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- Signet Jewelers said an "engagement gap" in the US is contributing to declining ring sales.
- Company president Jamie Singleton projected the company needs to grow sales 25% by 2026 to return to engagement levels before the pandemic, CNN reported.
- Other parts of the bridal industry are also feeling the effect — David's Bridal just filed for bankruptcy for the second time in five years.
As fewer Americans opt to tie the knot, jewelry companies are reporting a dip in engagement ring sales.
According to Signet Jewelers — the largest jewelry company in the US and owner of Kay Jewelers, Jared, and Zales — retailers are suffering from an "engagement gap" that's been about three years in the making.
Jamie Singleton, Signet Jewelers' president and chief consumer officer, acknowledged the sales slump at the company's investor day last week, attributing the decline to dating reluctance and relationship rifts caused by pandemic lockdowns in 2020. Per Signet data, on average, most couples get married about 3.25 years into a relationship.
"So what's happened over the past couple of years is what we anticipated and what we planned for," she said, according to CNN. "Engagement jewelry sales were lackluster in fiscal 2023, and we expect them to remain so for the balance of fiscal 2024."
Singleton said that the market would have to grow about 25% by 2026 to return to pre-pandemic levels, a turnaround that Signet may depend on as 50% of the company's merchandise sales are from engagement jewelry, per CNN.
"We've been anticipating this coming tailwind," Signet CEO Virginia Drosos told investors. "We expect this to drive significant upside in our business over the coming years."
Signet Jewelers did not immediately respond to Insider's request for comment.
Jewelers aren't the only companies feeling the bridal slump. In early April, wedding dress retailer David's Bridal filed for bankruptcy for the second time in the last five years. The move left many brides-to-be wondering about the status of their orders, as the uncertain future of the company looms.
The company also announced it would layoff 9,000 employees despite a boom in weddings in 2022 thanks in part to rescheduled ceremonies from the pandemic, Insider's Avery Hartmans reported.