💎 America’s bling boom

Americans may be watching their wallets, but there still seems to be room in the budget for something shiny.

Recent earnings reports from retailers and jewelry companies point to surprising strength in jewelry and watches, spanning everything from fashion jewelry at Kohl’s to four-figure pieces at Signet and luxury jewelry from Tiffany and Bvlgari.

At Kohl’s, jewelry sales increased by the mid-single digits last quarter, outperforming the company overall. Kohl’s had previously gotten rid of its fine-jewelry business, but management said its core customers asked for it back — and since its return, “it’s worked well.”

“Jewelry just seems to be something that continues to trend incredibly well with our customers,” Jill Timm, Kohl’s chief financial officer, told analysts on August 26. 

The trend extends up the income ladder. At Bloomingdale’s, the more upscale brand owned by Macy’s, comparable sales jumped 11.3% last quarter, with fine jewelry and other “Big Ticket” items outperforming. 

At Signet Jewelers — the company behind Kay, Zales and Jared — sales at price points above $2,000 grew by the high single digits. Sales of fashion jewelry (typically lower price points) declined slightly. 

And then there’s the really shiny end of the spectrum. LVMH said Watches & Jewelry was its fastest-growing major division in the first half of the year. Tiffany and Bvlgari each grew in the mid-teens during the second quarter; Tiffany’s HardWear line grew 75%, while Knot grew nearly 50%.

Meanwhile, the watch is making a comeback. Macy’s namesake brand’s watch business is “on fire” thanks in large part to younger shoppers, CEO Tony Spring told analysts on September 10. Movado also said it's seeing some “real momentum” in its watch category as younger consumers are increasingly buying traditional watches.

The Takeaway

Even in a choosy economy, consumers are still finding room for a little luxury.

Jewelry appears to be having a moment for two reasons: People on the higher end of the income spectrum are spending more, the rest of us are finding room for little luxuries. The latter ranges from young people rediscovering traditional watches to those paying for accessible bling in Kohl’s cash. 

— J. Edward Moreno

Dave & Buster’s swung a surprise loss in its second quarter after reporting a decline in entertainment related sales, which has become the larger chunk of its revenue in recent years. 

The company told analysts on Monday that its turn-around plan involves making the chain a go-to location for special occasions or events. 

— Thomas Jones

• 🫆 Crypto: The chances of crypto market structure legislation becoming law during the 119th Congress fell sharply yesterday, as the Clarity Act failed its cloture vote in the Senate and will not advance to Congress. The probability of crypto market structure legislation passing before 2027 fell to 6% after reaching as high as 46% on Monday.

• ⛽ Oil: Following the shutoff of a Saudi east-west pipeline and renewed trouble at key straits in the Middle East, the price of a barrel of oil is up, and markets expect that petroleum will only get more expensive. Right now markets are pricing in a 56% chance WTI hits $115 before the end of the year (up from 8% a week ago), a 37% chance it hits above $125 (up from 21% a week ago), and a 19% chance it hits $150 a barrel (up from 10% a week ago). 

*Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.

That’s how much it costs per year on average to own a vehicle in the United States, according to a recent report by Insurify, not including auto loan payments. The biggest chunks of that are insurance and gas, both of which have risen in recent years. 

• Federal Reserve interest rate decision and updated economic projections due out at 2:00 p.m. ET.

• Lennar slated to release quarterly results after the close.