Signet Jewelers is betting big on lab-grown diamonds as it shifts focus toward fashion jewelry, aiming to attract consumers seeking bold styles at accessible price points. Speaking at the ICR Conference on January 14, new CEO J.K. Symancyk highlighted the rising demand for lab-created diamonds in the under-$1,000 and under-$500 categories, signaling a major shift in consumer buying habits.
“We see growth and momentum in fashion that we need to capitalize on,” Symancyk stated. “There is a clear opportunity to amplify lab-created diamonds in our assortment, particularly in affordable gifting segments.”
Signet has already seen a 30% surge in sales of lab-grown diamond fashion pieces, with consumers increasingly opting for these stones over traditional mined diamonds. Unlike engagement rings, where lab-grown diamonds have sparked debate, fashion jewelry featuring these alternatives has been well received, boosting margins and encouraging customers to trade up.
Symancyk emphasized that this shift doesn’t mean Signet is pulling back from the bridal sector. “This is not a move away from engagement rings,” he reassured. “That remains a core part of our business and a strength.” However, Signet’s engagement ring sales have yet to fully recover from pandemic-era declines. While the company observed positive trends in Q4, growth remained slower than anticipated.
The strategy to enhance its fashion offerings aligns with Signet’s broader goal of becoming more relevant to female consumers and younger buyers. Additionally, Symancyk signaled a potential overhaul of Signet’s marketing efforts, suggesting a refined approach to meet customers where they shop and ensuring a balanced presence across key shopping occasions.
Despite this pivot toward fashion, Signet faces challenges. On the same day as the CEO’s remarks, the company reported a 2% decline in comparable holiday sales—falling short of expectations for same-store sales growth.
As Signet leans into lab-grown diamonds and fashion-forward jewelry, the industry watches closely: will this strategic shift redefine the jewelry landscape, or is it a gamble in an unpredictable market?