Brilliant Earth Posts Strong Q3 Sales Growth

On Thursday, Brilliant Earth released its third-quarter results, which showed a strong performance driven by its non-bridal fine jewelry segment, giving the company confidence as it enters the holiday season.

Resilient sales in the face of cost pressures

During the quarter ending September 30, Brilliant Earth’s net sales reached $112.8 million, a 2 percent increase from the same period last year, surpassing the company’s forecast of no growth. For the first nine months, net sales rose 5 percent to $327.4 million. The number of orders in the third quarter increased by 6 percent, while the average order value decreased by 3 percent to $2,140. In the first nine months, the total number of orders grew by 2 percent, with an average order value of $2,170, representing a 3 percent increase.

According to CEO Beth Gerstein, the results demonstrate that consumers continue to seek high-end, design-driven jewelry. Gerstein noted that “engagement ring budgets are somewhat tighter as these considered purchases are increasingly affected by cost pressures.”

The company’s gross profit for the third quarter was $67.4 million, equivalent to a 60 percent gross profit margin, which represents a 6 percent increase compared to the previous year. For the first nine months, gross profit was $188.1 million, or a 57 percent gross profit margin, up 3 percent from the same period last year.

Expansion of product offerings beyond bridal

As Brilliant Earth continues to diversify its products beyond the bridal segment, it is experiencing strong demand for its iconic fine jewelry pieces. Recently, the company collaborated with the Elizabeth Taylor estate, House of Taylor, on a collection inspired by the style icon. Other new releases include a charms collection, additional colors for its “California” collection, and the third installment of its Jane Goodall collaboration.

Gross profit margins for high-end items, such as three-stone rings and select higher carat weight offerings, remain strong. Although the average selling price of engagement rings decreased year-over-year, the company’s strategy of targeting higher-income customers appears to be effective. A new showroom in San Antonio, Texas, opened during the third quarter and has seen strong walk-in traffic. Brilliant Earth plans to open its next location at Westfield Valley Fair in San Jose, California, in time for the holiday season.

Looking ahead to the next year, the company expects full-year sales to increase by 2.75 percent to 4 percent, with adjusted EBITDA ranging from $13 million to $15 million.