Brilliant Earth Appeals to Higher-Income Shoppers in Q1

San Francisco—Brilliant Earth kicked off its fiscal year on a high note, with growing strength in non-bridal fine jewelry and a record Valentine’s Day performance.

On an earnings call Wednesday evening, CEO Beth Gerstein and Chief Financial Officer Jeff Kuo discussed the jeweler’s most popular fine jewelry offerings, upcoming store openings, the effect of the "K-shaped" economy on consumer spending, and its outlook on the year ahead.

For the first quarter ending March 31, the jewelry retailer posted net sales of $99.5 million, up 6 percent year-over-year and at the high end of its guidance.

“Fine jewelry was a clear standout,” said Gerstein, noting a rise in visits to its showrooms to see its non-bridal fine jewelry offerings, particularly for its “Sol” collection, which launched in 2023.

“We’re very pleased that our strategy to expand our reach with fine jewelry is paying off. While bridal remains important to our business, this diversification allows us to mitigate the varying dynamics of bridal and stay focused on quality growth,” she said.

The retailer also saw growth in wedding and anniversary bands, with growing demand for its diamond essentials.

In Q2, the company launched its “Butterfly” collection as well as its “Keepsake” collection ahead of Mother’s Day, which includes celestial-inspired lockets. More newness will follow, said Gerstein.

The total number of orders in Q1 rose 3 percent, while average order value (AOV) also rose 3 percent to $2,131.

The rise in AOV was attributed to a rise in average selling price across its assortment, said Kuo, which was driven by two factors.

“Customers are mixing into higher-priced items, reflecting our strength with the higher-income consumer. And we have made selective price increases as a result of rising metal costs,” he said.

The retailer has taken notice of the changes in spending among its customers.

“We are watching the consumer environment carefully and observing a similar bifurcation that has been widely reported across our industry and the consumer sector,” said Gerstein.

In its annual sales forecast, the National Retail Federation highlighted the bifurcation in spending between higher- and lower-income consumers. 

This is typical of what economists refer to as a “K-shaped” economy, with higher-income shoppers driving most of the spending growth across several retail categories.

The jeweler is seeing some signs of softness at its lower price points, Gerstein said, while its higher price points are “holding up well” in Q2, demonstrating the brand’s resonance with higher-income consumers.

Gerstein said the company is investing heavily in its $500 and above assortment.

“We’re very strategically focused on that higher value customer and we’re seeing very strong results there growing that customer base,” she said.

In its earnings presentation, the retailer said its primary customer is 25 to 44 years old with a household income between $100,000 to $200,000, including educated, young professionals, couples shopping together, gift givers, and self-purchasers.

Along with its collections, Brilliant Earth said its campaigns helped to drive strong results in Q1.

Its “Perfect Timing” campaign celebrated chance encounters and unexpected love stories.

It also launched the “Bridal Collective” series, a creator-hosted event series held at its showrooms.

In the first quarter, gross profit was $54.1 million, or a 54 percent gross profit margin, down 2 percent compared with the prior-year period.

It fell within expectations, noted Brilliant Earth, despite navigating headwinds in precious metal prices and tariffs.

The retailer, which celebrated its 20th anniversary last year, operates 42 showrooms as of Q1, including its new “showroom of the future” in Beverly Hills, California.

It plans to open two more stores in San Antonio, Texas, and San Jose, California, by the end of the year.

Looking to the year ahead, the company is forecasting second-quarter net sales growth to be in the positive low-single digits, with adjusted EBITDA between $500,000 to $2 million.

For the full year, the company is expecting to see net sales growth in the positive mid-single digits, with adjusted EBITDA slightly lower than in 2025, though still profitable.

Notably, its outlook assumes the metal prices will be around where they were as of May 5.

As for the year ahead, Gerstein said the company will continue to navigate the volatile metal environment through selective price changes, production engineering, and supply chain efficiencies.

“We are executing diligently on what we can control,” she said.