
Brilliant Earth on Wednesday reported first-quarter net sales of $99.5 million, up 6% from a year earlier and at the high end of its expectations. Orders and average order value both rose about 3% year-over-year, with higher prices contributing to the latter increase.
Fine jewelry remained a standout. According to Brilliant Earth’s first-quarter results, that category improved 33% year-over-year and accounted for 17% of total sales, reflecting the jeweler’s ongoing push beyond its core bridal business. During the Q1 earnings call, executives pointed to strength in repeat customers and demand for higher-priced pieces.
Profitability, however, remains under pressure. Brilliant Earth reported a first-quarter net loss of $8.5 million—compared with a $3.3 million loss a year earlier—while adjusted EBITDA was negative $4.7 million.
Margins were squeezed by rising metal costs. Gross margin came in at 54.3%, down from 58.6% a year earlier. On the earnings call, CFO Jeffrey Kuo said Brilliant Earth has been adjusting pricing, sourcing, and product design to offset those pressures and expects margins to improve later in the year.
Average order value in the first quarter rose 3.3% from a year ago, to $2,131, which Brilliant Earth attributed to customers trading up to higher-priced items as well as selective price increases tied to higher input costs.
The company continues to expand its brick-and-mortar locations, ending the first quarter with 42 showrooms and plans for additional stores later this year. Brilliant Earth said its recently opened Beverly Hills flagship has generated strong early traffic and sales.
On the demand side, Brilliant Earth execs described a mixed consumer environment. CEO Beth Gerstein said the brand is seeing “some signs of softness at lower price points,” while higher-end customers remain more resilient.
“We are investing heavily in the $500-plus assortment,” said Gerstein. “We are very strategically focused on that higher-value customer, and we are seeing very strong results there, growing that customer base.”
Brilliant Earth anticipates low-single-digit sales growth in the second quarter and mid-single-digit growth for the full year, as well as a return to positive adjusted EBITDA for the year overall, with most of that in the fourth quarter, usually the company’s strongest season.
The JCK News Desk uses AI to help research and produce the first draft of articles. This story was then reviewed by staff writer David Blomquist.
(Photo: Brilliant Earth)
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