Financials

Brilliant Earth Sees Slight Increase in Q2 Sales

FinancialsAug 10, 2023

Brilliant Earth Sees Slight Increase in Q2 Sales

The retailer reported a record-breaking number of orders for the quarter amid strong Mother’s Day sales but average order value declined.

Brilliant Earth Bloom drop earring
A pair of earrings from Brilliant Earth’s new collaboration with Logan Hollowell Fine Jewelry. Brilliant Earth posted muted sales growth in Q2, but reported a record number of orders for the quarter.
San Francisco—Brilliant Earth reported positive second-quarter results Wednesday evening, once again reaching a record number of orders.

“During the quarter, we delivered our best Mother’s Day gifting performance in our history while also continuing to grow our market share and expanding our showroom footprint,” said CEO Beth Gerstein in a statement.

The retailer plans to have 35 showrooms in total by the end of this fiscal year.

Here are five key takeaways from Brilliant Earth’s second-quarter results.

Brilliant Earth took more orders in Q2 but the average value of each sale was lower.

Net sales in the second quarter, which ended June 30, rose 1 percent year-over-year to $110.2 million.

For the first half of the year, net sales totaled $207.9 million, down slightly from $208.8 million in the previous year.

Net income in the second quarter was $1.2 million, compared to $3.8 million in the previous second quarter.

Gross profit was $63.5 million, or a 58 percent gross profit margin, compared to $57.8 million, or a 53 percent gross profit margin, in the prior-year period.

The total number of orders in the quarter climbed 21 percent, while the average order value (AOV) fell 16 percent. For the first half of the year, total orders climbed 16 percent while AOV fell 14 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 brings down its AOV.

“We delivered a strong second quarter, highlighted by: increased revenue with sustained growth on a four-year CAGR basis; expansion in gross margin and an adjusted EBITDA that exceeded our expectations, reflecting the increasing resonance of our premium brand, the agility with which we execute and the advantages of our asset light, data-driven operating model,” said Gerstein.
           
In bridal, under $10,000 was a key price point.

Brilliant Earth is faced with tough comps in fiscal 2023, competing with last year’s “year of the wedding” results.

“We entered the year anticipating a degree of normalization in weddings, and we’ve continued to see that play out,” Gerstein said on the company’s earnings call Wednesday evening.

In the second quarter, the brand saw growth in the under-$10,000 price range, noting its growing brand recognition with the millennial and Gen Z audiences.

As the summer wedding season kicked off, it posted double-digit growth in men’s wedding bands, which it touted as a testament to its brand resonances across genders.

“With respect to bridal trends, we are anticipating a return to a more normalization of industry growth rates towards the end of the year,” Chief Financial Officer Jeff Kuo said on the call.

“We are consistently gaining share in the industry, and this is reflected in the strong brand lines that we have, the strong order growth rates that we have. And so that normalization, the continued strength of the brand and traction with millennial and Gen Z customers are embedded in our guidance.  We are very well positioned for long-term growth and long-term share gains as we’re still early in the journey of a very large $300 billion industry.”

The retailer turned to social media influencers to boost its bridal selection, tapping Bachelor franchise stars Dean Unglert and Caelynn Miller-Keyes and “Big Brother” cast member Corey Brooks.

As for its bridal offerings, the company’s most recent addition to its bridal assortment was a collaboration with Tacori, introducing the “Lunetta Crescent” bridal jewelry collection in July.

In May, the retailer debuted  its “Mosaics” collection, which mixes and matches fancy diamond shapes for both fashion and bridal jewelry. The 18-piece collection features both natural and lab-grown diamonds.

 Related stories will be right here … 

Non-bridal fine jewelry sales are going strong.

Though best known for its bridal offerings, Brilliant Earth has also been expanding its selection of jewelry outside of engagement rings and wedding bands.

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

Most recently, Brilliant Earth partnered with L.A.-based designer Logan Hollowell Fine Jewelry on “Secret Garden,” a new floral-inspired capsule collection featuring all lab-grown gemstones.

“We’re seizing the opportunity to attract new and repeat customers with a thoughtful balance of both classic and on-trend jewelry,” said Gerstein.

In the previous fiscal year, one-third of its new customers bought non-bridal fine jewelry.

Its bestsellers include personalized jewelry, like nameplate necklaces, reversible hoop earrings, wrap rings, and accented chains.

Its store network expansion continues.

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

Most recently, Brilliant Earth opened two new showrooms in Fairfax, Virginia’s Mosaic District in May, and in the Fulton Market in Chicago in June.

It also announced plans for two additional openings in Walnut Creek, California, and in the Coconut Grove area of Miami, bringing its total store count in the United States to 34.

The company plans to have 35 showrooms by the end of the fiscal year.

“We continue to test, learn and refine our showroom experiences, and we’ll soon open our first indoor mall-based showroom in King of Prussia, Pennsylvania, the first of three indoor mall showrooms that will open soon,” said Gerstein.

Though Gerstein acknowledged an indoor mall location is somewhat off-brand for the retailer, which typically opens standalone stores, Gerstein said she’d seen some convincing data.

“We think this is going to give us a chance to launch in some of the best malls in the country and help to see some of the other benefits in terms of driving awareness while still seeing very compelling economics and still offering a really premium customer experience,” she said.

Brilliant Earth is feeling positive about the second half of the fiscal year.

For fiscal 2023, Brilliant Earth reiterated its prior guidance of $460 million to $490 million in net sales, up from last year’s total of $439.9 million.

Adjusted EBITDA was raised to $22 million to $35 million from its prior guidance of $17 million to $32 million, boosting its profitability outlook.

The adjustment reflects “a balanced approach of continued prudent investments to gain market share while managing the business for profitability,” said Kuo.

Gerstein looked to the fiscal year ahead with optimism.

“We enter the second half of the year with positive momentum for our brand, strong demand for our distinct and curated bridal and fine jewelry, and continued confidence in our full-year growth goals,” she said in a statement.

The Latest

Supplier BulletinSep 18, 2025
Will Your Design Define 2026? Enter The Spectrum & Cutting Edge Awards

Sponsored by American Gem Trade Association

Stock image of a woman shopping online with credit card
SurveysSep 18, 2025
Deloitte Thinks the Holidays Will Be Merry, PwC Isn’t So Sure

In its holiday report, PwC said the season will be more like jazz—improvisational and less predictable—than an easy-to-follow melody.

Pandora distribution facility Maryland rendering
MajorsSep 18, 2025
Pandora to Open New Distribution Center in Maryland

The jewelry giant will relocate its existing facility to a larger space in Anne Arundel.

reDollar-fine-jewelry-department.jpg
Brought to you by
reDollar.com Is Rolling Out the Next Level Jewelry, Diamond & Watch Consignment Program

With their unmatched services and low fees, reDollar.com is challenging some big names in the online consignment world.

Garçon New York Campaign Imagery
CollectionsSep 18, 2025
Ashley Zhang Launches Garçon New York

The designer, who is the creative force behind her namesake brand, has now started a new mini line focusing on chains for fathers and sons.

Weekly QuizSep 12, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Swiss Gemmological Institute SSEF
SourcingSep 18, 2025
SSEF Opens Applications for 2 Gemology Education Scholarships

The awards include tuition for a course at the Swiss lab, economy flights, and hotel accommodation.

Hill & Co. AI Strategy Graphic
TechnologySep 18, 2025
Hill & Co. Launches AI Strategy Program

The 21-day program was designed to help jewelry retailers identify opportunities and eliminate inefficiencies with AI.

japac-btyb.png
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key Issues

Jewelers of America is leading the charge to protect the industry amidst rising economic threats.

Set of four Patek Philippe “Star Caliber 2000” pocket watches
AuctionsSep 17, 2025
Mythical Set of Patek Philippe Pocket Watches Expected to Sell for $10M+

A set of four Patek Philippe “Star Caliber 2000” pocket watches is part of Sotheby’s upcoming auction in Abu Dhabi.

Journey of a Jeweler by Silvia Furmanovich
TrendsSep 17, 2025
Silvia Furmanovich’s Book Tells the ‘Journey of a Jeweler’

The Brazilian jeweler’s latest book marks her namesake brand’s 25th anniversary and tells the tale of her worldwide collaborations.

1978 Rolex Submariner Ref. 1680 Tiffany Dial
WatchesSep 17, 2025
Bob’s Watches Acquires Vintage Rolex Won on ‘The Price is Right’

The Submariner Ref. 1680 with a Tiffany & Co. dial came from the original owner, who won it as a prize on the game show in the 1970s.

Jewelers Mutual Group logo
TechnologySep 17, 2025
Jewelers Mutual Launches Shipping Solution App for Shopify

The new integration allows users to manage shipments directly from the Shopify dashboard.

Shot of one of the pools at the Omni La Costa Resort & Spa in Carlsbad, California
EditorsSep 16, 2025
Out & About: 7 Great Quotes From Converge in Carlsbad

At Converge 2025, Editor-in-Chief Michelle Graff attended sessions on DEI, tariffs, security, and more. Here are her top takeaways.

Crime police cars
CrimeSep 16, 2025
2 Robbery Suspects Killed in California Pawn Shop Shootout

Six people were shot last week at an Oakland cash-for-gold shop as employees exchanged gunfire with individuals trying to rob the store.

Chopard Ice Cube Modular Necklace
CollectionsSep 16, 2025
Chopard Adds New Designs to Its ‘Ice Cube’ Capsule Collection

The jeweler has expanded its high jewelry offering, which launched last year, with new pieces featuring its cube motif that debuted in 1999.

Natural Diamond Council Retailer Accreditation Program seal
SourcingSep 16, 2025
Natural Diamond Council Launches Retailer Accreditation Program

Ben Bridge Jeweler and Lux Bond & Green were a part of the pilot program. 

Kristen Bell, Angela Bassett, Lisa Manobal
EditorsSep 15, 2025
Skipping the Necklace, Embracing Snakes: The Best Jewelry From the 2025 Emmy Awards

Associate Editor Natalie Francisco shares eight of her favorite jewelry looks from the 77th annual Primetime Emmy Awards, held Sunday night.

Holiday presents in gift boxes
SurveysSep 15, 2025
Resilient Shoppers to Boost Holiday Retail Sales, Says Deloitte

It’s predicting a rise in retail sales this holiday season despite economic uncertainty and elevated inflation.

Buffalo Emerald
SourcingSep 15, 2025
Gemfields Achieves $32M at High-Quality Emerald Auction

It included the sale of the 11,685-carat “Imboo” emerald that was recently discovered at Kagem.

8.33-carat emerald-cut no-oil Brazilian emerald, A. Kleiman & Co.
SourcingSep 15, 2025
AGTA Elects 8 Members to Board of Directors

The newly elected directors will officially take office in February 2026 and will be introduced at the organization’s membership meeting.

Rough montana sapphire
EditorsSep 12, 2025
Out & About: Mining Sapphires in Rock Creek, Montana

Associate Editor Lauren McLemore headed out West for a visit to Potentate Mining’s operation hosted by gemstone wholesaler Parlé Gems.

Arunashi Fordite and Rhodolite Earrings
TrendsSep 12, 2025
Piece of the Week: Arunashi’s Fordite and Rhodolite Earrings

Fordite is a man-made material created from the layers of dried enamel paint that dripped onto the floors of automotive factories.

Susan Jacques and Al Gilbertson
Events & AwardsSep 12, 2025
Al Gilbertson Wins 2025 Robert M. Shipley Award

Gilbertson has worked as a researcher, jeweler, lapidary artist, appraiser, and business owner throughout his decades in the industry.

Supreme Court stock image
Policies & IssuesSep 11, 2025
Supreme Court to Hear Tariffs Case in November

A decision likely won’t come until January 2026 at the earliest, and the tariffs remain in effect until then.

Tabayer’s Nordstrom Shop-in-Shop
MajorsSep 11, 2025
Tabayer Opens Nordstrom Shop-In-Shop

Located in the revamped jewelry hall at the retailer’s New York City flagship, this opening is Tabayer’s first shop-in-shop.

De Beers education app on mobile phone
SourcingSep 11, 2025
Need to Sell More Natural Diamonds? De Beers Has an App for That

The new, free app offers accessible educational content, like games and podcasts, for U.S. retailers.

Gold jewelry on a scale
MajorsSep 10, 2025
Stuller to Swap Gold Scrap for Full Credit to Account

As the gold price rises, the manufacturer is offering a 100 percent payout through Sept. 30 for gold clean scrap.

×

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