Core Insights - Brilliant Earth Group, Inc. released its 2024 Mission Report, emphasizing its commitment to transparency, sustainability, compassion, and inclusivity, reinforcing its leadership in the ethically sourced fine jewelry industry [1][3] Sustainability - Launched the Jane Goodall Collection, with 10% of proceeds supporting the Jane Goodall Institute, utilizing repurposed gold and lab diamonds made from captured CO2 [2][3] - Achieved validation of net-zero emission reduction targets by the Science Based Targets initiative (SBTi) within a year [2][3] - Received the 2024 Reuters Sustainability Trailblazer Award for leadership in sustainability and innovation [3] - Implemented energy-efficient practices in new showrooms, sourcing carbon-free energy and avoiding 96 metric tons of CO2 emissions [3] Transparency - Confirmed 99% of gold as repurposed, a 3% increase from 2023, and expanded Fairmined Gold Collection, leading to a 364% increase in Fairmined purchases [3] - Launched the Flawless Collection, focusing on ethical sourcing and high-quality diamonds [3] - Joined Originalluxury to enhance collaboration on transparency and traceability in the jewelry industry [3] Compassion - Committed $300,000 over three years to establish the Gem Legacy Gem Faceting School in Tanzania, supporting local mining communities [3][5] - Funded a meal program for Kitarini Primary School in Tanzania, serving 372,800 meals and significantly improving attendance and exam passing rates [5] Inclusion - Recognized as a Great Place to Work in 2024 and a five-time winner of Built In's Best Places to Work [5] - Set goals for 2025 to ensure 100% of gold and silver is repurposed or Fairmined, and 50% of lab diamond inventory is processed using renewable energy [5] Financial Performance - Reported full-year net sales of $422 million in 2024 and positive Adjusted EBITDA for 14 consecutive quarters since going public in 2021 [4]

Financial Performance - Delivered Q4 2024 Net Sales of $119.5 million, achieving the high end of guidance, and full year Net Sales of $422.2 million[5] - Generated Q4 2024 GAAP Net Income of $2.6 million, a 35.3% increase from $1.9 million in Q4 2023, and full year Net Income of $4.0 million[5] - Net sales for the year ended December 31, 2024, were $422.161 million, a decrease of 5.4% from $446.382 million in 2023[23] - Net income for 2024 was $3.994 million, compared to $4.734 million in 2023, indicating a decline of 15.6%[23] - Basic earnings per share for 2024 were $0.04, down from $0.05 in 2023, while diluted earnings per share decreased from $0.04 to $0.03[23] - The company reported a net income margin of 0.9% for 2024, compared to 1.1% in 2023[27] Growth Metrics - Total orders grew by 10% year-over-year in Q4 and 7% for the fiscal year 2024, with repeat orders increasing by 18% in Q4 and 17% for the year[5] - Expanded Gross Margin by 90 basis points to 59.6% in Q4 and by 270 basis points to 60.3% for the fiscal year compared to prior year periods[5] - Achieved Adjusted EBITDA of $6.9 million in Q4 2024, a 31.1% increase from $5.3 million in Q4 2023, and $21.1 million for the fiscal year[5] - Adjusted EBITDA for the year ended December 31, 2024, was $21.118 million, down from $26.182 million in 2023, reflecting a margin of 5.0%[27] Cash and Assets - Ended fiscal year 2024 with $106 million in net cash, the highest position since 2021[5] - Total assets increased to $281.245 million in 2024 from $273.583 million in 2023, reflecting a growth of 2.4%[24] - Total liabilities decreased to $171.863 million in 2024 from $176.127 million in 2023, a reduction of 2.4%[24] - Cash and cash equivalents increased to $161.925 million in 2024, up from $155.809 million in 2023, showing a growth of 3.6%[24] Strategic Initiatives - Expanded retail showroom portfolio to 40 locations, including new showrooms in Boston Seaport and Nolita, New York City[5] - Focus on product innovation, brand amplification, and customer experience to drive sustainable growth in the future[3] - The company plans to continue expanding its market presence and introducing new products to enhance customer engagement and sales growth[20] Taxation and Contributions - Brilliant Earth Group, Inc. is subject to U.S. Federal income taxes, in addition to state and local taxes on its allocable share of any net taxable income of Brilliant Earth, LLC[32] - Acquisition of LLC units by Brilliant Earth Group, Inc. causes all of the taxable income currently recognized by the members of Brilliant Earth, LLC to become taxable to the Company[32] - For the year ended December 31, 2023, costs included a $1 million charitable contribution[32]

Core Insights - Brilliant Earth Group, Inc. reported strong financial results for Q4 2024, achieving net sales at the high end of guidance and a 10% year-over-year growth in total orders [1][3] - The company exceeded profitability expectations, increasing Q4 2024 gross margin by 90 basis points year-over-year to 59.6% [1][4] - For Q4 2024, GAAP diluted EPS was $0.02 and adjusted diluted EPS was $0.04, indicating stable earnings performance [1][6] Q4 2024 Financial Highlights - Total orders reached 58,357, up 10.2% from 52,935 in Q4 2023 [4] - Average order value (AOV) decreased by 12.8% to $2,048 from $2,349 in Q4 2023 [4] - Net sales for Q4 2024 were $119.5 million, a decline of 3.9% from $124.3 million in Q4 2023 [4] - Gross profit was $71.2 million, down 2.5% from $73.0 million in Q4 2023 [4] - Net income for Q4 2024 was $2.6 million, a 35.3% increase from $1.9 million in Q4 2023 [4] Fiscal Year 2024 Overview - Total orders for FY 2024 were 186,030, a 6.6% increase from 174,576 in FY 2023 [7] - Net sales for FY 2024 were $422.2 million, down 5.4% from $446.4 million in FY 2023 [7] - Gross margin improved to 60.3%, up 270 basis points from 57.6% in FY 2023 [7] - Adjusted net income for FY 2024 was $11.8 million, a decrease of 27.2% from $16.2 million in FY 2023 [7] Strategic Developments - The company opened new retail showrooms, expanding its portfolio to 40 locations, including a new showroom in Boston Seaport and its first street-level location in New York City [5] - Brilliant Earth ended FY 2024 with $106 million in net cash, marking its highest net cash position since 2021 [5] 2025 Guidance - For Q1 2025, the company expects adjusted EBITDA to be between $0 to $1.5 million [9] - Full-year net sales are projected to be between $93.5 million and $95.5 million, reflecting a year-over-year growth of 1% to 3% [9]

Company Overview - Brilliant Earth Group, Inc. is a global leader in ethically sourced fine jewelry, aiming to create a more transparent, sustainable, and compassionate jewelry industry since its founding in 2005 [2] - The company operates with a premium brand and a curated proprietary product assortment, offering a seamless omnichannel shopping experience [2] - Brilliant Earth has reported net sales of $427 million for the twelve months ended September 30, 2024, and has achieved positive adjusted EBITDA in every quarter since going public in 2021 [2] Recent Developments - The company will participate in the UBS Global Consumer and Retail Conference on March 13, 2025, in New York, where management will meet with investors [1]

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 ...