Sales of fine jewelry and watches were an estimated $5.8 billion in April 2015 in the US market, a decline of 1.5 percent from the same month a year ago, according to new data from the US Department of Commerce. This is the seventh consecutive month of weak consumer demand in the US market. The rate of the sales drop in April was slightly greater than the average sales decline of 1.2 percent for the six-month period October 2014 through March 2015.

 

Specialty jewelers – merchants whose primary business is selling fine jewelry and watches – posted a much smaller sales decrease than in recent months. During April, specialty jewelers’ sales were 2.4-percent lower than the same month a year ago. Prior to April, specialty jewelers’ sales had been shrinking by 5-to-6 percent a month since October 2014.

 

Total Jewelry Sales Sluggish in April

Fine jewelry and watch sales fell by 1.5 percent in April, when compared to sales in April 2014, based on new data from the US Department of Commerce. This represents the seventh consecutive month of weak consumer demand for fine jewelry.

 

The graph below illustrates monthly sales trends for sales of fine jewelry and fine watches since the beginning of 2014.

 

 

Jewelry Demand Significantly Lags Other Retail Categories

When compared to total US retail sales trends, jewelry sales have been much weaker than most other consumer categories. For example, total retail sales were up 1.4 percent in April; in March they were up 2.3 percent when jewelry sales dipped by 1.5 percent. Since the beginning of 2014, jewelry sales growth has out-paced total retail sales growth during only one month.

 

The graph below summarizes the percent change, year-to-year, of total US retail sales and total US fine jewelry and watch sales. The green bar represents total retail sales while the red bar represents jewelry sales trends. Total retail spending by shoppers has continued to grow, while jewelry spending has decreased.

 

 

Specialty Jewelers’ Sales Decline Slows in April

Specialty jewelers’ sales dropped by only 2.4 percent, when compared to April 2014, a much smaller decline than in recent months. In part, sales comparisons were relatively easy against last year’s modest sales gain of 2.1 percent. In part, specialty jewelers began promoting Mother’s Day merchandise early this year, so some of the demand for Mother’s Day jewelry probably was transferred to April from May. Mother’s Day was Sunday May 10, so there were some Mother’s Day sales during the final two weeks of April as well as the first 10 days of May.

 

The graph below summarizes specialty jewelers’ monthly sales trends since the beginning of 2014.

 

 

Outlook: Brighter for May

Early reports from our sample of specialty jewelers indicate that sales in May should be stronger – or at least not as weak – as in prior months. It is possible that sales will be flat or up as much as 1 percent. However, there has been some significant dichotomy in results, with a few jewelers reporting very weak sales.

 

Our sales forecast for 2015 remains unchanged: flattish sales this year, when compared to 2014 levels.