Financials

Brilliant Earth Took a Record Number of Orders in 2022

FinancialsMar 16, 2023

Brilliant Earth Took a Record Number of Orders in 2022

In its recent results, the company highlighted non-bridal jewelry sales and said its “inventory-light” showroom model may change.

20230316_Brilliant Earth pearl ring.jpg
A “Cotillion” cultured pearl and diamond ring in 18-karat yellow gold ($1,390) from Brilliant Earth’s cocktail ring collection. The company saw net sales slip 2 percent in the fourth quarter but rise 16 percent for the full year.
San Francisco—Brilliant Earth ended its fiscal year on a high note, in spite of a slide in the fourth quarter.

“It was a great year for our brand,” CEO Beth Gerstein said on an earnings call Thursday evening.

She highlighted the company’s double-digit revenue growth, its gross margin increase and strong profitability, noting the fourth quarter exceeded its bottom-line expectations.

Here are five key takeaways from Brilliant Earth’s fourth-quarter and full-year results.

It was a strong year for Brilliant Earth, but a weak fourth quarter.

Net sales in the fourth quarter, which ended Dec. 31, slipped 2 percent year-over-year to $119.6 million, with net income falling 46 percent to $6.2 million.

Gross profit was $65.4 million, or a 55 percent gross profit margin, compared to $62.3 million, or a 51 percent gross profit margin, in the prior-year period.

Notably, ahead of the holiday season, Brilliant Earth said it would not be discounting to sell through its inventory, with Gerstein adding, “we don’t believe in chasing unprofitable growth.”

The total number of orders rose 14 percent, though the average order value (AOV) fell 14 percent.

The company’s full-year results were better, with net sales up 16 percent to $439.9 million.

However, net income fell 28 percent to $19 million.

Gross profit was $234.3 million, or a 53 percent gross profit margin, compared to $187.4 million, or a 49 percent gross profit margin, in the prior-year period.

Brilliant Earth took a record 149,613 orders in 2022, with total orders up 27 percent year-over-year but AOV down 9 percent.

The company has noted in previous quarters that sales of non-bridal fine jewelry are on the rise but the category has a lower average price point, which is bringing down its AOV.

On Wednesday’s call, Chief Financial Officer Jeff Kuo attributed the decline in AOV to strong demand for items priced below $10,000, in addition to the popularity of its non-bridal fine jewelry.

Brilliant Earth will continue to invest in non-bridal fine jewelry.

Brilliant Earth is best known for its bridal offerings but has been expanding its fine jewelry selection.

It has branched out into cocktail rings and men’s jewelry and has collaborated with popular designers for new collections, including Tacori and Jade Trau.

The company continued to see strong growth in non-bridal fine jewelry and plans to continue to invest in the category.

In Q4, fashion rings, particularly cocktail rings, did well, as did on-trend tennis bracelets and necklaces.

“We know our fine jewelry is attracting new customers to our brand,” said Gerstein, noting that one-third of new customers bought non-bridal fine jewelry.

Its wedding bands were also top sellers.

“2021 was an unprecedented year of growth in bridal for our industry, and, while we anticipate some normalization over the course of this year, we expect to continue to drive share gains as we introduce new collections,” said Gerstein, hinting at some newness coming in the next few weeks.

The brand is resonating with Gen-Z and millennial shoppers, and self-purchasers.

The company also boasted about its appeal to Gen-Z and millennial customers.

Online searches for Brilliant Earth reached an all-time high in Q4, said the company.

The number of customers served in 2022 grew 25 percent.

 Related stories will be right here … 

Notably, it touted 70 percent year-over-year estimated growth in women purchasing jewelry for themselves in 2022.

“We know that self-purchase is an important and growing trend in the jewelry category. And, for Brilliant Earth, our strong brand resonance across genders has been a major driver of new customer and order growth,” said Gerstein. 

As younger shoppers search for brands aligned with their values, Brilliant Earth continues to work toward being a more sustainable jewelry brand.

Alongside its annual results, Brilliant Earth released its 2022 Mission Report, outlining its ESG (Environmental, Social and Governance) progress and future goals, which focus on “transparency, sustainability, compassion, and inclusion.”

Its goals include using 100 percent recycled or Fairmined certified precious metals by 2025 and improving its traceability efforts.

Brilliant Earth’s store network will keep expanding, and its inventory model may evolve.

Though it started as an online-only business, Brilliant Earth has been expanding its brick-and-mortar presence.

In 2022, the company opened new showrooms in 10 cities, including Houston, Minneapolis, Detroit, and St. Louis.

Its first opening of 2023 was in Charlotte, North Carolina, marking its 26th location. The company plans to open 10 new locations this year, including stores in Brooklyn, New York; Tampa, Florida; and Pasadena, California.

Brilliant Earth’s stores function as showrooms. They are light on inventory, with customers viewing select jewelry on display and then placing orders online.

However, this model may change, said Kuo.

“Over time, as we successfully expand fine jewelry to be a larger percentage of our business and grow our showroom footprint, we do anticipate our inventory model will evolve to accommodate those needs,” he said.

The company is approaching the year ahead with cautious confidence.

Looking to the year ahead, the company is expecting first-quarter net sales of $94 million to $96 million with adjusted EBITDA of $2.5 million to $3.5 million.

For fiscal 2023, Brilliant Earth is forecasting new sales of $460 million to $490 million with adjusted EBITDA of $17 million to $32 million.

Gerstein said, “We feel great about the strength of our brand and the resilience of this category and we are balancing that with some degree of caution given the current environment and recognizing that we are coming off of our biggest year in weddings.”

She added the company has plans to reach new customers and retain the loyalty of its existing ones via design innovation, marketing efforts, expanding its fine jewelry selection, improving its omnichannel experience, and opening new showrooms.

The Latest

Christies regent kashmir sapphire and regal Burmese ruby
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat Ruby

The ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.

Diamond earrings held in gloved hand
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft Recovered

The two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.

Emmanuel Raheb CEO of Smart Age Solutions
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More Jewelry

The time to start experimenting with video content is now, writes columnist Emmanuel Raheb.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Pomellato Nudo High Jewelry Campaign
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic Design

From striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.

Weekly QuizMar 21, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Jamie Singleton, Bill Brace, Rebecca Wooters, Bill Luth
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid Turnaround

The jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.

Sothebys Watchcheck
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair Services

The auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Branko Gems
SourcingMar 21, 2025
BrankoGems To Hold Conference in Montana

The event, set for June 13-15, will feature educational presentations and guided visits to the state’s sapphire mines.

Til Death Ring by Marrow Fine
TrendsMar 21, 2025
Piece of the Week: Marrow Fine’s ‘Til Death’ Ring

After the black enamel band became a best-seller for the brand, it has now launched an enamel ring personalization program.

Korman Fine Jewelry Austin store
IndependentsMar 20, 2025
Korman Fine Jewelry’s New Store Is Double the Size

The Austin, Texas, jeweler’s new 11,000-square-foot store is set to open this summer.

JCK Rocks 2025
Events & AwardsMar 20, 2025
JCK Rocks to Feature Snoop Dogg, Jason Derulo

The rapper and singer-songwriter will perform at Tao Beach on June 8.

Conversations with Chris Ploof YouTube Video Series
TechnologyMar 20, 2025
Chris Ploof, Severine Ferrari Launch YouTube Video Series

“Conversations with Chris Ploof” covers tips for men buying wedding bands, behind-the-scenes footage of Ploof in his studio, and more.

Limelight Lab Grown Diamond store in India
Lab-GrownMar 20, 2025
Beyond Jewelry: Possibilities in the Lab-Grown Diamond Sector

As lab-grown diamond brands pop up across India, academics are researching how to grow demand outside of the jewelry industry.

Lab-grown diamond engagement ring
MajorsMar 19, 2025
Signet Jewelers to Close Stores, Cut Staff Amid Declining Sales

The moves are part of the retailer’s new turnaround plan, “Grow Brand Love,” which also includes emphasizing brand loyalty over store banners.

Zoë Kravitz in Rush Hour Collection
CollectionsMar 19, 2025
Jessica McCormack’s New Collection Elevates Office Wear

The “Rush Hour” campaign stars Zoë Kravitz in bold, wearable pieces designed to make a statement in the workplace.

Gallet Flying Officer watch
WatchesMar 19, 2025
Breitling Acquires Another Watch Brand From the 1800s

Breitling is reviving Gallet, which was founded in 1826 and is known for making watches used in the early days of long-distance travel.

Mediterranean Blue diamond
AuctionsMar 19, 2025
10-Carat Fancy Vivid Blue Diamond Expected to Sell for $20M

Dubbed the “Mediterranean Blue,” this “remarkably rare” diamond will be part of Sotheby’s May jewelry auction in Geneva.

American Gem Society Jewelry Evaluation Advisor logo
MajorsMar 19, 2025
AGS Adds New Program, Relaunches CSA

The American Gem Society now offers a Jewelry Evaluation Advisor designation as well as an updated Certified Sales Associate designation.

Beck pieces created for residency at Trove
CollectionsMar 18, 2025
Beck Debuts New Collection as Trove’s Latest Designer-in-Residence

Rebecca Zeijdel-Paz created more than 75 new pieces for the residency, which will be on display at Trove’s store in New York through April.

National Jeweler columnist Peter Smith
ColumnistsMar 18, 2025
Peter Smith: The Importance of Culture in Hiring

Smith explores why a qualified candidate might still not be right for the job.

Finks Jewelers Emmy award
Events & AwardsMar 18, 2025
Fink’s Jewelers Is Now a Regional Emmy Winner

The company and its marketing agency, Loudr, were recognized for the “Make You Dance” marketing campaign.

Citizen premiere
WatchesMar 18, 2025
Citizen Announces New Modern Luxury Watch Category

The “Series8” and “Attesa” collections will be grouped under Citizen Premier.

Borsheims Assistant IT Manager David Fager
MajorsMar 18, 2025
Borsheims Names New Assistant IT Manager

David Fager, a former systems engineer at the retailer, was promoted to the role.

The 2025 Gem Awards
Events & AwardsMar 17, 2025
Gem Awards Honor All Facets of the Industry

From retailers to designers and the media, the fine jewelry industry recognized one another’s work and looked to the future.

Eleanor H. Yeh GIA jewelry design
Events & AwardsMar 17, 2025
GIA Names Winner of Emerging Jewelry Design Talent Award

Eleanor H. Yeh is the recipient of the eighth annual Gianmaria Buccellati Foundation Award for Excellence in Jewelry Design.

 Joseph Cavalcante Tous managing director
MajorsMar 17, 2025
Tous Names U.S. Managing Director, VP

Joseph Cavalcante takes on the dual role as the Spanish jewelry brand looks to expand further into the U.S. market.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy