Financials

Brilliant Earth Lowers Guidance As Bridal Market Slows

FinancialsNov 13, 2023

Brilliant Earth Lowers Guidance As Bridal Market Slows

In its recent third-quarter results, CEO Beth Gerstein also shared her holiday prediction for the upcoming season.

Brilliant Earth Sol Collection
A selection of jewelry from Brilliant Earth’s new “Sol” collection. The company lowered its fiscal outlook in light of industry headwinds, including a slowdown in bridal jewelry sales.
San Francisco—Brilliant Earth posted muted sales growth in the third quarter late last week, lowering its fiscal outlook as bridal jewelry sales suffer.

“We have all seen the headwinds in the bridal market as fewer people have been getting engaged versus historical averages, and we are not immune,” said CEO Beth Gerstein during an earnings call.

Brilliant Earth has been growing its non-bridal fine jewelry offerings, recently introducing the “Sol” collection and partnering with designer Logan Hollowell.

However, non-bridal fine jewelry has a lower average price point, and so its average order value (AOV) has suffered.

The total number of orders in the quarter ending Sept. 30 climbed 17 percent, while AOV fell 12 percent. For the first nine months of the year, total orders climbed 16 percent while AOV fell 13 percent.

“As we continue growing fine jewelry, overall company AOV is expected to decrease year-over-year in Q4, particularly given that Q4 is seasonally the largest fine jewelry quarter,” said Chief Financial Officer Jeff Kuo during the call.

Net sales in the third quarter rose 2.5 percent year-over-year to $114.2 million. For the first nine months of the year, net sales totaled $322 million, up just under 1 percent.

Net income in the third quarter was $2 million, down 65 percent year-over-year. For the first nine months of the year, net income totaled $2.8 million, down 78 percent year-over-year.

The company has been increasing its marketing spend, as well as its spend on employees as it continues to grow its footprint.

Brilliant Earth surpassed its goal of at least 35 showrooms in 2023, operating 37 by the end of September, including its first indoor mall-based showrooms.

“Indoor malls are a new format for us and the next evolution of our omnichannel footprint. Early indications are positive as we have been able to engage more walk-in customers, while still providing the personalized appointments we are known for,” said Gerstein.

Gross profit in the quarter was $66.8 million, or a 59 percent gross profit margin, compared to $60.9 million, or a 55 percent gross profit margin, in the prior-year period.

For the first nine months of the year, gross profit was $184 million, or a 57 percent gross profit margin, compared to $168.9 million, or a 53 percent gross profit margin, in the prior-year period.

The company has “continued to gain substantial market share and deliver profitable growth,” said Gerstein, in spite of a “challenging year,” and may even be doing better than its competitors.

“Based on industry reports, we estimate our revenue growth has outpaced the jewelry industry by more than 1000 basis points in the third quarter,” she said.

“While we estimate the bridal market and other portions of the industry are down double digits, and others have pulled back their investments, we continue to lean in and are proud of our growth and market share gain.”

During Signet Jewelers’ most recent earnings call, the jewelry giant predicted a bridal recovery to begin later in fiscal 2024 with a more robust rebound expected in fiscal 2025. 

Looking to the fiscal year ahead, Brilliant Earth has lowered its guidance to “reflect the current normalizing jewelry industry conditions.” 

The company is forecasting full-year net sales of $444 million to $450 million, down from its prior guidance of $460 million to $490 million. 

Adjusted EBITDA was downgraded to $22 million to $24 million compared to its prior guidance of $22 million to $35 million. 

Still, Gerstein ended her remarks on a positive note as the company heads into the holiday season. 

“The bulk of the season lies ahead and we believe that we are well-positioned to deliver another profitable fourth quarter with the largest quarterly sales in our history,” she said. 

“Looking ahead to next year, I believe we are well-positioned to continue gaining market share and that the investments that we are making today will pay dividends as the industry begins to normalize.” 

The Latest

Sylvie Jewelry Auranova Collection Campaign Imagery
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection

“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.

Deborah Meyers Experience The Birds Earrings
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ Earrings

Designer Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.

Melee diamonds from De Beers
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid Uncertainty

The company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.

ejap cohort 1872x1052.png
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs

Six new retail businesses were selected for the 2025 program, which began in January.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

×

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