Signet Jewelers Ltd., the parent company of Kay Jewelers and Zales, had previously signaled to investors that there would be an upswing in US engagements this year as dating patterns returned to normal. But that forecast was downgraded on Wednesday as the jeweler warned that persistently high inflation and job market uncertainty have forced some young folks to delay engagements.
"If right now they're worried about their jobs or they're still paying a little bit more for rent or for gas, then they might wait a few months for that engagement," Gina Drosos, the CEO of SignetSignet, explained in a Wednesday interview quoted by Bloomberg.
Signet previously told investors that 2024 would be the year of an upswing in US engagements. However, this outlook was revised on Wednesday, and the number of engagements for the year is expected to rise between 5% and 10% versus the previous forecast of 10%.
Drosos said 2.1 million couples were engaged last year, the lowest in years, but recovered from the dating dry spell during Covid. Still, the number is well below the 2.8 million level seen pre-2020.
The downshift in the outlook comes after three years of elevated inflation, which has strained consumers' finances.
In the era of failed Bidenomics, Gen-Zers and millennials have flooded social media platforms, complaining about their financial hardships:
The struggle is real for the new generation, which is just now learning that working a 9-5 isn’t as easy as college. pic.twitter.com/FvAeYkTddt
— Ian Miles Cheong (@stillgray) October 25, 2023
A lot of people seem to think this mindset is unique to Gen Z. It’s not.
— Matthew Kobach 🍕 (@mkobach) October 20, 2023
Every generation goes through this. Watch Reality Bites, where a group of 20-somethings in the early 90s deal with the exact same struggles and emotions as described in this video.
pic.twitter.com/7h1gAN3c7R
For youngsters who have already planned a wedding, average costs hit a new record high in 2023, exceeding $30,000, according to The Wedding Report, a research company that tracks wedding data.
Drosos added, "Wouldn't it be great if the Fed lowered interest rates and if consumer confidence got on a really consistent upswing?" She noted that easing financial conditions would push the number of 2024 engagements to the high end of Signet's guidance.
The obsession with lavish weddings is over for the average couple. Say goodbye to elaborate floral displays, a beautiful venue on a golf course, crab cakes and steak for dinner, fancy champagne toasts, live bands, open bars, chocolate fountains, and multi-tiered cakes, as an increasing number of folks are opting for courthouse weddings in the era of failed Bidenomics.
