Brilliant Earth Revenue Drops in ‘Promotional Environment’
Brilliant Earth’s sales slipped 1.9% year on year to $119.6 million in the fourth quarter as the consumer market slowed compared with 2021’s strong holiday season.
“We took a more conservative view of the consumer environment and chose not to participate in what we expected to be an aggressive promotional environment,” Brilliant Earth CEO Beth Gerstein said Wednesday in an earnings call, transcribed by Seeking Alpha.
Revenue was within the range of $116 million and $126 million the online-focused jeweler had projected for the period. In November, the company reduced its sales forecast for the quarter, flagging increased caution among shoppers and predicting a wave of discounting at retail stores.
By avoiding promotions and focusing on “quality revenue [and] preserving our brand integrity,” the company managed to increase its gross profit margin. However, net profit fell 46% year on year to $6.2 million.
For the full year, sales rose 16% to $439.9 million, while net profit dropped 28% to $19 million.
Image: A ring from Brilliant Earth’s Truly Brilliant collection. (Brilliant Earth)