Signet Jewelers recorded a fall in sales in the fourth fiscal quarter after what was described by the group's CEO Virginia Drosos as growth in consumer awareness about falling lab-grown diamond (LGD) prices.
“I think that consumers are becoming more aware that lab-created diamond prices are falling,” Drosos said at an analyst call, as cited by Rapaport.
“And so while they might be great for fashion jewelry, there’s something very, very rare and individual about a natural diamond. And so we think that that is a potential tailwind for natural diamonds in the year ahead.”
Signet, which adopted LGDs for its jewelry on a large scale, has said that its sales fell 6% year on year to $2.5 billion during the period. The average transaction value slipped 0.6% in North America and slumped 10% in other regions. The retailer also divested some of its prestige watch boutiques.
Signet’s lab-grown sales are in the “teens percentage” of total group revenue, Drosos noted. Meanwhile, bringing more lab-grown into the fashion category proved a good strategy for Signet over the holidays, she added.
Still, Signet expects the overall jewelry industry to be “down mid-single digits” this year.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
