Financial Data and Key Metrics Changes - Q2 net sales reached $108.9 million, representing a year-over-year increase of 3.3%, exceeding the high end of guidance by 330 basis points [17] - Total orders grew 18% year-over-year, while repeat orders increased by 11% [17] - Adjusted EBITDA for Q2 was $3.2 million, marking a 2.9% adjusted EBITDA margin, significantly surpassing guidance [18] - Average order value (AOV) declined by 12.6% year-over-year to $2,074, attributed to the growth in fine jewelry, which has a lower price point compared to bridal collections [18] - Gross margin was 58.3%, a decrease of 250 basis points year-over-year, primarily due to higher gold costs and tariffs [18] Business Line Data and Key Metrics Changes - Fine jewelry bookings grew 38% year-over-year, contributing significantly to overall sales growth [8] - Engagement rings and wedding bands experienced high single-digit unit growth year-over-year [11] - The average order value decline was influenced by the strong performance in fine jewelry, which is generally lower-priced than bridal assortments [10] Market Data and Key Metrics Changes - Customer demand for Brilliant Earth jewelry remained strong, with total orders growing 18% year-over-year [10] - The company noted a rebound in engagement ring customers, particularly in the under $5,000 price range [10] - Showroom orders from retail customers without scheduled appointments grew 81% year-over-year, indicating increased walk-in traffic [12] Company Strategy and Development Direction - The company aims to become the world's most loved and trusted jewelry brand, focusing on increasing brand awareness and providing a seamless omnichannel experience [7] - Strategic investments are being made in technology, data analytics, and showroom expansion to drive long-term growth [8] - The company is leveraging AI and machine learning to enhance marketing efficiency and operational effectiveness [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment, including the impact of new tariffs on imports from India [6][25] - The company raised its annual net sales guidance, expecting growth of 2.5% to 4% year-over-year [24] - Management highlighted the importance of strategic investments in brand building and showroom expansion to sustain growth [35] Other Important Information - The company announced a one-time cash dividend of approximately $25.3 million, reflecting its strong cash position and commitment to shareholder returns [22] - The company ended Q2 with approximately $134 million in cash, having paid off its term loan, leaving no outstanding debt [23] Q&A Session Summary Question: Insights on fine jewelry growth relative to margins - Management noted that consumers are discerning and gravitating towards high-quality fine jewelry, which is positively impacting overall AOV [30][32] Question: Thoughts on debt payment and future investments - Management emphasized the strong balance sheet and cash position, allowing for continued strategic investments in brand and showroom growth [34][36] Question: Consumer health and spending habits - Management observed that consumers are discerning but are spending on high-quality jewelry, with strong performance in engagement rings and wedding bands [41][42]

Financial Performance - Net sales reached $108.9 million, a 3% year-over-year increase[27] - Average Order Value (AOV) was $2,074[22] - Total orders increased by 18% year-over-year[22] - Repeat orders grew by 11% year-over-year[22] - Gross margin was 58.3%[22] - Adjusted EBITDA was $3.2 million, representing a 2.9% margin[22] - Net cash ended the period at $98.8 million, a 5% year-over-year increase[22, 27] Strategic Initiatives - The company opened one new showroom in Alpharetta, Georgia, bringing the total to 42 showrooms[27] - The company paid off its outstanding term loan balance of $34.8 million, resulting in zero debt[27] Future Outlook - The company projects third-quarter net sales growth of 8% to 10% year-over-year and adjusted EBITDA of $3 million to $4.5 million[51] - The company anticipates full-year net sales growth of 2.5% to 4% year-over-year and an adjusted EBITDA margin of 3% to 4%[51]