Diamond Gems Weekly - September 23
The diamond and jewelry industry sure keeps us on our toes. Last week our attention squared on Hong Kong for the Jewellery & Gem World show that ended Sunday to mixed – perhaps, better than expected – reviews. This week our focus turns back to America where we received several indicators – surprisingly positive, I might add – for the holiday season.
Here’s what we’ve noted in the news:
>>> Signet jewelers saw its shares pop after the company hinted to better times ahead during it’s fiscal second quarter results. Management gave some important commentary about the fashion jewelry segment, bridal, and its lab-grown diamond (LGD) offering, although I still detect some tension between its LGD strategy and its apparent pivot back to natural diamonds. I discuss in my latest video: Signet Signals Return to Growth.
>>> The Federal Reserve reduced interest rates by 0.5 percentage points since “recent indicators suggest that economic activity has continued to expand at a solid pace.” The decision was in line with its goal to reduce inflation to its 2% target. Read the full statement here.
>>> MasterCard expects a 3.2% rise in holiday spending during the November 1 to December 24 period, which would be in line with last year’s performance. Watch out for affordable bling, was among the takeaways. Read the summary here and the full report here.
>>> Deloitte gave a similar outlook that Holiday Retail Sales Are Expected to Increase 2.3% to 3.3%.
>>> A survey showed 56% of jewelers saw gains in August, as reported by Instore Magazine.
>>> Another great column by industry consultant Peter Smith for National Jeweler in which he refutes the notion that the jewelry market may have plateaued.
>>> The suggestion that it has was among the factors that inspired De Beers to return to category marketing as part of its Origins Strategy. De Beers appointed Sally Morrison (pictured) to lead its category marketing activity in the US. Her initial approach will be to roll out De Beers holiday program in partnership with Signet Jewelers.
>>> We’ll have to revisit this newsletter around the end of November-December to assess the effectiveness of those campaigns. For now, we shift our attention to the rough market, and some interesting jewelry auctions taking place in the coming week. Here’s what I have my eye on:
De Beers sight: September 23 to 27.
Petra Diamonds FY Results: September 24.
Bonhams Exceptional Jewels Sale – New York: September 26.
Melee The Show – Paris: September 27 to 29.
Heritage Auctions Fall Fine Jewelry Signature Auction: September 30.
Image: Sally Morrison (De Beers).
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