5 million of jewelry imported into the U.S.
SourcingJan 27, 2025
Dev Shetty To Head New Auction House for Rare Colored GemsJemora Gemhouse’s inaugural auction, slated for March, will take place in Dubai and feature polished sapphires.
CollectionsJan 27, 2025
Rachel Quinn Embodies Feelings of Falling in Love in New CollectionQuinn partnered with Gemfields to create “Crazy Love,” which features Zambian emeralds and Mozambican rubies across 10 pieces.
MajorsJan 27, 2025
Arch Crown’s 2025 ‘Tag & Label’ Catalog Is Out Now The catalog is 48 pages and features more than 100 styles.
CollectionsJan 24, 2025
Piece of the Week: Ashley Zhang Jewelry’s Lunar New Year NecklaceThe one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.
SourcingJan 24, 2025
Ethical Gem Fair Heads Back to Tucson The gemstone show is slated to take place at the Scottish Rite Cathedral.
Policies & IssuesJan 24, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
CrimeJan 23, 2025
4 Men Arrested After Allegedly Plotting to Kidnap JewelerThe suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.
CrimeJan 23, 2025
Security Guard Killed in Armed Robbery at Namibian Diamond Co. Francis “Gosh” Eiseb, 58, was a senior protection officer for Namib Desert Diamonds, also known as Namdia, in Windhoek, Namibia.
SourcingJan 23, 2025
RapNet, AGTA Partner to Launch Gemstone Trading NetworkThe online diamond and jewelry marketplace has expanded, introducing a new platform dedicated to colored gemstone trading.
Events & AwardsJan 23, 2025
Plumb Club Announces Speaker Lineup for Symposium ‘25The second annual learning forum for retailers is slated for March 13 at City Winery in Pier 57 in New York City.
SourcingJan 23, 2025
Fancy Color Research Foundation Names New CEORoy Safit took over the role on Jan. 1.
Policies & IssuesJan 22, 2025
Jewelers Mutual Steps Up Aid for LA Jewelry BusinessesThe company also is matching donations made to Jewelers of America and the Diamond Council of America’s Jewelers Relief Fund.
