Core Viewpoint - Brilliant Earth Group, Inc. is set to report its fourth quarter and full year 2024 earnings results on March 12, 2025, indicating ongoing financial transparency and engagement with investors [1][2]. Company Overview - Brilliant Earth is a global leader in ethically sourced fine jewelry, founded in 2005, with a mission to create a more transparent, sustainable, and compassionate jewelry industry [3]. - The company reported net sales of $427 million for the twelve months ending September 30, 2024, showcasing significant revenue generation [3]. - Since going public in 2021, Brilliant Earth has maintained positive adjusted EBITDA in every quarter, reflecting strong financial performance [3]. - The company operates 40 showrooms across the United States and serves customers in over 50 countries, highlighting its extensive market reach [3]. Upcoming Events - An investor conference call and webcast will be held on March 12, 2025, at 5:00 PM ET to discuss the financial results and business outlook, demonstrating the company's commitment to investor relations [2]. - Access to the webcast and conference call details will be provided, ensuring transparency and accessibility for investors [2].

Company Overview - Brilliant Earth Group, Inc. is a $200 million omnichannel jewelry company that positions itself as a premium brand with leadership in the diamond spaces [1] Market Position - The company has been public for three years and has established a strong presence in the jewelry market, particularly in diamonds [1] Investment Philosophy - The investment philosophy of the company emphasizes simplicity, focusing on fundamental financial ratios and metrics for clear insights into market trends [1]

Financial Data and Key Metrics - Q3 net sales were $99.9 million, a 13% year-over-year decline [7] - Gross margin expanded 230 basis points year-over-year to 60.8% [8] - Adjusted EBITDA was $3.6 million, representing a 3.6% margin, exceeding expectations [8] - Total orders were flat year-over-year, while repeat orders increased by 11% [18] - Average order value (AOV) declined 12% year-over-year [19] - Average selling price (ASP) for engagement rings was flat, while wedding/anniversary bands and fine jewelry saw ASP growth [19] - SG&A was 61.9% of net sales, up from 56.8% in Q3 2023 [22] - Marketing expenses leveraged approximately 10 basis points as a percentage of net sales compared to Q3 2023 [23] - Inventory increased by 3.4% year-over-year [26] - Cash balance at the end of Q3 was $153 million, a $5.5 million year-over-year increase [27] Business Line Performance - Engagement ring sales experienced expected softness, but strong growth was seen in wedding/anniversary bands and fine jewelry [9] - The Jane Goodall fine jewelry collection was the most successful launch ever for the company's fine jewelry line [10] - Fine jewelry sales showed encouraging repeat purchase trends, a positive indicator for the holiday season [15] Market Performance - The company expanded its retail footprint with new showrooms in Boston and New York City, bringing the total to 40 by year-end [13] - Showrooms continue to deliver compelling metro uplift, with three new locations opening in time for the holiday season [13] Strategy and Industry Competition - The company remains focused on protecting and strengthening its premium brand, avoiding reliance on promotions and discounts [8][9] - Strategic investments in brand awareness, fine jewelry growth, and showroom expansion are key priorities [47][48] - The company's asset-light, data-driven model provides competitive advantages, including higher inventory turns than the industry average [26] Management Commentary on Operating Environment and Outlook - The engagement market continues to normalize, with competitors increasingly relying on promotions [8] - The company expects Q4 to show sequential improvement in year-over-year net sales growth [30] - The holiday season is expected to benefit from showroom uplift and ongoing brand-building efforts [30] - The company raised its adjusted EBITDA guidance for the year to $14 million to $16 million [29] Other Important Information - The company repurchased $179,000 of common stock in Q3, bringing the total year-to-date repurchases to $438,000 [28] - The company maintains a strong balance sheet with no net debt, allowing for continued prudent investments in the business [27] Q&A Session Question: Engagement market normalization and bridal trends - The company is seeing sequential improvement in engagement ring bookings trends and expects Q4 to be stronger [33] - The company remains adaptive and focused on protecting its premium brand without leaning into discounts [35][36] Question: Margin optimization and promotional environment - The price optimization engine is dynamic and continually refined to balance top-line growth and gross margin capture [37] - The company is well-positioned to manage promotional intensity due to its differentiated product and premium brand positioning [36] Question: Tariff scenarios and holiday strategies - The company's diversified supply chain and data-driven approach provide flexibility to adapt to tariff changes [38] - New showroom openings and an agile operating model position the company well for the holiday season [40] Question: Buyer metrics and new customer acquisition - Flat total orders and an 11% increase in repeat orders are driven by softer bridal demand, while non-bridal categories perform well [42] - Showrooms have held up nicely, and the company focuses on the omnichannel purchase experience [43] Question: Marketing leverage and future investments - The company continues to drive marketing efficiency, with social media remaining a key focus [46] - Strategic priorities include brand awareness, fine jewelry growth, and showroom expansion [47][48]

Financial Performance - Net sales for the three months ended September 30, 2024 decreased by $14.3 million, or 12.5%, compared to the same period in 2023, driven by an 11.6% decrease in average order value (AOV) and a 1.0% decrease in order volumes[93][112] - Net loss for the three months ended September 30, 2024 was $1.1 million, a 153.8% decline compared to net income of $2.0 million in the same period in 2023[93] - Adjusted EBITDA for the three months ended September 30, 2024 was $3.6 million, down 52.3% compared to $7.6 million in the same period in 2023[93] - Net sales for the nine months ended September 30, 2024 decreased by $19.4 million, or 6.0%, compared to the same period in 2023[94] - Net income for the nine months ended September 30, 2024 was $1.4 million, down 51.1% compared to $2.8 million in the same period in 2023[94] - Adjusted EBITDA for the nine months ended September 30, 2024 was $14.2 million, down 32.1% compared to $20.9 million in the same period in 2023[94] - Gross profit for Q3 2024 decreased by $6.1 million, or 9.1%, compared to Q3 2023, while gross margin increased by 230 basis points due to premium brand offerings and pricing efficiency[113] - Selling, general, and administrative expenses for Q3 2024 decreased by $3.0 million, or 4.6%, driven by a $4.0 million reduction in marketing expenses[114] - Net sales for the nine months ended September 30, 2024 decreased by $19.4 million, or 6.0%, due to a 10.5% decline in AOV, partially offset by a 5.0% increase in order volumes[120] - Gross profit for the nine months ended September 30, 2024 decreased by $0.8 million, or 0.5%, while gross margin increased by 340 basis points[122] - Selling, general, and administrative expenses for the nine months ended September 30, 2024 increased by $1.5 million, or 0.8%, primarily due to a $6.7 million rise in employment expenses[123] - Total orders for the nine months ended September 30, 2024 increased by 6,032, or 5.0%, driven by strong performance in lower price point products[129] - Average order value (AOV) for the nine months ended September 30, 2024 decreased by $277, or 10.5%, due to a higher mix of lower price point products[129] - Other income, net for the nine months ended September 30, 2024 increased by $1.0 million, primarily due to higher interest income[125] - Income tax expense for the nine months ended September 30, 2024 increased by $0.1 million compared to the same period in 2023[127] - Adjusted EBITDA and Adjusted EBITDA margin are used by management to assess financial performance, excluding certain non-operating expenses and income[134] - Net loss for the three months ended September 30, 2024 was $1.075 million, compared to a net income of $1.998 million for the same period in 2023[136] - Adjusted EBITDA for the nine months ended September 30, 2024 was $14.202 million, down from $20.908 million in the same period in 2023[136] - Adjusted EBITDA margin for the nine months ended September 30, 2024 was 4.7%, compared to 6.5% in the same period in 2023[136] Cash Flow and Financial Position - As of September 30, 2024, the company had a cash balance of $152.7 million and negative working capital of ($22.3) million[137] - The SVB Term Loan had an outstanding principal balance of $58.5 million as of September 30, 2024, with $52.0 million classified as long-term[138] - Net cash provided by operating activities for the nine months ended September 30, 2024 was $3.504 million, a decrease of $12.0 million compared to the same period in 2023[143] - Net cash used in investing activities for the nine months ended September 30, 2024 was $2.730 million, a decrease of $8.0 million compared to the same period in 2023[147] - Net cash used in financing activities for the nine months ended September 30, 2024 was $3.926 million, a decrease of $8.4 million compared to the same period in 2023[148] Business Strategy and Expansion - The company plans to expand its omnichannel presence by strategically opening showrooms in new markets, leveraging its marketing strategy and growing brand awareness[100][101] - The company is in the early stages of international expansion, with localized websites in Canada, Australia, and the UK, and sales to customers from over 50 countries[104] - The company aims to introduce new products by leveraging in-house design capabilities and data-driven product development to expand its assortment for special occasions and self-purchase[102] - The company operates with an asset-light model, featuring capital-efficient showrooms and a vast virtual inventory of premium natural and lab-grown diamonds, enabling negative working capital[105] Internal Controls and Compliance - The company identified a material weakness in internal control related to ineffective IT general controls (ITGCs), impacting areas such as change management, user access, and segregation of duties for IT systems supporting financial reporting[167] - The material weakness did not result in misstatements in the financial statements but created a reasonable possibility of material misstatements not being prevented or detected on time, leading to ineffective internal control over financial reporting[168] - The company has implemented a remediation plan, including enhancing privileged access reviews, strengthening change management procedures, hiring a director of ITGC, and developing company-wide training on internal controls[169] - The material weakness will not be considered remediated until controls operate effectively for a sufficient period, and the company cannot guarantee that future actions will prevent similar weaknesses[170] - No other changes in internal control over financial reporting occurred during the quarter ended September 30, 2024, aside from ongoing remediation efforts[172] Legal Proceedings - The company is involved in a legal proceeding with a former employee alleging violations of the California Labor Code, with the company appealing a court decision to compel arbitration[175] Emerging Growth Company Status - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards, which may result in financial statements that are not comparable to those of non-emerging growth companies[162] - The company will remain an emerging growth company until the earliest of: (a) December 31, 2026, (b) achieving total annual gross revenue of at least $1.235 billion, or (c) being deemed a large accelerated filer with a market value of common stock held by non-affiliates exceeding $700.0 million[163] Technology and Contracts - The company entered into three technology service agreements in August and September 2024, with total minimum contractual payments of approximately $2.9 million[159]

Group 1 - Brilliant Earth Group, Inc. (BRLT) reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.05 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $99.87 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.52%, and down from $114.15 million year-over-year [2] - The stock has underperformed significantly, losing about 54% since the beginning of the year compared to the S&P 500's gain of 24.3% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $116.64 million, and $0.05 on revenues of $419.59 million for the current fiscal year [7] - The Zacks Industry Rank for Retail - Jewelry is currently in the bottom 18% of over 250 Zacks industries, indicating potential challenges for the sector [8] - Signet (SIG), another company in the same industry, is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year change of +20.8%, with revenues projected at $1.36 billion, down 2% from the previous year [9]

Brilliant Earth Reports Third Quarter 2024 Results Delivered Net Sales Within Guidance Range and Drove 11% Year-Over-Year Repeat Order Growth Increased Third Quarter Gross Margin by 230 bps Year-Over-Year to 60.8% Reported GAAP Diluted EPS of $(0.01) and Adjusted Diluted EPS of $0.02 Exceeded Profitability Expectations Raises Profitability Guidance for the Year SAN FRANCISCO, Calif. – November 7, 2024 (GLOBE NEWSWIRE) – Brilliant Earth Group, Inc. ("Brilliant Earth" or the "Company") (Nasdaq: BRLT), an inno ...

SAN FRANCISCO, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. ("Brilliant Earth" or the "Company") (NASDAQ: BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced that it will report third quarter 2024 earnings results after the market closes on Thursday, November 7, 2024. The Company will host an investor conference call and webcast to review these financial results and business outlook at 5:00pm ET/2:00pm PT on the same day. The webcast can be accessed at htt ...

SAN FRANCISCO, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. ("Brilliant Earth" or the "Company") (Nasdaq: BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced the expansion of its retail fleet with the opening of two new street-level showrooms in Boston, as well as the renovation of its Newbury Street location. The new Chestnut Hill location is now open at 27 Bolyston Street and is part of the premium shopping destination "The Street Chestnut Hill". The se ...

Brilliant Earth Group, Inc. (NASDAQ:BRLT) Q2 2024 Earnings Conference Call August 8, 2024 5:00 PM ET Company Participants Colin Borland - VP of Strategy and Business Development Beth Gerstein - CEO Jeffrey Kuo - CFO Conference Call Participants Thomas Nass - TD Cowen Ashley Owens - KeyBanc Capital Markets Dylan Carden - William Blair Operator Thank you for standing by, and welcome to the Brilliant Earth Second Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, today's program is being record ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-40836 Brilliant Earth Group, Inc. (Exact name of registrant as specified in its charter) Delaware 87-1015499 (S ...