Brilliant Earth Reports Record Revenue for 2023

Brilliant Earth’s sales grew 4% year on year to $124.3 million in the fourth quarter amid a record number of orders.

The 18% increase in individual orders offset a 12% decline in the average value per sale during the three months that ended December 31, the retailer said last week. Net profit for the period fell 69% to $1.9 million.

Engagement rings were one of the top sellers for the company, with demand for those above $10,000 increasing year-on-year in the fourth quarter, Brilliant Earth CEO Beth Gerstein said last week in an earnings call, transcribed by Seeking Alpha. The average sales price for engagement rings was up 4% year-on-year during the three months.

Additionally, new campaigns featuring celebrities and influencers brought in consumers. The launch of Brilliant Earth’s Sol collection, in partnership with Emmy-nominated actress Camilla Morrone, proved popular, with productivity “far outpacing” that of prior collection launches, Gerstein explained. The company’s new lab-grown Capture collection, made with synthetic diamonds manufactured using 100% renewable energy, also “resonated strongly” with consumers, it said.

For the full-year, sales rose 1.5% to $446.4 million, while net profit dropped 75% to $4.7 million.

Brilliant Earth expects sales for the first quarter of 2024 to reach between $96.5 million and $98.5 million, ranging from a decrease of 1% to growth of 1%, chief financial officer Jeff Kuo noted on the earnings call. For the full year, net sales are anticipated to rise 2% to 5% to between $455 million and $469 million.

Source: DCLA

Brilliant Earth Warns of Caution Among Consumers

 

              A Brilliant Earth showroom

Brilliant Earth lowered its outlook ahead of the crucial fourth quarter, noting that consumers were hesitant about making purchases.

The online-focused jeweler expects full-year sales of $436 million to $446 million, down from an earlier forecast of $450 million to $470 million, it said Thursday. Fourth-quarter revenue will be between $116 million and $126 million, compared with actual sales of $121.9 million a year earlier. The US company’s shares fell 26% Thursday following the news.

“While we’re pleased that we have continued to drive sustainable, profitable growth, as we look to finish the year, macro headwinds and the anticipated promotional environment are more difficult than earlier in the year, causing us to be more cautious about our fourth-quarter revenue outlook,” CEO Beth Gerstein said on an investor call transcribed by Seeking Alpha. “While we are still seeing strong consumer interest demonstrating the resonance of our brand, we are seeing a further lengthening of the decision-making process given the macroeconomic uncertainty as more customers take a wait-and-see approach.”

The adjustment came even as third-quarter sales rose 17% year on year to $111.4 million, reflecting the brand’s increased success among millennials and Gen Z-ers, the retailer reported. The company ratcheted up its use of TikTok after a study found that 13% of its customers learned about Brilliant Earth on that social platform; this led to a viewership increase on the site of more than 200%, management said. Group net profit jumped 44% to $5.7 million.

Source: DCLA