Luxury jewelry sales increase despite overall decrease in U.S. luxury spending

From CNBC: 2025-07-01 08:00:00

Domenica Graci, CEO of One Luxury, is spotted wearing various luxury bracelets. Luxury retail expected to improve in 2025 after a strong Q4 but U.S. credit card spending on luxury goods dropped in first 5 months compared to 2024. However, luxury spending in May only dipped 1.7% YoY with jewelry outperforming other categories. Jewelry spending has increased monthly since September, with a 10.1% YoY surge in May. High-end jewelry brands lost customers but saw higher average spend. Analysts attribute this to the perception of jewelry as an investment piece with sentimental value. Jewelry sales boosted by recent rise in gold prices. Luxury handbag brands have increased prices up to 30-40% since pandemic with limited newness. Luxury watch spending increased 14.7% YoY in May, but top watch brands saw a 10% decline. Swiss watch exports surged due to potential tariffs. Consumer sentiment may be improving, but threats like potential tariffs and geopolitical tensions could impact luxury spending in the future.



Read more at CNBC: Jewelry sales outperform as U.S. luxury spending falters: Citi