Rome, 16 June 2023 – Although the World Health Organization decreed, more than a month ago, to end the epidemiological emergency linked to Corona virus disease, its aftershocks continued to reverberate through the US economy, as evidenced by a note issued in recent days by Signet, the main US company marketing diamonds and jewellery. Owner of the Kay Jewelers and Zales chain of stores, the company lowered its sales estimates for the full year of 2023, especially in relation to engagement rings. reason to lost sales According to the company, it will stand a prolonged period of restrictions on the movement of people due to Covid-19. “Single men and women,” the note states, “were stuck at home and could not satisfy their desire to meet new people, perhaps date and be engaged.”
Lower sales estimates
“As we expected, there were fewer correlations last quarter due to the long shutdown three years ago,” Virginia C. Drusos, chief executive of Signet, told investors. The US fell after the company lowered its sales and earnings forecasts for the remainder of the year. The engagement ring can, in a sense, be seen as a litmus test for the American economy. However, the bridal jewelry business has been hit not only by the long-term effects of the pandemic, but also through high rates of inflationable to crush the purchasing power of consumers, and because of the growing tension between buyers.
The Wedding: A Mirror of the Global Macroeconomic Context
Economists know this: The way the marriage industry moves reflects the action of broader and more enduring economic forces. Signet may sell less because fewer people have known each other during the pandemic years, but also because potential ring buyers have become more wary. And they are spending less because of higher inflation and greater uncertainty about the direction of the economy. The volume and value of jewelry sold by Signet is decreasing in the most recent quarter. “The company expected a double-dip avalanche in sales commitments in the most recent quarter,” CEO Drosos declared, explaining that in addition to Covid, other factors are at play. Lack of confidence among consumers, low tax refunds (in the US, ed.), economic concerns stemming from regional bank failures and inflation – with an average price increase of 15% in the past three years – have dampened the trend in jewelry spending. ”.
The Federal Reserve raised iTaxi of interest To try to calm the economy and combat stubborn price increases. In addition to making it more expensive for consumers to shop on credit or borrow, changes in prices have increased the likelihood that the US economy will slip into recession. Since many families are forced to rely on their savings and worry, instead, about the security of their future, It could be M Willing to commit to more expensive purchasesLike a diamond ring or a designer wedding dress.
Wedding industry: trends
According to observers, more brides are choosing “low-cost” wedding dresses. A sign, the latter, of the increasing polarization in the economy, which is affecting the wedding industry as a large part of the global economy: the few with higher incomes spare no expense even in the case of ‘yes’ regulation; An increasing proportion of low-income households find themselves spending a large portion of their earnings on basic necessities and thus cutting back on purchases deemed superfluous. To confirm this phenomenon, the latest report of the giant Lvmh, a luxury house that owns jewelry like Tiffany’s: At the beginning of 2023, jewelry sales recorded a stable and stable increase. Conversely, mass-market brands – such as those owned by the Signet Group, Kay Jewelers and Zales – will face a gradual contraction, due to the decline in the purchasing power of the average wage.
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