Strong Opening to Luxury Show Reflects ‘K-Shaped Recovery’

Activity was solid on the first two days of the higher-end Luxury show in Las Vegas as US retailers stocked up on finished jewelry to meet affluent consumers’ needs.

Traffic was strong, especially on Wednesday, the fair’s opening day, exhibitors told Rapaport News Thursday. Buyer attendance dropped off somewhat on Thursday as the Couture show started across the street.

Vendors reported a high quality of buyers, with retailers showing little pullback because of external issues such as US tariffs, Middle East tensions, and high gold prices. The yellow metal has risen 37% over the past 12 months to around $4,500 per ounce, after breaching the $5,000 mark earlier this year.

“The only people that were concerned about $5,000 gold [were] the retailers and the manufacturers,” said Mark Casey, regional sales manager at Allison Kaufman, a diamond-jewelry manufacturer based in California. “They realized that the customers were still coming in, because the customers don’t know what $5,000 gold means to them. They still want to get married, they still want to [celebrate] an anniversary or birthday, they still want…to look pretty and have something to feel good about.”

Jewelers made a lot of outright purchases, exhibitors said. Retailers and their own customers are in the market for unique pieces. Large US independents showed more demand than smaller mom-and-pop stores and major chains. A minority of exhibitors who spoke with Rapaport News reported a slow show, mainly because of the impact of lab-grown diamonds.

Bifurcation

The situation reflects the wider split in the market.

“What we’re seeing now is a K-shaped recovery,” De Beers CEO Al Cook said at a panel discussion on Thursday on the show’s sidelines. “And what do I mean by that? I think that the larger, higher-quality diamonds are really growing in value and growing in [desirability]. But…[in] the lower-quality, smaller diamonds, we’re still seeing challenges.”

Specific trends at Luxury included demand for off-color diamonds as consumers seek stones that are obviously natural, as well as a preference for yellow gold, which tends to make diamonds look whiter.

“People want to see natural color in their diamonds,” said Jonathan LeVian, vice president of sales and marketing at Le Vian, which showcased its brownish diamonds at Luxury.

“Some of the retailers themselves had been nervous about the price of gold and tariffs and everything going on, but at retail it seems that the consumers were resilient [and] still wanting that experience,” LeVian added. “When we tell the right stories, and we give the customer an experience, they’re happy and they love it.”

However, demand at the show has been robust across the board, not always following the standard bifurcation between large and small goods, according to Jeff Loots, president of bridal-jewelry brand Henri Daussi. He reported a “super positive” opening to the show.

“Some [retailers] are getting less into lab, so they’re looking for [a] replacement for it,” Loots noted. “And we have a lot of smaller [center stones] that look a lot bigger. So that’s definitely been positive [as well]. If you look at my sales [and] you try and look for some type of explanation or a strategy, it really makes no sense whatsoever.”

One plan that did pay off, however, was booking a large number of appointments in advance, he observed.

Uniqueness

Sellers also pointed to uniqueness as a driver of sales.

“Retailers are saying there’s less traffic through their doors, so why are sales up? Because they’re focusing on higher-ticket items,” said Sumay Bhansali, partner and CEO of A. Jaffe, a New York-based supplier of wedding bands and natural-diamond semi-mounts.

At Luxury, the company displayed a new AI search platform and a new line of expandable rings. “It’s not just about increasing prices, but about giving retailers the tools, differentiation in quality, and a compelling narrative that allow them to command higher prices while still delivering value,” Bhansali added.

The more diverse JCK Las Vegas show, which began Friday, will provide an indication of the state of the broader market, including loose diamonds. Luxury exhibitors have the advantage of being exposed to the wealthier shoppers who are more insulated from geopolitical and economic headwinds.

Consumers “can go out and buy ice cream and still do okay,” said Casey of Allison Kaufman. “Gas is a little high, and they [complain] about that a little bit, but people are still coming in and buying.”

Image: The Luxury show. (JCK events)