Brilliant Earth has revised its revenue expectations downward for the full year, citing a sluggish market for diamonds and luxury goods. The company now projects annual revenue between $410 million and $425 million, a decrease from its previous estimate of $455 million to $469 million. Additionally, it has adjusted its earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to between $12 million and $16 million, down from the earlier range of $14 million to $22 million.
For the quarter ending June 30, sales fell 4.3% year-over-year to $105.4 million. This decline was attributed to an 8% drop in the average order value, despite a 3.6% increase in the number of orders. Net profit, however, rose by 11% to $1.4 million, benefiting from lower operating expenses and surpassing the company’s guidance range.
Beth Gerstein, CEO of Brilliant Earth, expressed satisfaction with the company’s performance amid challenging market conditions. “I am pleased with our ability to manage the business with agility and discipline,” Gerstein said. “We achieved quality order growth, expanded our gross margin, and exceeded profitability expectations. We are making progress on our strategic goals to position Brilliant Earth as the leading premium jewelry brand while investing for long-term growth.”
The company plans to open three new showrooms in the latter half of the year—two in Boston, Massachusetts, and one in New York City. This expansion will increase its total number of US showrooms to 40.
For the first half of the year, sales decreased by 2.5% to $202.8 million, while net profit more than tripled to $2.4 million, up from $795,000 a year ago. Brilliant Earth expects sales in the third quarter to drop by 11% to 14% year-over-year, with EBITDA remaining flat or showing slight growth.
