Brilliant Earth Lowers Guidance Following Q2 Sales Dip
The jewelry retailer is forecasting sales will fall as much as 14 percent in its third quarter.

For the second quarter ending June 30, the jewelry retailer posted net sales of $105.4 million, down 4 percent from $110.2 million in Q2 2023.
In the first half of the year, the company reported net sales of $202.8 million, down 3 percent from $207.9 million.
“I’m pleased with our ability to manage the business with agility and discipline in the face of a challenging industry and macroeconomic backdrop,” said Brilliant Earth CEO Beth Gerstein in a statement.
“We delivered quality order growth, expanded gross margin, and exceeded our profitability expectations.”
Adjusted EBITDA was $5.5 million, down 29 percent year-over-year, but exceeding the retailer’s expectations.
The results were in line with the company’s forecast of a low to mid-single-digit decline in net sales and a low single-digit percentage adjusted EBITDA margin.
For the first half, adjusted EBITDA was $10.6 million, or 5 percent of net sales, compared with $13.3 million, or 6 percent of net sales, in the prior-year period.
Net income was $1.4 million compared with $1.2 million in the prior-year period.
“While the overall industry remains challenged, particularly in bridal and e-commerce, we still maintain our expectations around a multi-year path to normalization,” Gerstein said on an earnings call held Thursday evening.
She said the industry’s “highly promotional” environment has continued, noting “elevated discounting activity” among peers, a trend that persisted in Q2 and has continued into Q3.
“We remain focused on investing in quality growth and protecting our premium brand to deliver sustainable profitability and position us to take share in this highly fragmented industry,” she said.
In the second quarter, gross profit was $64.1 million, or a 61 percent gross profit margin, compared with $63.5 million, or a 58 percent gross profit margin, in the prior-year period.
In the first half, gross profit was $122.4 million, or 60 percent of sales, up 4 percent from $117.2 million, or 56 percent of sales, in the prior-year period.
The total number of orders in the second quarter rose 4 percent while the average order value (AOV) fell 8 percent to $2,374.
Repeat orders were up 17 percent year-over-year in the second quarter.
For the first half, the total number of orders rose 8 percent while the AOV fell 10 percent to $2,387.
The company has noted in previous quarters that non-bridal jewelry sales are on the rise, but the category has a lower average price point, which is bringing down its AOV.
Fine jewelry bookings in its stores increased by 29 percent year-over-year in the second quarter.
“Fine jewelry offers us an incredible opportunity to acquire lifelong customers outside of our core bridal business, and to expand our reach among both first time and repeat purchasers,” said Gerstein.
The quarter included two important gifting holidays, said Gerstein, which were Mother’s Day and Father’s Day.
Excluding holiday shopping in last year’s Q4, the company said it had its biggest ever day of fine jewelry sales in the lead-up to Mother’s Day.
Bridal jewelry sales did not fare as well.
“In Q2, what we saw was that bridal was down in the low double digits, and we have seen that slightly worsen since then,” said Gerstein.
She noted there have been some positive indicators, including bookings growth of 6 percent to view engagement ring designs in its “Signature” collection.
Bookings for wedding and anniversary bands saw double-digit growth, with men’s bands seeing 32 percent year-over-year growth.
The company recently launched its Brilliant Earth Fairmined Bridal Collection, which uses Fairmined Gold to support small-scale mining communities.
Gerstein noted that customers are taking longer to make decisions on highly considered purchases in light of economic headwinds.
As bridal sales struggle, Gerstein highlighted the retailer’s diversified approach, like bolstering its fine jewelry offerings to reach new customers.
Though it started as an online-only business, Brilliant Earth has been expanding its brick-and-mortar network in recent years.
It is on track to open three new showrooms in the second half of the year, including two in Boston, at the Seaport and in Chester Hill, and its first street-level location in New York City’s Nolita neighborhood.
Looking to the year ahead, the company lowered its fiscal guidance.
For fiscal 2024, Brilliant Earth is now forecasting net sales of $410 million to $425 million, down from its prior guidance of $455 million to $469 million.
Adjusted EBITDA is expected to be $12 million to $16 million, down from its prior guidance of $14 million to $22 million.
For the third quarter, the company is expecting net sales to fall 11 to 14 percent year-over-year while adjusted EBITDA will either break even or have a low single-digit percentage adjusted EBITDA margin.
Chief Financial Officer Jeff Kuo said its Q4 performance is expected to be stronger than Q3 from a top-line perspective.
“Key drivers of Q4 performance will include realizing uplift from showrooms, the continued strong performance of fine jewelry, the fact that Q4 is the biggest quarter for fine jewelry sales, and our ongoing brand building efforts, including during the holidays,” said Kuo.
Gerstein said, “Since June, we’ve encountered a weaker-than-expected consumer environment, specifically for highly considered purchases, and we remain cautious for the rest of this year, given the recent headlines and economic uncertainty.”
“We recognize that this is a challenging period, and we are not immune to its impact,” she said, adding the company will continue to lean on the strength of its brand.
The Latest

The trio of Advent calendars include a version with 18-karat gold and lab-grown diamond jewelry in a red lacquer jewelry box.

Created in collaboration with Nymphenburg Porcelain, the lock is part of a four-piece collection that took two years to bring to fruition.

Jewelry industry veteran Alisa Bunger has taken on the role.

The upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.

The company and industry leader’s two-decade tenure with De Beers will come to a close at the end of the month.


“The Winter Egg” set the world auction record for a Fabergé piece twice at previous Christie’s sales.

The company will pay 1.5x silver’s current spot price for each pound of silver oxide batteries submitted.

The line includes a “Shadow” series crafted exclusively for the new men’s offering and reimagined styles from the brand’s core collections.

The rough on offer was recovered from a newer area at the Montepuez mine.

The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.

The champagne colorway in her newest “Ombré” collection combines white and trendy brown diamonds, a departure from her usual vibrant hues.

Kosann partnered with the Museum of Fine Arts, Boston, to create a set of necklaces inspired by the artwork on samurai sword handguards.

Carlos Jose Hernandez and Joshua Zuazo face life in prison for the October 2024 murder of 72-year-old Detroit-area jeweler Hussein Murray.

The brand’s first high jewelry collection, “Tempest” plays with movement while calling to mind the folklore of the sea.

Proceeds from its jewelry raffle will go to a volunteer-run fire and rescue group in the Lightning Ridge area of New South Wales, Australia.

Stuller said the recipients embody the company’s core values, which include community participation and personal and professional growth.

Citizen’s new “Rainell” women’s watch has a raindrop-shaped case and is available with a silver-, gold-, purple-, or green-colored dial.

The “Mercedes Gleitze Rolex Oyster,” named for the British endurance swimmer who made it famous, will go up for sale next month.

Amit Pratihari was previously the managing director of De Beers India and Forevermark India.

Members of the Jewelers 24 Karat Club of Southern California will gain access to expanded services, resources, and connections, DCWC said.

Gomez’s jewelry included Tiffany & Co. drop-style earrings while Blanco stacked diamonds from Jacob & Co. on his wrist.

Diamond industry banking veteran Paul De Wachter will take on the role in January 2026.

Taylor Swift flaunts an Elizabeth Taylor-esque gemstone in promo for her new album, “The Life of a Showgirl.”

Its “Quantre Sand” capsule was made using a 3D sand printing technique borrowed from the automotive and aeronautics industries.

Four individuals have been charged in the “takeover-style” robbery of Heller Jewelers last month, and additional charges are expected.

“Radiance and Reverie” will showcase more than 150 jewels from Lane’s personal collection by Tiffany & Co., Cartier, and more.