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

National Jeweler columnist Peter Smith
ColumnistsFeb 20, 2024
Squirrel Spotting: Life After Rolex

Peter Smith shares advice from independent jewelers who used losing this cornerstone brand as a catalyst for reinvention.

Neile Adams McQueen and Steve McQueen
AuctionsFeb 20, 2024
Jewels from Neile Adams McQueen Shine at Bonhams

All 13 lots belonging to the actress and first wife of Steve McQueen sold at the recent “California Jewels” sale.

Stuller bench jeweler
Events & AwardsFeb 20, 2024
Stuller to Host Bench Jeweler Workshop in March

Registration is also open for its “Battle of the Benches” challenge.

GIA id100
Brought to you by
Full Disclosure at Your Fingertips

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

Mary Ball Gorman of Henry B. Ball Jewelers
IndependentsFeb 16, 2024
Mary Ball Gorman of Henry B. Ball Jewelers Dies at 99

Gorman was an industry trailblazer, serving as the first female treasurer of Jewelers of America.

Weekly QuizFeb 15, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Jade Ruzzo gold and diamond Tennessee Torque necklace
CollectionsFeb 16, 2024
Piece of the Week: Jade Ruzzo’s Tribute to Tennessee

The movement of the 18-karat gold and diamond “Tennessee Torque” necklace is subtle.

Jared Goff and Claudia Cividino
MajorsFeb 15, 2024
Detroit Lions’ QB Jared Goff Going to Jared

Goff, whose fans hold up “He Went to Jared” signs at games, has signed a partnership with the retailer.

flashforge pic.png
Brought to you by
WaxJet: Revolution in Jewelry Manufacturing

The WaxJet 400, recognized as the world's fastest wax printer, is bringing in a new era of precision and efficiency to industry.

De Beers Venetia diamond mine
SourcingFeb 15, 2024
De Beers’ Production Down 8% in 2023

The company recovered 31.9 million carats of diamonds in 2023, compared with 34.6 million in 2022.

Gina D’Onofrio Heritage Auctions
AuctionsFeb 15, 2024
Heritage Auctions Names New Co-Director of Fine Jewelry

Industry veteran Gina D’Onofrio has rejoined the auction house.

Indian Diamond and Colorstone Association (IDCA) awards
Events & AwardsFeb 15, 2024
IDCA Hands Out Awards in Tucson

The association also celebrated its 40th anniversary.

A selection of engagement rings
TrendsFeb 14, 2024
5 Engagement Ring Trends for 2024

From three-stone rings to fancy shapes, experts weigh in on what consumers could be looking for this year.

Boucheron Power of Couture
CollectionsFeb 14, 2024
Boucheron’s New High Jewelry Collection Pays Homage to Ceremony, History

“Power of Couture” recalls Frédéric Boucheron’s love of fabric using diamonds and rock crystal.

Rough diamonds from Gahcho Kue diamond mine
SourcingFeb 14, 2024
De Beers’ Rough Diamond Sales Improve Slightly

The diamond miner and marketer said “solid” holiday sales in the U.S. helped stabilize the industry.

Jonker I Diamonds
SourcingFeb 14, 2024
‘100 Carats’ Exhibition Opens at LA Museum

A new display at the Natural History Museum of Los Angeles County features dozens of gemstones each weighing 100 carats or more.

Grand Seiko New York City flagship
WatchesFeb 14, 2024
See Inside Grand Seiko’s New NYC Flagship

Located on Madison Avenue, the store is its largest in the world.

GIA logo
GradingFeb 14, 2024
GIA Offering Discounts on Jade Reports

The 20 percent off promotion will run through March 31.

KIL Promotions NYC Spring Jewelry and Object Show
Events & AwardsFeb 14, 2024
KIL NYC Show Returns for Spring Edition

Its second trade event will feature vintage pieces and contemporary collections.

Lydia Courteille Lips ring
TrendsFeb 13, 2024
Amanda’s Style File: Symbols of Love

When it comes to Valentine’s Day jewels, the fun doesn’t stop at hearts.

Nana and Jennifer
Events & AwardsFeb 13, 2024
First Responders Win BIJC’s Second ‘Together by Design’ Contest

The couple won a bespoke engagement ring set with a 1.44-carat fancy yellow diamond and designed by Michael Hogan.

Claire’s The Collab campaign
MajorsFeb 13, 2024
Claire’s New Campaign Is for ‘Gen Zalpha’

Its new brand ambassadors, ages 7 to 17, will have some creative control over the ad campaign, called “The Collab.”

Arch Crown 2024 Tag & Label Catalog
MajorsFeb 13, 2024
Arch Crown’s 2024 Tag & Label Catalog Is Out

The book offers solutions for all retailers’ price tagging needs, the company said.

Muzo Private Collection royal orb
SourcingFeb 12, 2024
Muzo’s Collection of Shipwrecked Emeralds Makes US Debut

The three pieces, recovered from a 17th century shipwreck, are set with emeralds from Colombia’s Muzo mine.

Frank Adams Jewelers flagship
IndependentsFeb 12, 2024
Frank Adams Jewelers Moves to New Flagship

The fourth-generation family jeweler’s new store is twice the size of its previous location.

WJA logo
MajorsFeb 12, 2024
WJA Launches First Canadian Chapter

The association also announced WJA Toronto’s board of directors.

John Hardy Naga Dragon necklace
CollectionsFeb 09, 2024
Piece of the Week: John Hardy’s Reimagined Dragon

Creative Chairman Reed Krakoff has modernized one of the brand’s most well-known motifs ahead of the Year of the Dragon.

GIA logo
GradingFeb 08, 2024
GIA Helps Recover Stolen Diamonds

The lab identified the stones when an uninvolved diamond dealer sent them in for grading.


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