Brilliant Earth Reports Third Quarter 2024 Results
Delivered Net Sales Within Guidance Range and Drove 11% Year-Over-Year Repeat Order Growth
Increased Third Quarter Gross Margin by 230 bps Year-Over-Year to 60.8%
Reported GAAP Diluted EPS of $(0.01) and Adjusted Diluted EPS of $0.02
Exceeded Profitability Expectations
Raises Profitability Guidance for the Year
SAN FRANCISCO, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. ("Brilliant Earth" or the "Company") (Nasdaq: BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced financial results for the three and nine months ended September 30, 2024.
Third Quarter 2024 Highlights (quarterly period ended September 30, 2024):
-- Delivered Net Sales of $99.9 million, in line with the Company's guidance
range, declining 13% year-over-year
-- Total orders approximately flat at -1% year-over-year and grew
repeat orders by 11% year-over-year
-- Drove strong year-over-year Bookings growth in wedding and
anniversary bands and fine jewelry
-- Grew Average Selling Price $(ASP.AU)$ year-over-year for wedding and
anniversary bands and fine jewelry
-- Introduced groundbreaking jewelry collection in partnership with Dr. Jane
Goodall and launched "Rethink Everything You Know About Diamonds"
campaign to share and amplify industry-defining innovations and
leadership in both lab and natural diamonds
-- Expanded Gross Margin by 230 basis points to 60.8% for the third quarter
2024 as compared to the prior year
-- Delivered 10 basis points of leverage in marketing expense as a
percentage of Net Sales for the third quarter 2024 as compared to the
prior year while continuing to make strategic investments in building
brand awareness
-- Generated strong non-GAAP profitability, exceeding the Company's guidance
range:
-- GAAP Net loss was $1.1 million for the third quarter 2024; and
-- Adjusted EBITDA was $3.6 million for the third quarter 2024
-- Expanding retail footprint in major metro areas with two locations in
Boston and the Company's first street-level location in New York City in
Nolita, bringing total showrooms to 40
"We are pleased to report third quarter results that again demonstrate our focus on executing our strategic initiatives in a dynamic environment while also delivering profitability. The strength of the Brilliant Earth brand, the resonance of our products, and the ability of our team to deliver continue to differentiate our Company," said Beth Gerstein, Co-Founder and Chief Executive Officer of Brilliant Earth. "Even as we exceeded our profitability guidance, we continued to make strategic, long-term investments in our brand, which was highlighted this quarter by our most successful fine jewelry collection launch yet with the renowned Dr. Jane Goodall. Along with our "Rethink Everything You Know About Diamonds" campaign, these brand achievements help solidify our leadership in groundbreaking diamond collections and transparent and responsible sourcing practices."
Gerstein continued, "As we enter the busy holiday period, we are encouraged by early indications of improvement in the bridal market and we believe staying focused on building and amplifying our premium brand and delivering an exceptional omnichannel experience for today's consumer will continue to position us well for both near and long-term growth."
Third Quarter Results
Q3 2024 Q3 2023 % Change*
------- ------- ---------
Total Orders 42,744 43,161 (1.0)%
AOV $ 2,337 $ 2,645 (11.6)%
($ in millions, except per share
amounts)
Net Sales $ 99.9 $ 114.2 (12.5)%
Gross Profit $ 60.8 $ 66.8 (9.0)%
Gross Margin 60.8% 58.5% 230bps
Net (loss) income allocable to
Brilliant Earth Group, Inc. (1) $ (0.1) $ 0.2 (150.0)%
Net (loss) income, as reported $ (1.1) $ 2.0 (153.8)%
Net (loss) income margin (1.1)% 1.8% (290)bps
Adjusted net income (3) $ 1.5 $ 4.8 (68.8)%
GAAP Diluted EPS (2) $ (0.01) $ 0.02 (150.0)%
Adjusted Diluted EPS (3) $ 0.02 $ 0.05 (60.0)%
Adjusted EBITDA (3) $ 3.6 $ 7.6 (52.3)%
Adjusted EBITDA margin (3) 3.6% 6.7% (310)bps
----------------------------------------- ------- ------- ---------
*Percentage changes may not recalculate due to rounding
(1) Represents net (loss) income allocable to Brilliant Earth Group, Inc. during the third quarter of 2024 and 2023.
(2) Represents GAAP Diluted EPS during the third quarter of 2024 and 2023.
(3) Adjusted net income, Adjusted Diluted EPS, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See "Disclosure Regarding Non-GAAP Financial Measures and Key Metrics" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.
Nine Month Results
YTD September 2024 YTD September 2023 % Change*
------------------ ------------------ ---------
Total Orders 127,673 121,641 5.0%
AOV $ 2,370 $ 2,647 (10.5)%
($ in millions,
except per share
amounts)
Net Sales $ 302.6 $ 322.0 (6.0)%
Gross Profit $ 183.2 $ 184.0 (0.4)%
Gross Margin 60.5% 57.1% 340bps
Net income
allocable to
Brilliant Earth
Group, Inc. (1) $ 0.2 $ 0.3 (33.3)%
Net income, as
reported $ 1.4 $ 2.8 (51.1)%
Net income margin 0.5% 0.9% (40)bps
Adjusted net
income (3) $ 7.6 $ 12.7 (40.2)%
GAAP Diluted EPS
(2) $ 0.01 $ 0.02 (100.0)%
Adjusted Diluted
EPS (3) $ 0.08 $ 0.13 (38.5)%
Adjusted EBITDA
(3) $ 14.2 $ 20.9 (32.1)%
Adjusted EBITDA
margin (3) 4.7% 6.5% (180)bps
------------------- ------------------ ------------------ ---------
*Percentage changes may not recalculate due to rounding
(1) Represents net income allocable to Brilliant Earth Group, Inc. during the nine months ended September 30, 2024 and 2023.
(2) Represents GAAP Diluted EPS during the nine months ended September 30, 2024 and 2023.
(3) Adjusted net income, Adjusted Diluted EPS, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See "Disclosure Regarding Non-GAAP Financial Measures and Key Metrics" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.
2024 Outlook
Full Year
Net Sales $410 million - $425 million
Adjusted EBITDA $14 million - $16 million
Webcast and Conference Call Information
Brilliant Earth will host a conference call and webcast to discuss third quarter results today, November 7, 2024, at 5:00 p.m. ET/2:00 p.m. PT. The webcast and accompanying slide presentation can be accessed at https://investors.brilliantearth.com. The conference call can be accessed by using the following link: https://register.vevent.com/register/BIcac1047b361945a287f74b587a90bb00. After registering, an email will be sent including dial-in details and a unique conference call pin required to join the live call. A replay of the webcast will remain available on the website after the live webcast concludes.
About Brilliant Earth
Brilliant Earth is a digitally native, omnichannel fine jewelry company and a global leader in ethically sourced fine jewelry. With 2023 full year Net Sales of $446 million and 13 consecutive quarters of positive adjusted EBITDA since its initial public offering in 2021, the Company's mission since its 2005 founding has been to create a more transparent, sustainable, and compassionate jewelry industry. Headquartered in San Francisco, CA and Denver, CO, Brilliant Earth has more than 35 showrooms across the United States and has served customers in over 50 countries worldwide.
Disclosure Regarding Non-GAAP Financial Measures and Key Metrics
In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company has included certain non-GAAP financial measures in this release, including Adjusted EBITDA, Adjusted Net income, Adjusted Diluted EPS and Adjusted EBITDA margin. These non-GAAP financial measures provide users of our financial information with useful information in evaluating our operating performance and exclude certain items from net income that may vary substantially in frequency and magnitude from period to period.
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