Brilliant Earth reported a loss in the first quarter as the average order value declined, although the company achieved record-breaking sales in the two weeks leading up to Valentine’s Day.
The company’s net loss came to $3.3 million for the three months ending March 31, the company said Tuesday. That compares with a profit of $1.1 million during the same period a year ago. Meanwhile, revenue slipped 3.5% year on year to $93.9 million.
The deficit comes even as the total number of orders grew 12% year on year and demand for engagement rings increased, the jeweler explained. Meanwhile, sales in the two weeks leading up to Valentine’s Day grew in the mid to high single digits, the company said. However, the average value per order fell 14% to $2,062.
Brilliant Earth, based in San Francisco, is predominantly an online business. However, over the past few years, the company has opened some showrooms where customers can view merchandise. During the quarter, the jeweler expanded its total number of showrooms to 41, opening its most recent location in Texas, in the Dallas-Fort Worth area.
“The positive engagement-ring unit trends, coupled with our most successful Valentine’s Day ever, reinforces our confidence in our premium brand positioning and differentiated product offerings,” said Brilliant Earth CEO Beth Gerstein.
The company predicted sales for the second quarter will see no change or a decline of up to 3% compared to the same period the year before. Sales for the full year will increase 1% to 3%, the jeweler noted.
Gerstein is not overly concerned about any negative effect on the business from tariffs, as noted on an earnings call transcript with Investing.com.
“As it relates to tariffs, we are monitoring the evolving situation closely,” she said. “We feel confident that our geographically diversified supplier base and strong supplier relationships, limited direct exposure to China, our price optimization engine, and agile data-driven team give us a competitive advantage over the industry to navigate changes in any environment. The anticipated impact of tariffs is included in our outlook for the year.”
Image: A Brilliant Earth store in Virginia. (Brilliant Earth)
