Brilliant Earth delivered mixed results in the second quarter of 2024 (ended June 28), as sales fell but profits rose.
The San Francisco–based company reported second-quarter sales of $105.4 million, a 4% drop from the same period last year. The decline, in line with prior guidance, came amid a 3.6% year-over-year rise in total orders. The culprit was a 7.7% drop in average order value—which came in at $2,374 in the second quarter, compared with $ 2,571 the year before.
Net income for the quarter was $1.4 million, up from $1.2 million during 2023’s second quarter.
The e-tailer also announced plans to open three new showrooms in the second half of this year: two in Boston and its first street-level location in New York City (in the Nolita neighborhood). That will bring the company’s showroom fleet to 40.
In an earnings call following release of Brilliant Earth’s financial results, CEO Beth Gerstein said, “We continue to observe challenges within the $300 billion jewelry industry.”
She noted the industry was experiencing a “highly promotional environment” with “continued discounting among peers.”
But Brillliant Earth is resisting that trend, according to Gerstein: “Our approach is to not chase nonprofitable growth.”
She said that “since June, we have encountered a weaker-than-expected consumer environment, specifically for highly considered purchases, and we remain cautious for the rest of the year, given recent headwinds and economic uncertainty.”
That caution is reflected in the company’s outlook, as it predicted sales will tumble 11%–14% in the third quarter from the prior year.
Top: a Brilliant Earth showroom (courtesy of Brilliant Earth)
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