(Bloomberg) -- The owner of Kay Jewelers and Zales is selling more high-end jewelry, which is helping the company overcome a slowdown in demand from lower-income shoppers.
Around 30% of Signet Jewelers Ltd.’s sales are now what the company calls “accessible luxury” — items that cost between $1,000 to $3,000. That’s up from around 20% before the pandemic, Chief Executive Officer Gina Drosos said in an interview on Tuesday.
Before Covid, Signet focused more on jewelry priced at $250 to $999. While that’s still the bulk of sales, demand for items at those price points has slowed in recent quarters as budget-conscious shoppers shift their dollars to pay for more expensive gas, rent and other essentials.
But as is the case with other parts of the retail landscape, more affluent shoppers haven’t pulled back spending on jewelry as much as lower-income consumers. Signet’s sales and profit for the third quarter beat analysts’ estimates, sending the shares up as much as 22% for their biggest gain in about a year and a half.
Drosos said she expects strong holiday sales and noted that consumers are shopping later this year in search of better deals. More people are expected to give cash this season, which could be a boon for post-Christmas sales, she added.
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