Brilliant Earth Reports Strong Q1 But Lowers 2022 Guidance
The company is feeling the impact of the uncertain geopolitical and macroeconomic environment, said CEO Beth Gerstein.
![A solitaire engagement ring from Brilliant Earth’s recent collaboration with Tacori. The retailer reported a strong first quarter but expects its full-year results to be hampered by the current geopolitical and economic environment. 20220513_Brilliant Earth x Tacori Ring.jpg](https://uploads.nationaljeweler.com/uploads/88a41039a2bff4296e349c95ffbb46f9.jpg)
“The first quarter saw strength across key operating metrics including robust sales growth, expansion in gross margin and strong profitability,” CEO Beth Gerstein said in a press release about the results.
Gerstein attributed the success in part to the company’s popularity with millennials and Gen Z shoppers and its omnichannel growth initiatives.
The jewelry company, which went public last September, has been steadily growing its store footprint.
Here are five takeaways from its latest earnings report, released Thursday evening.
Brilliant Earth had a solid first quarter.
Net sales were $100 million, a 42 percent increase year-over-year compared with $70.7 million in the first quarter of last year.
Compared with Q1 2020, sales more than doubled, up 102 percent, said CEO Beth Gerstein during the company’s earnings call Thursday.
Net income was $3.4 million, a 42 percent increase over $2.4 million in the previous first quarter.
Total orders were up 50 percent year-over-year.
Looking to the year ahead, the company expects second quarter net sales in the range of $103 million to $109 million.
The company lowered its full-year outlook, anticipating sales in the range of $450 million to $470 million, down from prior guidance of $485 million to $500 million.
Now in its fiscal second quarter, Gerstein said the company has been feeling the impact of the current geopolitical and economic environment.
During the call, Chief Financial Officer Jeff Kuo added, “While we continue to see strong overall demand, we have seen a more moderate rate of growth, which is most notable in ecommerce.”
Another jewelry company, Pandora, also recently said it expects to see a slowdown in the U.S. market, citing inflation, geopolitical unrest, and other factors.
Brilliant Earth has been growing its retail footprint.
The company announced its 18th showroom opening Monday, cutting the ribbon on a new store in Houston, Texas. It marks the company’s third store in Texas, with the other two in Austin and Dallas opening last year.
Brilliant Earth touts its “digital-first” strategy but has been building its store network to complement its digital channels.
Having both options allows customers “to shop for jewelry how, when and where they want, and in a way that transitions seamlessly between an online and in-person shopping experience,” said Brilliant Earth in a press release about the Houston showroom.
In Brilliant Earth showrooms, customers can visit in person or make a virtual appointment to try on different pieces of jewelry, but will receive their purchase at a later date, as most styles are made to order.
New stores are expected to open this year in Cleveland, Ohio; Detroit, Michigan; and Minneapolis, Minnesota, said Gerstein.
“Our showrooms have outperformed our initial expectations,” said Kuo.
Brilliant Earth’s new fine jewelry category is doing well.
Known for its bridal offerings, the company has also curated trend-driven collections in the gemstone and fine jewelry categories.
Kuo said the company saw broad-based growth across its product assortment but highlighted its new fine jewelry category in particular.
“We continue to see outsized growth within our newer category [of] fine jewelry,” he said.
“While it remains a small percentage of our total business, we know that customers are seeking out our trend-forward fine jewelry and that it represents tremendous growth and differentiation for our brand.”
The fine jewelry category will be prioritized in its near- and long-term growth plans, said Kuo.
He added that Brilliant Earth’s fine jewelry customers, and those who visit a showroom, show higher repeat purchase behavior than its overall customer base.
Gerstein highlighted several collections that have been top-performers, including the “Wildflower” collection and its Greenland Ruby collection, featuring rubies that are traceable from mine to market.
The Virtu Gems collection, which features gemstones from artisanal miners in Zambia, Kenya, and Malawi, also performed well. The gems are traceable through blockchain, said Brilliant Earth.
In January, the company partnered with Tacori on a collection of bridal jewelry, which has been “very strongly received and has been outperforming our expectations,” said Kuo.
Despite a lowered outlook, Gerstein asserted fine jewelry is a resilient category.
“We do find that in more uncertain times, the fine jewelry category does remain quite strong,” said Gerstein.
Gerstein and Kuo both stated on the call that while growth has taken a more moderate pace, overall demand is still strong.
In uncertain times, consumers invest more in personal relationships, said Gerstein, pointing to the forecasted uptick in engagements and weddings.
The Knot expects 2.6 million weddings will take place in the United States this year.
“In times of inflation, consumers see it as a physical good. It’s more tangible and has inherent value,” she added.
The consumer price index, which measures the average change in prices over time consumers will pay for a basket of goods and services, rose 8.3 percent year-over-year in April, the highest level since the summer of 1982.
“We do have higher price points, and so as a more considered purchase, it ends up taking a little bit longer in times of uncertainty for customers to actually make their decisions, and that ends up extending the overall sales cycle, which has created a little bit of a slower ramp in terms of overall revenue growth,” said Gerstein.
Brilliant Earth is maintaining its focus on sustainability initiatives.
From its founding, Brilliant Earth has marketed its commitment to taking an ethical and sustainable approach to its business.
Its website touts “conflict-free” diamonds and “recycled” precious metals as a way to promote ethical practices and minimize its carbon footprint. It also offers diamonds and gemstones traceable through blockchain.
The company released its first sustainability report in March, titled “A Brilliant Future,” which outlines its work and goals related to its Environmental, Social, and Governance initiatives.
Its 2023 goals include increasing blockchain diamonds to 20 percent of its natural diamond inventory and conducting a lifecycle assessment of key raw materials to understand the impact on biodiversity, water, and energy use.
By 2025, the company aims to have 50 percent of its lab-grown diamonds certified to an environmental product standard, source all of its gold and silver from recycled sources, increase its purchase of Fairmined gold from artisanal small-scale miners, and eliminate single-use plastics in showrooms and corporate spaces.
By 2030, it looks to get to zero waste in its showrooms and corporate spaces.
The Latest
![Direct-to-consumer retail brand Diamonds Direct has opened a store in the Atlanta neighborhood of Buckhead, an area known for its upscale malls. Diamonds Direct Atlanta store](https://uploads.nationaljeweler.com/uploads/2e6577afc9470ba1c1de327fad397366.jpg)
It’s the Signet-owned banner’s first location in Georgia.
![These “Double Loop” earrings feature a drop-cut amethyst sitting atop the lower hoop, totaling 1.60 carats between both earrings. The hoops are made of silver covered in “pistacchio” colored enamel, while 9-karat yellow gold holds the stones in place and connect the two hoops behind the earlobe ($1,770). Bea Bongiasca’s Double Loop Earrings](https://uploads.nationaljeweler.com/uploads/f338ef6b4603be3c97765f833b831ca0.jpg)
Commemorate “brat summer” with these green hoops.
![The skyline of downtown Providence, Rhode Island. Jewelers of America held one of its Multifacted Learning Workshops there on July 17 and National Jeweler Editor-in-Chief Michelle Graff tagged along. Stock image of Providence, Rhode Island, skyline](https://uploads.nationaljeweler.com/uploads/4ec5b02d4cbaaaa2283bdcf6820950a4.jpg)
Editor-in-Chief Michelle Graff returns from Rhode Island with thoughts about in-store shopping and a trends report.
![Untitled design.jpg](https://uploads.nationaljeweler.com/uploads/583fbcb2bb839782810080debef35d3c.jpg)
As the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.
Sponsored by Gemological Institute of America
![](https://uploads.nationaljeweler.com/uploads/99a46b30cc354962ac2e29ecd113587a.jpg)
![Earlier this month, online giant Amazon and the Better Business Bureau filed a joint federal lawsuit against ReviewServiceUSA.com for allegedly selling fake reviews, both positive and negative. Amazon package outside door](https://uploads.nationaljeweler.com/uploads/27fce4225a38900d54a5536ce523a22d.jpg)
They claim ReviewServiceUSA.com was selling both positive and negative reviews of products and businesses.
![A shot of the Venetia diamond mine in South Africa, owned by De Beers Group. The diamond miner and marketer saw revenue drop 21 percent and rough diamond sales decline 20 percent in a “weak” market for diamonds. De Beers’ Venetia diamond mine](https://uploads.nationaljeweler.com/uploads/a1f16ceaaba662e80385166060d192a7.jpg)
Lab-grown diamond sales in the United States and ongoing economic challenges in China are impacting natural diamond demand.
![1872 x 1052 Gemolite.jpg](https://uploads.nationaljeweler.com/uploads/9d60901b44425a53b9010301897a3bbc.jpg)
GIA®’s most advanced microscope has new features to optimize greater precision and comfort.
A longtime member of IJO, she’s remembered for her passion for design, learning, and environmentalism.
![Volunteers and Shane Co.’s corporate team from all 22 locations of the family-owned jewelry chain have begun packing backpacks with school supplies for teachers to distribute to their students this school year. Shane Co. and the Kids in Need foundation logo](https://uploads.nationaljeweler.com/uploads/1c5abfb36ec775724f014f47bfbb47fc.jpg)
The fine jewelry retailer filled backpacks with back-to-school essentials for students in 13 states.
![Chaumet, a Parisian jeweler owned by LVMH, has designed the Olympic and Paralympic Games medals. Chaumet Paris 2024 Olympics medals](https://uploads.nationaljeweler.com/uploads/7831b3a738baddfc7d783e6df0fbf796.jpg)
The Parisian brand is the first jewelry company in the history of the Olympic and Paralympic Games to design the medals.
![The acquisition of Union Life & Casualty by Jewelers Mutual will help strengthen both the pawn market and the insurance industry, said JM. Jewelers Mutual and Union Life and Casualty logos](https://uploads.nationaljeweler.com/uploads/195925667226ecfc51b4e1bb09607143.jpg)
Union Life & Casualty will join JM Insurance Agency Partners, expanding the provider’s pawnbroker coverage.
![The winner of this year’s Lonia Tate scholarship, Bradlei Smith will receive the opportunity to earn her Graduate Gemologist diploma from GIA and, following graduation, an internship at Ben Bridge Jeweler in Seattle. Bradlei Smith](https://uploads.nationaljeweler.com/uploads/996834935ae30a7a1195db8b9db6cb7d.jpg)
Los Angeles-based Bradlei Smith was selected for this year’s award.
![Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com. National Jeweler columnist Peter Smith](https://uploads.nationaljeweler.com/uploads/bec7295a7f478778b1c196e6d81e7cd9.jpg)
In his latest column, Smith shares multiple reasons why people who look at the glass as being hall full often make better salespeople.
![De Beers Group mined 6.4 million carats of diamonds in the second quarter of 2024, down from 7.6 million in the same period last year. (©De Beers Group/Photo credit: Ben Perry @ Armoury Films) De Beers rough diamond display](https://uploads.nationaljeweler.com/uploads/80cd02b1c8384f4b2efda0bcdf6a75e1.jpg)
The company also reported the $150 million sale of an iron ore royalty right, part of its ongoing effort to divest “non-core” assets.
![In honor of its summer bridal event, Long’s Jewelers is partnering with Wequassett Resort and Golf Club on Cape Cod in Massachusetts, and jewelry brand JB Star on a vacation giveaway. Long’s Jewelers giveaway promo](https://uploads.nationaljeweler.com/uploads/4e7a90944c4e8875a4f3818dbe26b28b.jpg)
The giveaway is part of the New England jeweler’s summer bridal event.
![L.A.-based flower designer, Sophia Moreno-Bunge models Guzema’s “Hidden Beauty” collection in front of a garden in Rustic Canyon in Santa Monica, California. Sophia Moreno-Bunge of Isa Isa modeling Guzema’s Hidden Beauty collection](https://uploads.nationaljeweler.com/uploads/6f3822623eb7fd2f6468f82825194cb1.jpg)
The ad features three celebrity florists creating floral sculptures while wearing jewelry by Guzema.
![The Entrepreneurship Grants program supports winners with financial aid to scale their businesses and increase their societal impact, said Diamonds Do Good. Pictured here are three of the 13 winners, top right is Tresia Shituula, and bottom row left to right, are Monkgogi Moshaga and Mohamed Samu. Tresia Shituula, Monkgogi Moshaga, Mohamed Samu](https://uploads.nationaljeweler.com/uploads/a7c9b87301b76a9446f6522747ce5b95.jpg)
The grant provided a total of $100,000 to support 13 entrepreneurs from diamond communities in Africa and India.
![Ghazi Osta, better known as Gus, was the owner and president of Volusia Gold & Diamond, a store he and his wife, Leigh Osta, opened in 1986. He was shot and killed inside the store Friday afternoon after a brief argument with a regular customer. (Photo courtesy of Volusia Gold & Diamond Facebook page) Ghazi “Gus” Michel Osta](https://uploads.nationaljeweler.com/uploads/c8c1fa3df746cbd364915a98dcac9d21.jpg)
Ghazi Michel Osta, or “Gus,” was killed Friday by an 83-year-old man said to be a frequent customer at his store, Volusia Gold & Diamond.
![Elyssa Jenkins-Pérez (left) is the Responsible Jewellery Council’s new head of North American development, and Effie Marinos is its new specialist advisor for technical standards. Elyssa Jenkins-Perez and Effie Marinos](https://uploads.nationaljeweler.com/uploads/94332af0c7a776e7a8c36fabf76baa5f.jpg)
The organization also announced Effie Marinos as its new specialist advisor for technical standards, as well as four other appointments.
![Karen Rentmeesters, who joined the Antwerp World Diamond Centre in 2010, will take on the role of CEO. Karen Rentmeesters](https://uploads.nationaljeweler.com/uploads/3256fcc71cd43a399055c61f68486269.jpg)
Rentmeesters has served as interim CEO since April following former CEO Ari Epstein’s resignation.
![Longtime Washington, D.C., jeweler Brian Mann (right) with his wife Jessie Mann, an artist who custom-paints porcelain Limoges Boxes, at a 2016 Jewelers of America member event. Mann, the longtime co-owner of David Mann Jewelers, died June 21 at age 70. Brian and Jessie Mann](https://uploads.nationaljeweler.com/uploads/be4debc6e0b3198943a66ef0e2197c2c.jpg)
Mann, whose family’s jewelry store was located inside the Pentagon, is remembered for being a thoughtful champion of the industry.
![The 1916 Company recently opened a new Tudor boutique in Denver’s Cherry Creek Shopping Center. Tudor store in Denver](https://uploads.nationaljeweler.com/uploads/9f8600ea53ed731963331ebd28a10d16.jpg)
The 500-square-foot boutique is located in Denver’s Cherry Creek Shopping Center.
![This necklace from Messika’s “So Move Max” set is made of yellow gold with 19.18-carats of brilliant-cut diamonds and designed with circle motifs that move within the links (price upon request). Messika’s So Move Max Necklace](https://uploads.nationaljeweler.com/uploads/14c78af4a4e8c6b996a81bbb5a5bc69f.jpg)
Dance all night long with the “So Move Max” set’s necklace.
![On Sept. 1, Julien Tornare (left), current CEO of TAG Heuer, will become CEO of Hublot. Antoine Pin, now the general manager of Bulgari’s watch business, will take over Tornare’s role as CEO of TAG Heuer. (Images courtesy of LinkedIn) Julien Tornare and Antoine Pin](https://uploads.nationaljeweler.com/uploads/b24627b34ece895ddd254bae22751fb8.jpg)
Luxury giant LVMH is reshuffling the leadership in its watches division.
![A rendering of a billboard from Etsy’s new campaign. The campaign is designed to highlight the platform’s creators and how their products are made. Etsy billboard rendering in NYC](https://uploads.nationaljeweler.com/uploads/9a94f394f326b90dc1c9da6a711c5e09.jpg)
Sellers and shoppers have spoken out against a rise in mass-produced merchandise on the platform meant to highlight handmade goods.
![Ariana Grande said she cannot wait “to inspire others to embrace their own unique sparkle,” as Swarovski’s brand ambassador. (Photo credited to Mert Alas and Marcus Piggot for Swarovski) Ariana Grande Modeling in Swarovski Jewelry](https://uploads.nationaljeweler.com/uploads/adaa79dce0741a275427155078691611.jpg)
The celebrity will star in Swarovski’s holiday campaign.