FinancialsFeb 15, 2023
Boucheron, Pomellato Post ‘Outstanding' Year for KeringFinancialsMar 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.
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 …
“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.
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.
More on Financials
The Latest
ColumnistsJan 21, 2025
Peter Smith: Sales Training’s Dirty Little SecretPeter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.
TrendsJan 21, 2025
Amanda’s Style File: Decadent Mocha MoussePantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.
Policies & IssuesJan 21, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
SourcingJan 21, 2025
Diamonds Do Good Adds 2 Board MembersJulia Hackman Chafé and Monica Elias have joined the organization’s board of directors.
Weekly QuizJan 16, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ NecklaceThe necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer AwardJameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth LocationThe 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.
WatchesJan 16, 2025
Timex Launches Collection of National Park WatchesThe watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.
AuctionsJan 16, 2025
Elizabeth Taylor’s Diamond Line Bracelet Going up for Auction Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.
Events & AwardsJan 16, 2025
JCK Las Vegas 2025 Open for RegistrationThe jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.
EditorsJan 15, 2025
The Jewelry I’d Bid On in Christie’s Iris Apfel AuctionAssociate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.
MajorsJan 15, 2025
Macy’s to Close 66 Stores as Part of Turnaround StrategyThe closures are part of the retailer’s plan to close 150 locations over a three-year period.
Policies & IssuesJan 15, 2025
JVC Debuts Guide to Americans with Disabilities Act ComplianceThe online guide is available for free and written with the jewelry industry in mind.
Events & AwardsJan 15, 2025
Jose Hess Design Awards Open for SubmissionsThe awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.
GradingJan 14, 2025
GIA CEO, President Susan Jacques to Retire at the End of 2025The grading lab said the search for her successor is underway.
ColumnistsJan 14, 2025
Jules Kim: Building Bridges Between Creators and IndustryIn this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.
GradingJan 14, 2025
Former SSEF Director Henry A. Hänni DiesA pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.
MajorsJan 14, 2025
Edouard Schneider Joins Messika as Chief Brand OfficerSchneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.
SourcingJan 13, 2025
Zambia Reinstates 15% Export Duty on Precious Gemstones, Shocking GemfieldsGemfields said the Zambian government revoked the 2019 suspension of the tax with no warning.
TechnologyJan 13, 2025
Ultrahuman Unveils Luxury Smart RingWith versions in 18-karat gold and platinum, the wearables company is blending health technology and fine jewelry.
Policies & IssuesJan 13, 2025
Brandee Dallow Elected President of Ethical MetalsmithsThe executive brings more than two decades of industry experience to the role.
IndependentsJan 13, 2025
The Seven Pops Up in Palm BeachThe New York City-based retailer is bringing its curation of jewels to a pop-up shop at Love Binetti in Palm Beach, Florida.
Policies & IssuesJan 10, 2025
Jewelers Relief Fund Reopened to Aid Victims of LA Fires Created by JA and DCA, the fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.
TrendsJan 10, 2025
Piece of the Week: Elsa Jin’s ‘Mozi’ BroochAdrien Brody received his first Golden Globe while wearing the “Mozi” brooch, which depicts a spill of traditional Chinese calligraphy ink.
SourcingJan 10, 2025
De Beers, GJEPC Partner to Promote Natural DiamondsThe pair will work together to support independent retailers in India with marketing assets, training materials, and other tools.
