Tech Bros Killed Kay Jewelers… With a 3-D Printer?

Well, it looks like the "diamonds are forever" pitch is officially dead, and lab-grown stonemakers are holding the smoking gun.

Signet Jewelers (the world’s largest diamond-jewelry seller and the parent company of brands like Kay, Jared, Zales, and Blue Nile) just gave investors a scary forecast for the year. The reason? Fewer folks are putting a ring on it. Signet, which depends on bridal jewelry for half its sales, saw its stock plunge 12% after revealing a 10% drop in sales during the holiday quarter. 

So who are they blaming? Affordable, lab-grown diamonds that don’t come with the whole “mined by a dude sweating in a cave” backstory. Natural diamonds average $6,600… And lab-grown ones? Roughly half that. When you’re a millennial or Gen Z couple just trying to afford groceries, spending half for the same sparkle feels less like a choice and more like common sense. (Sorry, Kay… turns out every kiss now begins with a 3D printer).

The engagement game isn’t exactly hot either. And don’t get too excited, because Signet expects just 5% to 10% more knee-droppers this year.

CEO J.K. Symancyk, fresh in the hot seat, admitted the truth: “Lab-created diamonds have disrupted the industry.” Basically: We’re getting our lunch eaten by science nerds with 3D printers. 

Remember when getting engaged was a free ATM withdrawal for jewelers? Not anymore. People are delaying marriage or skipping it altogether. And let’s not forget the pandemic threw a wrench in the engagement timeline. Three years of dating before popping the question? Hard to hit that mark when your "dates" were Zoom wine nights or yelling at each other over “Animal Crossing.”

Luxury jeweler De Beers is also feeling the pinch. It sold fewer carats last year (at an average of 25% cheaper per carat), and its revenue dropped 35% from 2022. Why? The kids want shiny, affordable lab diamonds, not overpriced mined ones. De Beers tried to hold the line, but at this point, they’re bringing a diamond knife to a 3D-printed gunfight.

In a classic "we tried to keep up" move, Signet acquired Blue Nile in 2022 (a company with an entire web section dedicated to lab-grown bling). But the integration has been about as smooth as a sandpaper massage. The company openly admitted struggling to merge Blue Nile and James Allen into their existing operations. Guess trying to catch up to lab-grown is a little harder than they thought.

Signet and De Beers can run all the nostalgic "A Diamond is Forever" ad campaigns they want. But when young couples can get a bigger, shinier rock for half the price? Game over.

Stock.News has positions in Signet and Zoom mentioned in article.