Brilliant Earth Slashes Full-Year Forecast Amid ‘Challenging’ Market 

Brilliant Earth has lowered its expected revenue for the full year given the weak market for diamonds and luxury goods, which has driven down the average order value. 

The company now believes its full-year revenue will reach between $410 million and $425 million, versus its earlier announcement of $455 million to $469 million, the e-commerce-focused jeweler reported last week. It has also reduced its expected earnings before interest, taxes, depreciation and amortization (EBITDA) to between $12 million and $16 million, compared to its original $14 million to $22 million. 

Sales slipped 4.3% year on year to $105.4 million for the three months that ended June 30. An 8% decline in the average order value outweighed a 3.6% increase in orders, the company noted. Net profit grew 11% to $1.4 million, reflecting reduced operating expenses and exceeding the company’s guidance range. 

“I am pleased with our ability to manage the business with agility and discipline in the face of a challenging industry and macroeconomic backdrop,” said Brilliant Earth CEO Beth Gerstein. “We delivered quality order growth, expanded gross margin, and exceeded our profitability expectations. We are happy with our progress this quarter toward our strategic initiatives to establish Brilliant Earth as the premium jewelry brand for today’s consumer, while making the appropriate investments to set the stage for long-term growth.” 

The company is on track to open three new showrooms — physical locations where customers can view jewelry — in the second half of the year. Two of these are located in Boston, Massachusetts, while the third is in New York City. The new spaces will bring its total US showroom count to 40. 

First-half sales fell 2.5% year on year to $202.8 million, with net profit more than tripling to $2.4 million, compared with $795,000 a year ago. The company believes sales for the third quarter will decline by 11% to 14% year on year, while EBITDA will be flat or in the low-single-digit percentages, it added. 

Image: A Brilliant Earth showroom in Detroit, Michigan. (Brilliant Earth)