FinancialsNov 06, 2024
Pandora Posts Double-Digit Revenue Growth in Q3FinancialsNov 08, 2024
Brilliant Earth’s Q3 Sales Fall 13%
Plus, CEO Beth Gerstein shares her insight on the holiday season and the possibility of new tariffs.
A campaign image from Brilliant Earth’s new jewelry collection with Jane Goodall. The jewelry retailer reported net sales fell 13 percent year-over-year in its recent third quarter.
San Francisco—Brilliant Earth posted double-digit declines in net sales in the third quarter, but CEO Beth Gerstein shared a positive outlook for the holiday season.
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.
Related stories will be right here …
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.
More on Financials
The Latest
MajorsSep 02, 2025
Birks CEO Jean-Christophe Bédos Steps DownNiccolò Rossi di Montelera, executive chairman of the board, was appointed as interim CEO.
MajorsSep 02, 2025
Harry Winston Opens Its Largest Flagship in JapanThe three-floor space also features the jeweler’s largest VIP salon in Japan and offers an exclusive diamond pendant.
CollectionsSep 02, 2025
Stephanie Gottlieb Debuts Silver Designs in ‘All Hours’ CollabThe collection is a collaboration between Stephanie Gottlieb Fine Jewelry and Oak and Luna, focusing on understated essentials.
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key IssuesJewelers of America is leading the charge to protect the industry amidst rising economic threats.
AuctionsAug 29, 2025
Sotheby’s UAE Sale to Feature 32-Carat Fancy Vivid Orangy Pink DiamondThe highlight of a single-owner jewelry and watch collection, it’s estimated to fetch up to $7 million at auction this December.
Weekly QuizAug 29, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsAug 29, 2025
Piece of the Week: Mark Davis’ ‘Bullseye’ Necklace The “Bullseye” necklace, with vintage bakelite and peridot, August’s birthstone, is the perfect transitional piece as summer turns to fall.
Supplier BulletinAug 28, 2025
Clientbook Is Helping Jewelers Turn Clienteling Challenges into Wins with Hands-On Training and CoachingSponsored by Clientbook
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine JewelryAs a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.
GradingAug 28, 2025
GIA’s New ‘Quality Assessment’ for Lab-Grown Diamonds Is Coming It will classify lab-grown stones into one of two categories, “premium” or “standard,” in lieu of giving specific color and clarity grades.
SourcingAug 28, 2025
Botswana Declares Public Health Emergency Amid Diamond Sales SlumpPresident Duma Boko addressed the country’s medical supply chain crisis in a recent televised address.
MajorsAug 28, 2025
Borsheims Names New Jewelry BuyerFormer Free People buyer Afton Robertson-Kanne recently joined the retailer.
IndependentsAug 28, 2025
Sissy’s Log Cabin Donates School Supplies to Memphis StudentsThe jeweler teamed up with two local organizations for its inaugural “Back to School and Bling” event.
EditorsAug 27, 2025
Taylor Swift’s Engagement Ring Is a Fairy Tale for Vintage Diamond CutsThe singer’s new bling, reportedly a natural old mine-cut diamond, is no paper ring.
SourcingAug 27, 2025
11,685-Carat Emerald Recovered From Zambia’s Kagem MineDubbed the “Imboo,” or “buffalo,” emerald, the rough gemstone is part of Gemfields’ latest emerald auction, which is taking place now.
SurveysAug 27, 2025
Consumer Confidence Slips in August Amid Job, Income WorriesPlans for dining out, booking vacations, and buying big-ticket items were down.
CollectionsAug 27, 2025
Mined + Found’s New Collection Gets Playful The “Play” collection centers on nostalgic toys that have kinetic elements to carry playfulness and wonder into adulthood.
CollectionsAug 26, 2025
Does Your Jewelry Stack Need a Snack?Designer Christina Puchi, the creative force behind CCWW Designs, has created charms and pendants based on iconic candies and crackers.
WatchesAug 26, 2025
Nick Jonas Gets Nostalgic in New Fossil CampaignThe Jonas Brothers star showed off new timepieces against the backdrop of his favorite spots in his home state of New Jersey.
IndependentsAug 26, 2025
Hinkamp Jewelers Celebrates 70 YearsThe family-owned jeweler in Fayetteville, North Carolina, is in the hands of the second generation.
ColumnistsAug 26, 2025
Back to School, Back to Style: Why August is Prime Time for Self-GiftingIn his latest column, Emmanuel Raheb shares tips for encouraging customers to treat themselves to new jewelry.
WatchesAug 25, 2025
London Jewelers Brings Rolex to Historic Hamptons HomeThe new stand-alone Rolex boutique is housed in the former Odd Fellows Hall, a landmark built in 1897.
CollectionsAug 25, 2025
Tennis Star Madison Keys Has the Perfect Necklace for the US OpenThe Brilliant Earth ambassador co-designed a diamond medallion featuring meaningful symbols.
TrendsAug 25, 2025
Amanda’s Style File: That’s a WrapWrap jewelry is more than just a trend; it’s the perfect motif for the coming season of layering, scarves, and pumpkin spice.
WatchesAug 25, 2025
WatchTime NY Show Returns for 10th Anniversary EditionThe three-day watch collector show, coming this October, will feature 44 exhibiting brands, as well as a new dinner experience.
GradingAug 22, 2025
Former Head of GIA India Promoted to Oversee Global Operations Sriram “Ram” Natarajan is now GIA’s senior vice president of laboratory operations and is based out of the lab’s headquarters in Carlsbad.
CollectionsAug 22, 2025
Piece of the Week: Retrouvaí’s ‘Diamond Vein Bond’ CollarThe one-of-a-kind collar represents the beauty of imperfection and the strength to rebuild.
MajorsAug 22, 2025
Kendra Scott Returns as CEO of Her Jewelry EmpireThree C-suite executives, including former CEO Tom Nolan, have resigned as part of what the company describes as a “transition.”
