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

Sally Nelson Exclusively Diamonds
IndependentsSep 26, 2023
Sally Nelson, Founder of Exclusively Diamonds, Dies at 86

The former teacher, described as “a pioneer for women-owned businesses,” opened her own jewelry store in 1980.

Instore show logo
Events & AwardsSep 26, 2023
Instore Announces Dates for 2024 Show

The annual event will return to Rosemont, Illinois next August.

Gold holiday gift boxes
SurveysSep 26, 2023
Mastercard Makes Its 2023 Holiday Prediction

According to SpendingPulse, retail sales will increase in November and December but not necessarily for jewelers.

Brought to you by
Top 5 Ways to Promote Safety and Security Awareness Among Your Staff

Awareness is essential to proactive protection. Learn how to promote and maintain safety and security awareness in your business.

Citizen Tsuki-yomi A-T moon phase watch
WatchesSep 26, 2023
Citizen Launches the Tsuki-Yomi A-T Timepiece

According to the watchmaker, it features the first light-powered atomic timekeeping moon phase movement.

Weekly QuizSep 21, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Crescendo, a 147.96-carat golden citrine by John Dyer for Somewhere In The Rainbow
Events & AwardsSep 26, 2023
2023 Spectrum Awards Entry Deadline Extended

The contest is now open for submissions until Oct. 10.

Stock image of hands in handcuffs
CrimeSep 25, 2023
Oregon Jeweler Accused of Selling Lab-Grown Diamonds as Natural

Police say Douglas Wayne Gamble also swapped natural diamonds for synthetic stones and failed to return customers’ repairs.

Dialog Solutions
Brought to you by
A Conversation with Dialog Solutions

Do you always want the right diamonds at the right price in your store? Introducing Dialog, the world’s first diamond subscription service.

Neil Lane lab-grown diamond engagement rings for Kay Jewelers
Lab-GrownSep 25, 2023
Neil Lane’s Latest Collection Uses Lab-Grown Diamonds

The designer just launched a new bridal range at Kay Jewelers.

Yunjo Lee
MajorsSep 25, 2023
Hearts On Fire Taps Mejuri Exec as CCO

Yunjo Lee has also worked on collections for Tiffany & Co. with Paloma Picasso and Frank Gehry.

Steve Levine of Sylvie Jewelry
MajorsSep 25, 2023
Second Generation Takes On New Roles at Sylvie Jewelry

Steve Levine joins the family-owned company, while his brother Gary has a new position.

David Yurman Paris flagship
MajorsSep 22, 2023
David Yurman Alleges These Two Companies Copied Its Designs

The company has filed complaints against Royal Chain and Samuel B.

Yun Yun Sun toi et moi diamond Puzzle ring
TrendsSep 22, 2023
Piece of the Week: Yun Yun Sun’s ‘Puzzle’ Ring

The two-stone style benefits from two-toned metal.

Mineral display at HardRock Summit 2023
Events & AwardsSep 22, 2023
HardRock Summit To Relocate In 2024

The event is moving just outside of Denver.

Timex ReWound video screenshot
WatchesSep 21, 2023
Timex Wants Your Old Watch

The company just rolled out “Timex Rewound,” a new takeback and resale program.

GIA logo
GradingSep 21, 2023
Retailers Warned About Fraudulent Email Purportedly From GIA

The lab confirmed it did not send the message.

Reginald Brack
AuctionsSep 21, 2023
Hindman Appoints New SVP, Director of Jewelry and Watches

Reginald Brack has worked at StockX and Christie’s.

Natural Diamond Council brand ambassador Lily James
SourcingSep 21, 2023
Natural Diamond Council’s Latest Campaign With Lily James Is Here

The second installment of “To Treasure Now and Forever” is intended to emphasize diamonds’ versatility.

The Artistry Ltd. 2024 catalog cover
MajorsSep 21, 2023
Artistry’s 2024 Catalog Has Shipped

It features colored gemstone, pearl, diamond, gold, and sterling silver jewelry styles.

Stock image of diamonds
SourcingSep 20, 2023
Natural Diamond Outlook: Indian Diamantaires Navigating Multiple Storms

Economic slowdowns, geopolitical tensions, and the rising popularity of lab-grown diamonds are clouding the outlook for mined diamonds.

Chemical vapor deposition reactors
Lab-GrownSep 20, 2023
Lab-Grown Diamond Outlook: Price Declines Aren’t a Deterrent

Some Indian manufacturers think the potential in this young, evolving market outweighs current price concerns.

The new Surat Diamond Bourse
SourcingSep 20, 2023
New Surat Diamond Bourse To Be World’s Largest Office Complex

The massive space spans 7.1 million square feet with more than 4,000 offices and 131 elevators.

Sahyog entrance
Policies & IssuesSep 20, 2023
Creating a Brighter Future for the Differently Abled

GIA is among the supporters of a new school building for children with special needs.

Online holiday season shopping
SurveysSep 20, 2023
Why Bain and Deloitte Think Sales Will Grow This Holiday Season

From holiday spending to inflation’s impact, here’s what analysts are forecasting for the season.

Tiffany & Co. X Rimowa collaboration suitcase and jewelry boxes
MajorsSep 20, 2023
Tiffany Collabs With Fellow LVMH-Owned Rimowa

The jeweler and luxury luggage company have teamed up on jewelry cases and a suitcase.

Navneet Gems and Minerals portrait-cut ruby
GradingSep 20, 2023
Navneet Gems Introduces Portrait-Cut Rubies

The geometric collection is on view now at the Jewellery & Gem World Hong Kong Show.

Bleu Royal diamond
AuctionsSep 19, 2023
‘Bleu Royal’ Diamond to Fetch $35M-$50M at Auction

The 17.61-carat stone leads Christie’s “Magnificent Jewels” sale in Geneva this November.


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

Additionally, paste this code immediately after the opening  tag: