Signet Jewelers is ramping up its emphasis on lab-grown diamonds (LGDs) within its fashion jewellery lines, according to its First Quarter Fiscal 2025 Earnings call. The move comes as the company looks to capitalise on changing consumer preferences and leverage the cost efficiencies of lab-grown diamonds to offer more attractive price points.
During the first quarter of fiscal 2025, Signet reported a 14% increase in revenue from LGD fashion pieces compared to the previous year. This growth is particularly notable as these items boast an average transaction value (ATV) more than double that of non-LGD pieces, marking a significant upsell opportunity for the retailer.
Signet’s Chief Executive Officer, Virginia Drosos, highlighted that while natural diamonds remain the preferred choice for engagement rings, lab-grown diamonds have carved out a substantial niche in fashion jewellery. The affordability and larger carat options of lab-grown diamonds appeal to price-conscious consumers who desire the aesthetics of high-quality diamonds without the associated costs.
Drosos said, “Lab-created has been a good choice for more price-conscious customers. We’ve had a challenged consumer environment for a while now. And so I think that it has been a good innovation in that context for people who can’t afford to get the size and clarity of stone they’d like in natural.”