Brilliant Earth’s Q3 Sales Fall 13%
Plus, CEO Beth Gerstein shares her insight on the holiday season and the possibility of new tariffs.

On an earnings call Thursday evening, Chief Financial Officer Jeff Kuo said, “We’re pleased to report a quarter where we continued to successfully drive our strategic initiatives, innovate, meet our top-line expectations, and far exceed our profitability expectations, even in the face of industry headwinds.”
Net sales in the third quarter ending Sept. 30 fell 13 percent year-over-year to $99.9 million, in line with its forecast.
For the first nine months of the year, net sales totaled $302.6 million, down 6 percent.
Notably, Brilliant Earth has been growing its non-bridal fine jewelry offerings, recently introducing a collection with conservationist Jane Goodall.
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 slipped 1 percent, while AOV fell 12 percent. For the first nine months of the year, total orders climbed 5 percent while AOV fell 11 percent.
“We continue to have a strong performance in our fine jewelry sales, including encouraging repeat purchase trends, which we see as a positive indicator going into the most important seasonal quarter for fine jewelry,” said Gerstein on the call.
As for its bridal jewelry, Kuo said the company expects that engagements will continue their gradual path to normalization.
Gerstein noted it has seen sequential improvement in engagement ring bookings at its showrooms.
“As we’re continuing to invest in our brand, we are seeing improvement within bridal as well as outside bridal overall,” she said.
Net loss in the third quarter was $1.1 million compared with a net income of $2 million in the prior-year period.
For the first nine months of the year, net income totaled $1.4 million, down 51 percent year-over-year.
Kuo noted on the call that the company has had increased employee costs due to a larger showroom footprint.
During the quarter, the company opened its second Boston location in Chestnut Hill, with a third location to open in the city in the coming weeks. It also recently opened its first ground-level store in New York City’s NoLiTa neighborhood.
The jewelry retailer plans to have 40 locations by the end of the year.
Gross profit in the quarter was $60.8 million, or a 61 percent gross profit margin, compared to $66.8 million, or a 59 percent gross profit margin, in the prior-year period.
For the first nine months of the year, gross profit was $183.2 million, or a 61 percent gross profit margin, down slightly compared to $184 million, or a 57 percent gross profit margin, in the prior-year period.
As for the holiday season, Gerstein said the retailer is well-positioned for success due in part to its increased footprint, allowing it to cater to last-minute shoppers.
Its holiday gift guides will highlight several of its fine jewelry collections, including “Sol,” Zodiac,” “Jane Goodall,” and diamond essentials.
On the topic of potential tariffs, Gerstein said, “Because we have a very diverse supply chain, I feel comfortable that we’re able to adapt quickly depending on what we see as it relates to tariffs,” adding the company has dealt with this before during the COVID-19 pandemic.
Looking to the fiscal year ahead, Brilliant Earth is reiterating its forecast of full-year net sales of $410 million to $425 million.
Adjusted EBITDA is expected to be in the range of $14 million to $16 million, raised from its previous guidance of $12 million to $16 million.
Kuo attributed the EBITDA raise in part to its ability to manage operating expenses, including its marketing spend.
The retailer has said its Q4 performance is expected to be stronger than Q3 from a top-line perspective.
“We expect Q4 to come in stronger and we also feel like we’re very well-positioned as we see an increase in demand to be able to react very quickly and very nimbly,” said Gerstein.
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