Market Comment

News: Signet share price plummeted 22% on Jan. 14 after holiday same-store sales -2% YOY, with weak fashion sales and shift to lower price points. Share price declined 43% over past 3 months. Independents had better season than large chains. Drop in consumer prices for synthetics incentivizing retailers to sell natural. Richemont fiscal 3Q sales at jewelry maisons +14% YOY to $4.6B. Rupee depreciation (-3% since Oct. 1 to INR 86.6/$1) may reduce Indian demand. Industry cautious about taking on inventory. Alrosa reduces prices by about 8% at Jan. sale. Low sales expected at next week’s De Beers sight. India 2024 net polished exports -20% to $7.8B, net rough imports -16% to $11.3B.

Fancies: Fancy-shape prices stable. Prices firm for 3 ct. and larger, as nice items are hard to find. Good US demand and price increases for elongated Ovals in D-I, VS-SI categories with good shape and quality. Ovals 5% to 10% more expensive than Pears in US market. Elongated Emeralds, Radiants and Pears in demand, with stable prices. 2.50 to 2.99 ct. trading at significant premiums in those shapes. Supply shortages supporting prices for Marquises. Square Cushions slow. Very well-cut fancy shapes difficult to find and commanding premiums. Off-make, poorly cut fancies illiquid.