Industry / Retail

Brilliant Earth Reports Strong Second-Quarter Results


Brilliant Earth reported “outstanding” results for the second quarter of 2022 (ended June 30), with sales rising 17.8% to $108.8 million, from $92.3 million the prior year.

The San Francisco-based e-tailer’s net income for the quarter was $3.8 million; adjusted EBITDA was $9.6 million. Its gross margin was 53.1%.

In a conference call following the release of its financial results, CEO Beth Gerstein and chief financial officer Jeff Kuo told analysts the following, according to a Motley Fool transcript:

– Its fleet of 21 showrooms “has been and will continue to be a major catalyst for building our brand,” Gerstein said.

Brilliant Earth opened six new showrooms in the quarter, in Bethesda, Md.; Columbus, Ohio; Houston; Minneapolis; Cleveland; and Detroit. It hopes to have around 30 showrooms by the end of the year.

– Kuo said the company hasn’t been particularly impacted by inflation, noting that gold and platinum prices recently came down a bit.

– Its bridal sales have “moderated slightly,” but sales of wedding bands remain strong.

– Around 13% of customers learned about the brand on TikTok.

– The fine jewelry category has “massive potential,” Gerstein said. The company recently introduced a men’s fine jewelry line.

– Gerstein declined to directly comment on the hot industry news of the week: Signet’s acquisition of Blue Nile.

“We think that we are very differentiated in the industry,” she said. “We don’t have a discount orientation. We really invest in providing a luxury distinguished experience for the customer overall. The mission behind everything that we do is really important for us as a company, the same way that it’s important for our customers …

“The products that we offer are also very distinctive. We are constantly introducing new trend-driven collections, and those resonate as well with our customer base. So we’re really very focused on our own strategy and how we can resonate with the millennial and Gen Z audience.”

The company reaffirmed its full-year guidance of $450 million to $470 million in revenue—after lowering it in the first quarter.

A Brilliant Earth showroom. (Image courtesy of Brilliant Earth)

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By: Rob Bates

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