Signet Jewelers is increasing its emphasis on lab-grown diamonds (LCDs) in its fashion jewelry lines, according to its First Quarter Fiscal 2025 Earnings Call. The move comes as the company seeks to capitalize on shifting consumer preferences and use the cost savings of lab-grown diamonds to offer more appealing pricing.
In the first quarter of fiscal 2025, Signet reported a 14% rise in revenue from LCD fashion pieces over the previous year. This increase is especially noticeable because these items have an average transaction value (ATV) more than double that of non-LCD items, indicating a huge upsell opportunity for the merchant.
Signet’s CEO, Virginia Drosos, stated that while natural diamonds are still the favored choice for engagement rings, lab-grown diamonds have carved themselves a significant niche in fashion jewelry. The affordability and bigger carat options of lab-grown diamonds appeal to price-conscious consumers who want the look of high-quality diamonds without the related costs.
Drosos stated, “Lab-created has been a fantastic solution for more cost-conscious clientele. We’ve had a difficult consumer environment for a while. So I believe it has been a beneficial innovation in that context for individuals who cannot afford to have the size and clarity of stone they desire in nature.”