Kay parent Signet Jewelers slides as the “engagement gap” leads to fewer ring sales
Every kiss begins with Kay… and they went to Jared. Signet Jewelers, the self-proclaimed world’s largest diamond-jewelry seller and the parent co of brands like Kay, Jared, Zales, and Blue Nile, gave investors a not-so-shiny forecast for the year. The reason: it said fewer folks could put a ring on it. Signet, which depends on bridal jewelry for half its sales, saw its stock plunge 12% after it said sales fell 10% in the holiday quarter.
Untied knot: Signet said couples announced 2.1M engagements last year, well below the prepandemic average of 2.8M. It expects only 5% to 10% more knee-droppers this year.
“A diamond is forever”… but not for now. It’s been four years since the pandemic started, and Signet said couples get engaged on average three years after they start dating. Since IRL meetups and candlelit dinners weren’t happening mid-pandemic, Signet said jewelers are facing an “engagement gap” (it’s hard to meet your SO on “Animal Crossing”). Plus, it said tough economic conditions could cause folks to delay big purchases.
Diamonds for a discount: Luxury jeweler De Beers said it sold fewer carats last year (at an average of 25% cheaper per carat), and its revenue dropped 35% from 2022.
Lab-grown diamonds, which are often cheaper than mined gems, are also eating into old-school jewelers’ sales (De Beers pushes mined diamonds).
The pandemic has a very long train… The getting-hitched industry rebounded in 2022 as Covid-delayed dates were rescheduled. But now the wedding biz could feel the longtail effects of daters’ year+ of baking sourdough alone. That could vary by region: Signet said that states with the shortest shutdowns, like Texas, are seeing engagements recover faster than states with longer lasting measures, like California.