San Francisco — Brilliant Earth, the renowned jewelry brand, reported robust performance in 2023, marking record net sales and orders for both the fourth quarter and the full year.
CEO Beth Gerstein expressed satisfaction with the company’s achievements, stating, “In 2023, we again reported record net sales, orders, and gross margins, culminating in our fourth consecutive year of positive adjusted EBITDA.”
Gerstein emphasized the brand’s exceptional growth, estimating that its full-year 2023 net sales surpassed industry averages by 750 basis points. She attributed this success to Brilliant Earth’s premium brand, unique proprietary products, and seamless omnichannel shopping experience.
During the fourth quarter ending on December 31, net sales rose by 4 percent year-over-year to reach $124.3 million. However, net income declined by 69 percent to $1.9 million.
Gross profit for the quarter amounted to $73 million, reflecting a 59 percent gross profit margin, compared to $65.4 million and a 55 percent gross profit margin in the preceding year.
Despite a notable 18 percent increase in total orders, the average order value (AOV) in the fourth quarter decreased by 12 percent compared to 2022.
For the entire fiscal year, Brilliant Earth recorded a 2 percent increase in net sales, totaling $446.4 million. However, net income experienced a 75 percent decline, amounting to $4.7 million.
Acknowledging the company’s growing presence, Chief Financial Officer Jeff Kuo highlighted increased investments in marketing and employee resources during an earnings call. These investments, Kuo noted, contributed to heightened brand awareness and consumer demand.
Gross profit for the fiscal year reached $257 million, with a gross profit margin of 58 percent, compared to $234.3 million and a 53 percent margin in the previous year. While total orders surged by 17 percent year-over-year, AOV witnessed a 13 percent decrease.
Brilliant Earth observed a rising trend in the sales of non-bridal fine jewelry, albeit at a lower average price point, impacting AOV. Kuo commented, “As fine jewelry becomes a larger part of our product mix, we anticipate continued moderation in overall AOV.”
Gerstein highlighted customers’ increasing preference for Brilliant Earth’s essential jewelry pieces, such as tennis bracelets and necklaces, alongside popular styles like bangles and cocktail rings.
While known for its bridal offerings, Brilliant Earth expanded its fine jewelry selection, diversifying its revenue streams. This strategic move has proven beneficial amid challenges in engagement ring sales post-COVID-19.
The company’s collaboration with renowned designers and introduction of new collections, including Tacori, Jade Trau, and Logan Hollowell, has further enriched its product offerings.
Gerstein disclosed a 3 percent year-over-year increase in the average selling price for fine jewelry in Q4, marking the brand’s most successful quarter for fine jewelry sales to date.
In a forward-looking stance, Brilliant Earth continues its expansion beyond online platforms, with the opening of 12 new showrooms in 2023, exceeding its annual target of 35. Gerstein emphasized the importance of showrooms in driving growth, with plans to open two to four new locations in the latter half of 2024.
As the company navigates the year ahead, it anticipates first-quarter net sales of $96.5 million to $98.5 million, with adjusted EBITDA projected at $1 million to $2.5 million. Gerstein expressed confidence in achieving further market share gains amidst the ongoing normalization of the bridal and jewelry industry.
For fiscal 2024, Brilliant Earth forecasts net sales ranging from $455 million to $469 million, underlining its commitment to sustained growth and market leadership.
