In a Tuesday interview with CNBC’s Jim Cramer, Signet Jewelers CEO J.K. Symancyk said that while his company makes a distinction between natural and lab-grown diamonds, there is a market for both types.
“When you get above $5,000 price point, that’s a more natural leaning customer. That’s somebody that’s thinking about holding value as an asset,” Symancyk said. “When you get — particularly in engagement rings — below $2,000 that’s about maximum emotional value, and that’s where lab really has play.”
Signet Jewelers owns a number of brands, including Kay Jewelers, Zales and Jared.
According to Symancyk, lab-grown diamonds benefit business beyond the engagement ring segment. He said the man-made gems are a “category extender for fashion,” which is critical to his company’s growth strategy. Lab-diamonds boost consumers’ access to diamond jewelry, he continued, saying they make “diamond fashion jewelry more affordable in a broader cross section of jewelry.”
Engagement rings with lab-grown diamonds have become more prevalent in recent years as couples prioritize affordability, CNBC reported. While the two are chemically and visibly identical, lab-grown diamonds cost significantly less than mined diamonds — although the former has little resale value. A study by bridal website The Knot found that in 2024, 52% of couples surveyed said their engagement ring featured a lab-grown diamond. The report also found that the popularity of lab-grown grown diamonds has grown by 40% since 2019
Despite the popularity of more inexpensive jewelry options, Symancyk said some consumers are still willing to pay up for materials like gold — which surged to an all-time high on Tuesday.
“The nice thing about gold is customers know the value. There’s a definable market, and they’re willing to make that investment,” he said. “That’s probably the most permeable category as it relates to transferring price because people can anchor against it.”
Signet Jewelers comfortably topped Wall Street’s expectations for earnings and revenue when it reported on Tuesday. At market close shares were up 2.74%.
