Jewelry Shines Bright as Other Luxury Sectors Dim, Citi Report Reveals
August 1, 2025 – New York City — While many luxury categories are facing a slowdown in consumer spending, jewelry sales in the United States are defying the trend, according to a new report from Citigroup.
The analysis, which examined credit card transaction data across multiple high-end categories, found that jewelry purchases continued to climb in the first half of 2025, even as spending on designer fashion, watches, and luxury home goods softened. The report suggests that jewelry is benefiting from a perception shift—now seen by many consumers as both a timeless accessory and a lasting investment.
“Jewelry appears to be enjoying a ‘safe-haven’ status in the luxury market,” said Citi retail analyst Linda Harrison. “While broader discretionary spending is cooling due to economic uncertainty and high interest rates, affluent consumers are still putting their money into items with enduring value.”
The report comes amid signs of consumer fatigue across several premium sectors. Luxury fashion retailers have reported weaker-than-expected earnings, and sales of high-end handbags and timepieces have dipped compared to last year’s post-pandemic boom.
Several factors are fueling jewelry’s resilience. The category is being buoyed by strong bridal sales, renewed interest in heirloom-quality pieces, and continued innovation by leading brands. Analysts also point to a growing appetite for lab-grown diamonds, which offer cost-conscious consumers a more affordable entry point into fine jewelry.
Still, Citi warns that the broader luxury landscape remains fragile. “We expect brands to become more aggressive with promotions in the second half of the year,” the report noted, “especially in categories where inventory levels remain high and demand is softening.”
For now, however, jewelry retailers are enjoying a moment of sparkle in an otherwise subdued luxury environment.
