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]

Financial Data and Key Metrics Changes - Q4 net sales were $119.5 million, representing a 4% decline year-over-year, while full-year net sales reached $422.2 million, a 5% decline year-over-year [7][30] - Total orders grew by 10% year-over-year in Q4 and 7% year-over-year for the full year, with repeat orders increasing by 18% in Q4 and 17% for the full year [8][30] - Gross margin expanded by 90 basis points year-over-year in Q4 to 59.6%, and by 270 basis points for the full year to 60.3% [9][32] - Adjusted EBITDA for Q4 was $6.9 million, with a margin of 5.8%, significantly exceeding guidance, while full-year adjusted EBITDA was $21.1 million, or a 5% margin [11][33] Business Line Data and Key Metrics Changes - Engagement rings showed improved year-over-year unit comps in Q4, with strong performance in price ranges under $5,000 [13][14] - The fine jewelry segment recorded strong double-digit bookings growth in Q4, contributing 27% of total bookings, a 600 basis point increase year-over-year [17][21] - The company launched the Flawless Collection, which has performed strongly, indicating customer trust in the brand [15] Market Data and Key Metrics Changes - The company opened new showroom locations in New York City and Boston, contributing to increased customer engagement and bookings [20][21] - The fine jewelry assortment saw significant growth, particularly during the holiday season, indicating a shift in consumer preferences towards gifting and self-purchase [18][19] Company Strategy and Development Direction - The company aims to drive sustainable long-term growth by enhancing the omnichannel experience, offering premium products, and investing in brand amplification [23][24] - Plans for 2025 include expanding showroom locations and continuing to innovate product offerings, particularly in fine jewelry [24][25] - The company is focused on maintaining a premium brand positioning while navigating a dynamic macroeconomic environment [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the bridal business and the overall engagement ring market, anticipating continued improvement in unit trends [26][63] - The company expects Q1 net sales to be slightly down year-over-year but anticipates a slight sequential improvement from Q4 [26][27] - For the full year, net sales are expected to grow slightly, with profitability anticipated to be lower due to strategic investments [27][43] Other Important Information - The company ended Q4 with approximately $162 million in cash, reflecting a year-over-year increase, and a net cash position of approximately $106 million [39][40] - The company has a disciplined approach to managing expenses, with operating expenses as a percentage of net sales slightly increasing year-over-year [34][38] Q&A Session Summary Question: What is the gross margin guidance for 2025? - Management expects a high-50s gross margin for 2025, driven by brand strength and procurement efficiencies [48][49] Question: What strategies are in place to drive repeat orders? - The company focuses on brand resonance and customer experience, along with introducing new collections to drive repeat orders [51][54] Question: What are the engagement trends and how do they affect guidance? - Management noted improvements in engagement ring unit trends and expects continued growth driven by showroom investments and fine jewelry success [63][66] Question: How does the company view the balance between physical and digital sales? - The company sees opportunities in both channels and is strategic about showroom locations to enhance customer experience [71][72] Question: What are the key features of the investment story that may be underappreciated? - The company's consistent profitability, strong cash position, and unique brand resonance are highlighted as key strengths [73][75]