Brilliant Earth reported a mixed start to 2025, with a slight decline in first-quarter net sales, but an increase in overall order volume. The jewelry retailer highlighted a surge in engagement ring sales and strong performance during Valentine’s Day.
The company also marked its 15th consecutive profitable quarter since its public listing in 2021.
“Our strong engagement ring sales, combined with our best-ever Valentine’s Day, reinforce our confidence in our premium brand and unique product offerings,” said CEO Beth Gerstein in a statement.
For the first quarter of 2025, which ended on March 31, net sales fell by 4% to $93.9 million, compared to $97.3 million in the same period in 2023. This result was in line with the company’s forecast of $93.5 million to $95.5 million.
Gross profit was $55 million, yielding a 59% gross margin, slightly down from $58.3 million and a 60% margin a year earlier.
While net sales dipped, the total number of orders increased by 12%, with repeat orders up by 13%. However, the average order value (AOV) decreased by 14%. Brilliant Earth has noted that non-bridal jewelry sales are growing, but these items tend to have a lower price point, which contributes to the drop in AOV.
During an earnings call on Tuesday, CEO Beth Gerstein shared key highlights, including engagement ring sales, popular fashion jewelry styles, and the potential impact of tariffs on the company’s operations.
Gerstein acknowledged the ongoing issue of tariffs, noting that the company, like others in the industry, is monitoring the situation closely. “We feel confident that our diverse supplier base and strong relationships limit direct exposure to China,” she said. “Our data-driven team and pricing strategies provide us with an edge in adapting to market changes.”
Chief Financial Officer Jeff Kuo added that the company expects minimal impact from rising gold prices and tariffs on its gross margin in the second quarter. “We plan to mitigate these impacts through pricing adjustments and procurement strategies,” he said.
In response to high gold prices, Gerstein discussed the potential for future price increases, explaining that the company relies on data to inform pricing decisions. “We use our pricing optimization engine to carefully determine our prices,” she said. “We will continue testing and evaluating consumer demand.”
Despite cost pressures, Brilliant Earth has worked to keep expenses under control, acknowledging the financial strain many consumers face. The company’s proprietary collections provide flexibility in pricing, which Gerstein believes is an advantage.
Trends in engagement ring sales were described as “encouraging,” with the company seeing positive year-over-year growth in ring units and an increase in appointments to view engagement rings in showrooms.
The company also saw strong performance in engagement rings priced under $5,000, particularly from its signature collection. Sales of wedding and anniversary bands, especially men’s wedding bands and women’s eternity bands, also showed growth.
Brilliant Earth’s non-bridal jewelry business performed well, especially during the Valentine’s Day period. The company’s “Diamonds on the Menu” campaign, focused on authenticity and connection, contributed to the best Valentine’s Day performance in its history.
Key collections such as the “Heart” and “Signature” lines, along with the Jane Goodall collection, were particularly popular.
“Fine jewelry is a key investment and growth area for us, as it helps attract new customers and provides repeat purchase opportunities, whether for gifts or personal use,” Gerstein added.
While Brilliant Earth initially operated solely online, it has been expanding its physical retail presence. The company now operates 41 showrooms, including a new location in Southlake, Texas, opened in February. It plans to open one to two additional locations this year, including a showroom in Alpharetta, Georgia.
Looking ahead, the company expects net sales in the second quarter to be flat or down by 3% compared to the previous year. For the full year, Brilliant Earth maintains its forecast of a 1% to 3% increase in net sales.
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