Financials

Brilliant Earth’s Fine Jewelry a Hit in Q2

FinancialsAug 12, 2022

Brilliant Earth’s Fine Jewelry a Hit in Q2

The company is also continuing its retail expansion.

Shown here are pieces from Brilliant Earth’s capsule collection with jewelry designer Jade Trau. The company’s second quarter net sales were up 18 percent year-over-year.
San Francisco—Brilliant Earth posted double-digit growth in the second quarter, highlighting the strong performance of its fine jewelry category.

The sales growth comes as the jewelry company continues its retail expansion across North America.

Here are five important takeaways from its most recent results.

Brilliant Earth’s Q2 sales were up 18 percent.

Net sales were $108.8 million, an 18 percent increase year-over-year compared with $92.3 million in the second quarter of last year.

Sales were up 31 percent compared with the second quarter of 2019, said Chief Financial Officer Jeff Kuo.

Total orders were up 25 percent year-over-year.

“We delivered a strong second quarter, reflecting the increasing awareness and resonance of the Brilliant Earth brand, the disciplined execution of our omnichannel growth strategy, and the advantages of our asset-light, agile, and data-driven business model,” said CEO Beth Gerstein.

Net income was $3.8 million, a 56 percent decrease compared with $8.5 million in the previous second quarter.

Brilliant Earth did not respond to a request for comment on the decline but noted during its earnings call it’s been increasing investments in its retail footprint and marketing, adding that employee costs have also increased.

The company noted its TikTok efforts have been especially successful, with 13 percent of customers surveyed stating that’s where they learned about the brand.

Brilliant Earth is expanding its fine jewelry offerings, and it’s paying off.

The company is best known for its bridal offerings, but it’s recently started to offer trend-driven fine jewelry collections, and the reception has been positive.

“We continue to see outsized performance within our fine jewelry assortment with growth that far outpaces the business as a whole,” said Kuo on an earnings call Thursday.

Fine jewelry did especially well over Mother’s Day, noted Gerstein on the call, with sales up nearly 4 percent year-over-year.

Wedding band sales were also particularly strong, noted Quo, thanks to the “year of the wedding.” The Knot has predicted 2.6 million American weddings will be celebrated in 2022.

“Both men’s and women’s wedding bands have grown faster than our overall business year-to-date, led by the strength of our product assortment and a record number of weddings that have driven demand,” said Gerstein.

However, strong sales in fine jewelry and wedding bands, which have a lower average price point than its bridal offerings, had a negative impact on the company’s average order value, said Kuo; it was down by a mid-single-digit percentage.

The company also launched a men’s jewelry line this June, just ahead of Father’s Day, and introduced thousands of new natural and lab-grown colored diamonds, as well as a wider assortment of colors, shapes, and price points.
Moved this up for flow.

Meanwhile, its personalized jewelry, like its zodiac collection, and its Fairmined gold jewelry has done especially well, said Gerstein.

Brilliant Earth is collaborating with popular designers for new collections.

In an effort to expand its jewelry offerings, Brilliant Earth has also inked collaboration deals with several notable partners this year.

The company kicked off the “year of the wedding” with a new collection, collaborating with Tacori for the second time in January.

The bridal collection featured six engagement rings and four wedding bands.

In May, the company teamed up with jewelry designer Jade Trau on an 11-piece capsule collection.

Previously, Brilliant Earth has collaborated with Moyo Gems, Alrosa, and CanadaMark.

Its retail footprint is growing quickly.

Brilliant Earth started out as an e-tailer, but the digital native has been gradually growing its brick-and-mortar retail footprint.

It’s picked up the pace this year, opening a total of seven showrooms so far.

The company currently operates 22 showrooms, with its most recent opening in St. Louis, marking its first location in Missouri.

Its other locations include New York, Los Angeles, Houston, Boston, and Chicago.

“We see tremendous opportunity for our business to grow and for our brand to lead in the highly fragmented jewelry industry,” said Kuo.

The company has asserted the importance of an omnichannel retail experience.

In an interview with Fox Business after going public, CEO Beth Gerstein spoke on the importance of having both options.

“Jewelry is a really considered purchase. Customers just really like to have a more one-on-one interaction. Knowing that there’s a showroom nearby just helps unlock that conversion and is reassuring to the customer,” she said.

 Related stories will be right here … 

Brilliant Earth maintained its full-year guidance and an optimistic outlook.

Brilliant Earth reiterated its guidance for the full year.

The company forecasted sales in the range of $450 million to $470 million, down from prior guidance of $485 million to $500 million.

It lowered its guidance in the first quarter, noting the impact of the current geopolitical and economic environment as well as more moderate sales growth despite strong demand.

However, Gerstein remained optimistic about the year ahead.

“There’s some fluctuation, but for the most part, [demand] has been consistent for us. Demand continues to be strong, so we’re excited to capitalize on the resonance we have with our customer base.”

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

AuctionsSep 30, 2022
Red Diamond Earns $1.8M at Auction

The final hammer price blew the pre-sale estimate out of the water.

EditorsSep 30, 2022
The Best of Betty White’s Jewelry Sold at Auction

Michelle Graff recaps the cats, fortune cookies, and charm bracelets that caught her eye while covering the late actress’ estate sale.

Policies & IssuesSep 30, 2022
Voting Is Open for the Fairmined 100 Challenge’s Best Collection

The winners, picked by a group of judges and voted as the public’s favorite, will be announced in a webinar on Oct. 11.

Brought to you by
6 Steps to Start a Dynamic Company Culture

Learn how to better serve your employees, customers and community by having a dynamic and supportive company culture.

CollectionsSep 30, 2022
Piece of the Week: Fewer Finer’s ‘Family Bracelet’

The engravable piece is a perfect family heirloom.

Weekly QuizSep 29, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
GradingSep 30, 2022
GSI India Names Ramit Kapur Managing Director

Kapur has spent nearly two decades working in the gemological labs sector of the jewelry industry.

Supplier BulletinSep 29, 2022
How to Create an Engaging Experience and a Sparkling Reputation

Sponsored by Synchrony

Brought to you by
Committing to an Ethical Diamond Business

While ethical mining is essential to a diamond business, they represent only a fraction of the responsibility bestowed on jewelers.

SourcingSep 29, 2022
Q&A: Constantin Wild Celebrates 175 Years in the Colored Stone Business

The family business’ fourth-generation eponymous owner reflects on the milestone and the market today.

AuctionsSep 29, 2022
See the Top Lots in Christie’s Upcoming Rare Watch Sale

According to Christie’s, the auction is its most important single-owner watch collection ever.

CollectionsSep 29, 2022
Trove Has a New Proposal: Ring Boxes

The jewelry box brand is expanding with both single and double ring boxes in red, mint green, and white.

SourcingSep 29, 2022
AGTA Names Jennifer Heebner Editor-in-Chief of its Publications

The association has also hired a new marketing manager and announced two staff transitions.

Policies & IssuesSep 29, 2022
JA Members Return to Capitol Hill to Voice Jewelers’ Concerns

The topics up for discussion with lawmakers included inflation, rising interest rates, hiring challenges, and crime.

AuctionsSep 28, 2022
The 18-Carat ‘Fortune Pink’ Diamond Could Sell for $35M

The pear-shaped fancy vivid pink diamond will lead the Christie’s Geneva Magnificent Jewels auction on Nov. 8.

SurveysSep 28, 2022
Consumer Confidence Rises in September

U.S. consumer confidence rose for the second consecutive month as gas prices fell.

MajorsSep 28, 2022
Artistry’s 2023 Catalog Is Out Now

The jewelry catalog features an updated layout and 160 pages of product.

MajorsSep 28, 2022
JFC’s 2022 ‘Hope for the Holidays’ Program Is an Adorable Menagerie

There are three designs to choose from this year, all featuring animals drawn by kids who have had wishes granted through Make-A-Wish.

AuctionsSep 27, 2022
In Betty White’s Blockbuster Estate Sale, Jewelry Held Its Own

Fine jewelry comprised three of the auction’s top 10 lots, though it could not top her director’s chair or scripts from “The Golden Girls.”

CrimeSep 27, 2022
3 Suspects in Beverly Hills Smash-and-Grab Robbery Arrested

A total of four suspects are now in custody with police still on the lookout for the remaining two.

ColumnistsSep 27, 2022
Creative Connecting: Fun Ideas for Holiday 2022 In-Store Events

From a “whodunnit” murder mystery to a permanent jewelry party, Duvall O’Steen and Jen Cullen Williams share a wealth of suggestions.

MajorsSep 27, 2022
Stuller Releases 2 Updated Catalogs Ahead of the Holiday Season

“Mountings 2023-2024” and “Diamonds & Gemstones 2023-2024” offer a vast selection of options to create custom pieces.

Events & AwardsSep 27, 2022
ICA’s 2023 Congress Will Be Held in Dubai

The event will be hosted by the Dubai Multi Commodities Centre from Feb. 15-17.

IndependentsSep 26, 2022
Roberson’s Fine Jewelry to Close After 42 Years

The store’s liquidation sale will showcase the mix of classic and unique jewels it’s known for stocking.

CollectionsSep 26, 2022
Go ‘Inside the Dream’ of Bulgari Via a New Documentary on Amazon Prime

It follows Creative Director Lucia Silvestri as she crafts the brand’s high jewelry collections.

Recorded WebinarsSep 26, 2022
Watch: What Jewelers Should Know About Insurance

From safeguarding showcases to appraisal liability, insurance experts Mark Devereaux and Andrew Chipman share insurance tips for jewelers.

TrendsSep 26, 2022
Vahan Collabs With Wolf on a Jewelry Box

It’s the first time in 50 years the brand has made something other than jewelry.

Events & AwardsSep 26, 2022
Texas Jewelers Association Rolls Out New Format for Design Competition

The competition takes place in tandem with TJA’s annual convention, known as the Texas Jewelers Roundup.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy