Brilliant Earth’s sales slipped 4% year on year to $119.5 million in the fourth quarter as consumers increasingly opted for engagement rings that cost less than $5,000, driving down the average order value.
The decrease in sales came even as the retailer saw a 10% year-on-year increase in total orders during the October-to-December period, it said Wednesday. Sales also reached the high end of the company’s predictions, CEO Beth Gerstein explained. Net profit for the period grew 35% to $2.6 million.
“Despite a competitive, highly promotional holiday season, we not only hit the high end of our net sales expectations, but also delivered fourth-quarter profitability that far surpassed our guidance, marking our 14th consecutive quarter of profitability as a public company,” Gerstein noted.
The holiday season buoyed sales, with Black Friday setting the record for the most bookings in the company’s history. Engagement rings were one of the top sellers during the period, with the company’s signature engagement ring collection “shining” during the three months, as sales outpaced the overall engagement-ring business by double digits, Gerstein said in an earnings call transcribed by Seeking Alpha. Men’s engagement rings also proved popular, “outperforming” the previous year.
For the full year, sales fell 5% to $422.2 million, while net profit dropped 16% to $4 million.
During the year, the company opened two new showrooms in Boston and New York, bringing its total to 40. It plans to debut between two and three in 2025, including one in Texas.
Brilliant Earth expects sales for the first quarter of 2025 to total between $93.5 million and $95.5 million, slightly down year on year. For the full year, net sales are anticipated to rise 1% to 3%.
“Our outlook includes the assumption that the path towards a more normalized bridal market continues over the next few years, and that the broader economic environment remains relatively unchanged,” Brilliant Earth chief financial officer Jeff Kuo commented on the call.
Image: A Brilliant Earth showroom in Tampa, Florida. (Brilliant Earth)
