Company Overview - Brilliant Earth is a leader in ethically sourced fine jewelry, aiming to create a more transparent, sustainable, and compassionate jewelry industry since its founding in 2005 [10] - The company reported full-year net sales of $422 million in 2024 and has achieved positive Adjusted EBITDA for 15 consecutive quarters since going public in 2021 [10] - Brilliant Earth operates 42 showrooms across the United States and serves customers in over 50 countries worldwide [10] Product Launch - The company has launched a limited-edition Diamond Bee Pendant necklace inspired by a custom bolo tie worn by Beyoncé during her Chicago performance on the Cowboy Carter Tour [6][9] - The pendant features a 14.46-carat natural black diamond and 1,046 diamonds with a total weight of 5.7 carats, set in repurposed 18K yellow gold [7] - The necklace retails for $595 and is available in limited quantities at BrilliantEarth.com and select showrooms [12] Cultural Impact - The design of the pendant reflects Beyoncé's cultural impact and her bold Western aesthetic, celebrating her artistry and commitment to self-expression [8] - The launch of the Diamond Bee Pendant marks a significant moment in the growth and evolution of Brilliant Earth as an innovator in today's culture [8]

Financial Performance - Net sales for Q1 2025 were $93,884,000, a decrease of 3.5% compared to $97,337,000 in Q1 2024[25] - Gross profit for Q1 2025 was $55,042,000, down from $58,306,000 in Q1 2024, reflecting a decline of 5.0%[25] - The company reported a net loss of $3,267,000 in Q1 2025, compared to a net income of $1,067,000 in Q1 2024[25] - Basic earnings per share for Q1 2025 were $(0.03), down from $0.01 in Q1 2024[25] - The net loss for the period ending March 31, 2025, was $3,267,000, compared to a net loss of $2,801,000 for the same period in the previous year, indicating a deterioration in financial performance[28] - For the three months ended March 31, 2025, the net loss was $3.267 million compared to a net income of $1.067 million for the same period in 2024, indicating a significant decline in profitability[31] - The company reported a net loss of $3.3 million for the three months ended March 31, 2025, which is a decline of 406.2% compared to a net loss of $1.1 million for the same period in 2024[96] - Adjusted EBITDA for the three months ended March 31, 2025, was $1.1 million, down 78.8% from $5.1 million for the same period in 2024[96] - The adjusted EBITDA margin for the three months ended March 31, 2025, was 1.1%, compared to 5.2% for the same period in 2024[96] Operating Expenses - Total operating expenses increased to $58,565,000 in Q1 2025, compared to $57,429,000 in Q1 2024, representing a rise of 1.98%[25] - Operating expenses increased by $1.1 million, or 2.0%, for the three months ended March 31, 2025, with operating expenses as a percentage of net sales rising by 340 basis points[115] Assets and Liabilities - Total current assets decreased to $197,956,000 as of March 31, 2025, from $211,413,000 as of December 31, 2024, a decline of 6.3%[20] - Total liabilities as of March 31, 2025, were $166,678,000, down from $171,863,000 at the end of 2024, a decrease of 3.0%[21] - Cash and cash equivalents decreased to $147,338,000 as of March 31, 2025, from $161,925,000 as of December 31, 2024, a decline of 9.0%[20] - The company’s total stockholders' equity decreased to $102,972,000 as of March 31, 2025, from $109,382,000 at the end of 2024, a decrease of 5.8%[22] - Current portion of long-term debt increased significantly to $20,000,000 as of March 31, 2025, compared to $5,688,000 at the end of 2024, an increase of 251.5%[21] - The company's total debt as of March 31, 2025, was $54.844 million, down from $56.063 million as of December 31, 2024[65] Cash Flow - The company reported a net cash used in operating activities of $7.127 million for Q1 2025, an increase from $5.790 million in Q1 2024[31] - Net cash used in investing activities was $0.7 million for the three months ended March 31, 2025, compared to $0.6 million in 2024, primarily due to increased purchases of property and equipment[140] - Net cash used in financing activities increased to $6.7 million in the first quarter of 2025 from $2.0 million in 2024, mainly due to higher tax distributions of $4.4 million[141] Shareholder Activities - The company repurchased 102,460 shares of common stock during the period, which is a strategic move to manage equity and enhance shareholder value[28] - The average price paid per share for the repurchases was $1.56, with the highest being $1.84 and the lowest at $1.47[165] - The Board of Directors approved a share repurchase program authorizing up to $20.0 million of Class A common stock purchases, effective until December 8, 2026[165] Revenue Recognition - The company recognized $17.6 million of revenue that was previously deferred as of December 31, 2024, compared to $16.2 million for the same period in 2024[54] - As of March 31, 2025, total deferred revenue was $23.1 million, an increase from $18.9 million as of December 31, 2024[53] Market and Economic Conditions - The current inflationary environment and changes in macro-level consumer spending trends have negatively impacted sales and could further affect operating results[106] - Net sales for the three months ended March 31, 2025, decreased by $3.5 million, or 3.5%, compared to the same period in 2024, primarily due to a 14.2% decrease in Average Order Value (AOV) despite a 12.4% increase in order volumes[111] Internal Controls and Compliance - The company has identified a material weakness in internal controls related to information technology general controls, which could impact financial reporting[155] - The company intends to remediate the identified material weakness through various measures, including hiring a director of ITGC and enhancing training and access management procedures[157]

Company Overview - Brilliant Earth (NASDAQ: BRLT) operates in the premium jewelry sector, specializing in ethically sourced diamonds and gemstones used in jewelry [1] - The stock has experienced a decline of 29% year-to-date and 43% over the past year [1] Investment Strategy - The investment approach focuses on value and deep value, with interests in sectors such as financial services (regional banks and insurance), retail, software/technology, and waste management stocks [1] - A concentrated portfolio strategy is employed, concentrating on a few key companies with a deep understanding of industry trends, competitors, and management [1] - Emphasis is placed on valuation, integrating qualitative aspects of the company into a supportive valuation narrative [1] Educational Background and Goals - The educational background includes a specialization in Accounting and a minor in Economics from Wilfrid Laurier University [1] - The current goal includes obtaining a CPA designation and seeking second opinions on investment ideas while inspiring readers to think differently about investing [1]

Company Overview - Brilliant Earth 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 full year Net Sales of $422 million for 2024 and has achieved positive Adjusted EBITDA for 15 consecutive quarters since going public in 2021 [2] Industry Participation - The company will participate in the B. Riley Securities 25th Annual Investor Conference on May 21-22, 2025, at the Ritz-Carlton, Marina Del Rey, California [1] - Management will engage with investors throughout the conference [1] Operational Footprint - Brilliant Earth is headquartered in San Francisco, CA, and Denver, CO, and has 41 showrooms across the United States [2] - The company has served customers in over 50 countries worldwide [2]

Financial Data and Key Metrics Changes - The company reported net sales of $93.9 million for Q1 2025, a 3.5% decline year over year, but within the stated guidance range [6][15] - Adjusted EBITDA for Q1 was $1.1 million, representing a 1.1% adjusted EBITDA margin, marking the fifteenth consecutive quarter of profitability [6][18] - Gross margin was 58.6%, a 130 basis point decline year over year, primarily due to higher gold costs and labor expenses [17][18] - Average order value (AOV) was $2,062, reflecting a 14.2% decline year over year [16] Business Line Data and Key Metrics Changes - Engagement rings showed positive year-over-year unit growth, particularly in rings priced under $5,000 [7][9] - Fine jewelry bookings represented 14% of total bookings in Q1, an increase of approximately 350 basis points year over year, with strong double-digit growth [9][10] - The wedding and anniversary band business also experienced year-over-year bookings growth, especially in men's wedding bands and women's eternity bands [9] Market Data and Key Metrics Changes - Total orders grew by 12% year over year, with repeat orders increasing by 13% [15] - The company noted strong performance during Valentine's Day, with bookings up mid to high single digits year over year, and fine jewelry bookings growing over 40% in the two weeks leading up to the holiday [11][12] Company Strategy and Development Direction - The company is focused on expanding its fine jewelry assortment and enhancing its omnichannel experience to attract new customers and provide additional purchase opportunities for repeat customers [10][12] - Plans to open one to two new showrooms in 2025, with the next location in Alpharetta, Georgia [12] - The company is monitoring tariff impacts closely and believes its diversified supplier base and pricing optimization strategies provide a competitive advantage [13][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's resonance with consumers and the positive trends in engagement ring units continuing into Q2 [28] - The company expects net sales for Q2 to be between a 3% decline to flat year over year, with a mid to high single-digit growth rate anticipated in the second half of the year [22][23] - Management reiterated guidance for adjusted EBITDA margins in the range of approximately 3% to 4% for the year [23] Other Important Information - The company ended Q1 with approximately $147 million in cash and a strong net cash position of about $92.5 million, reflecting a year-over-year increase [21] - The company repurchased approximately $163,000 of its common stock in Q1, totaling about $801,000 in repurchases to date [22] Q&A Session Summary Question: Engagement trends and macro impacts - Management noted positive unit growth in engagement rings and continued strong performance in Q2, indicating that the brand resonates well with consumers [28] Question: Revenue phasing and tariff impacts - Revenue is expected to be back half weighted with mid to high single-digit growth in the second half, and management is confident in mitigating tariff impacts through operational and pricing strategies [31][32] Question: AOV pressures and growth expectations - Management is optimistic about fine jewelry growth and believes that strategic initiatives will drive higher growth rates, despite some pressures on AOV [36][41] Question: Valentine's Day performance and pricing strategies - Valentine's Day saw strong performance, with best sellers reflecting the brand's design leadership, and management is focused on data-driven pricing strategies [50][53] Question: Showroom performance and future openings - The company plans to maintain a consistent approach to showroom openings while investing in existing locations, with over 40 showrooms currently [55][56]

Financial Data and Key Metrics Changes - The company reported net sales of $93.9 million for Q1, representing a 3.5% decline year over year, but within the stated guidance range [5][14] - Adjusted EBITDA for Q1 was $1.1 million, reflecting a 1.1% adjusted EBITDA margin, marking the fifteenth consecutive quarter of profitability [5][16] - Average order value (AOV) decreased by 14.2% year over year to $2,062, driven by strong performance in bridal price ranges below $5,000 [15][41] - Gross margin for Q1 was 58.6%, a decline of 130 basis points year over year, primarily due to higher gold costs and labor expenses [15][60] Business Line Data and Key Metrics Changes - Engagement rings showed positive year-over-year unit growth, particularly in rings priced under $5,000, with strong growth in the signature engagement ring collection [6][10] - Fine jewelry bookings represented 14% of total bookings in Q1, an increase of approximately 350 basis points year over year, with bookings growing over 40% in the lead-up to Valentine's Day [7][10] - The wedding and anniversary band business also experienced strong year-over-year bookings growth, particularly in men's wedding bands and women's eternity bands [6][7] Market Data and Key Metrics Changes - Total orders grew by 12% year over year, with repeat orders increasing by 13% in Q1, indicating effective customer acquisition and retention strategies [5][14] - The company noted a successful Valentine's Day period, achieving its strongest performance ever, with total bookings up mid to high single digits year over year [10][11] Company Strategy and Development Direction - The company is focused on expanding its fine jewelry assortment, which is seen as a key growth driver, and plans to continue investing in this area [9][10] - The company opened a new showroom in Dallas Fort Worth and plans to open one to two more locations in 2025, including a new showroom in Alpharetta, Georgia [11][12] - The management emphasized a data-driven approach to pricing and procurement, which is expected to provide a competitive advantage in navigating market changes [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's resonance with consumers and the continued positive trends in engagement ring units observed in Q2 [27][41] - The company anticipates a back-half weighted revenue growth with a mid to high single-digit growth rate in the second half of the year, driven by improvements in engagement rings and strong fine jewelry performance [22][29] - Management acknowledged the potential impact of tariffs and gold prices but indicated that they have strategies in place to mitigate these effects [22][32] Other Important Information - The company ended Q1 with approximately $147 million in cash and a strong net cash position of about $92.5 million, reflecting a year-over-year increase [20] - The company repurchased approximately $163,000 of its common stock in Q1, bringing the total to approximately $801,000 [21] Q&A Session Summary Question: Engagement trends and macro impacts - Management noted positive unit growth in engagement rings and continued strength into Q2, indicating that the brand resonates well with consumers [27] Question: Revenue phasing between Q3 and Q4 and tariff impacts - Management expects revenue to be back half weighted, with a favorable comp from Q3 2024 and strong fine jewelry performance in Q4 [29][31] Question: AOV pressures and long-term growth - Management is optimistic about fine jewelry growth and believes that the brand's resonance will help achieve mid to high single-digit growth rates [36][39] Question: Customer value orientation and margin expansion - Management acknowledged that customers are looking for value, particularly in the under $5,000 price range, but noted sustained unit growth [66] Question: Valentine's Day performance and pricing strategies - Management highlighted strong performance during Valentine's Day and emphasized a data-driven approach to pricing optimization [50][52]

Q1 2025 Financial Performance - Net sales reached $93.9 million[20], a decrease of 3.5% year-over-year[26] - Average Order Value (AOV) was $2,062[20], a decrease from $2,402 in Q1 2024[29] - Total orders increased by 12% year-over-year, reaching 45,500[20, 29] - Gross margin was 58.6%[20], a decrease of 130 basis points year-over-year[26] - Adjusted EBITDA was $1.1 million, representing 1.1% of net sales[20, 26] Growth and Expansion - Repeat orders grew by 13% year-over-year[20] - Fine jewelry bookings contributed 14% of total bookings, a year-over-year expansion of approximately 350 basis points[24] - The company opened one new showroom in Southlake, Texas, bringing the total to 41 showrooms[24] 2025 Outlook - The company expects second-quarter net sales growth to be between -3% and 0% year-over-year and adjusted EBITDA to be between -$1.5 million and $2 million[50] - For the full fiscal year 2025, the company anticipates net sales growth of 1% to 3% year-over-year and an adjusted EBITDA margin of 3% to 4%[50] Medium-Term Targets - The company aims to accelerate net sales growth to a low teens percentage by 2027[53] - The company expects a gross margin in the high 50s percentage through 2027[53] - The company plans to decrease marketing expenses as a percentage of net sales from 2025 to 2027[53] - The company targets an adjusted EBITDA margin in the double digits by 2027[53]

"We're pleased with our first quarter performance, which demonstrates the continued strength and resilience of our business model as we delivered our 15th consecutive quarter of profitability as a public company. Our business is gaining momentum, evidenced by our 12% year-over-year growth in total orders, particularly strong performance in fine jewelry, and continued expansion of our showroom footprint," said Beth Gerstein, Co-Founder and Chief Executive Officer of Brilliant Earth. "The positive engagement ...

Core Insights - Brilliant Earth Group, Inc. reported financial results for Q1 2025, achieving net sales of $93.9 million, a 3.5% decrease from Q1 2024, but demonstrating a 12% year-over-year growth in total orders and a 13% growth in repeat orders [1][5][4] - The company maintained profitability for the 15th consecutive quarter, with a GAAP diluted EPS of $(0.03) and an adjusted diluted EPS of $0.00 [1][4][3] - The company reiterated its annual guidance and provided an outlook for Q2 2025, expecting net sales to decline by 3% to 0% year-over-year [1][8] Financial Performance - Total orders for Q1 2025 reached 45,535, up from 40,525 in Q1 2024, marking a 12.4% increase [4] - Average Order Value (AOV) decreased by 14.2% to $2,062 compared to $2,402 in Q1 2024 [4] - Gross profit for Q1 2025 was $55.0 million, down 5.7% from $58.3 million in Q1 2024, resulting in a gross margin of 58.6% [4][5] - The net loss attributable to Brilliant Earth Group, Inc. was $(0.5) million, a significant decline from a profit of $0.1 million in Q1 2024 [4][5] - Adjusted EBITDA for Q1 2025 was $1.1 million, down 78.8% from $5.1 million in Q1 2024, with an adjusted EBITDA margin of 1.1% [4][5] Business Highlights - The company experienced strong engagement ring unit trends and record-breaking bookings leading up to Valentine's Day, indicating robust demand for its premium products [3][5] - Brilliant Earth expanded its retail showroom portfolio to 41 locations, including a new showroom in the Dallas-Fort Worth area [5] - The company ended Q1 2025 with $92.5 million in net cash, reflecting a 5% year-over-year growth [5] Outlook - For Q2 2025, the company anticipates net sales to be flat or decline by up to 3% year-over-year, with adjusted EBITDA expected to range from a loss of $1.5 million to a profit of $2 million [8] - For the full year 2025, the company projects net sales growth of 1% to 3% year-over-year and an adjusted EBITDA margin of 3% to 4% [8]

SAN FRANCISCO, April 15, 2025 (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 first quarter 2025 earnings results before the market opens on Tuesday, May 6, 2025. The Company will host an investor conference call and webcast to review these financial results and business outlook at 8:30am ET/5:30am PT on the same day. The webcast can be accessed at https:// ...