• Net Sales: $105.4 million, a decline of 4% year-over-year.

• Total Orders: Increased by 4% year-over-year.

• Repeat Orders: Grew by 17% year-over-year.

• Gross Margin: 60.8%, a 320 basis points increase year-over-year.

• Adjusted EBITDA: $5.5 million, representing a 5.2% margin.

• Average Order Value (AOV): Declined 8% year-over-year.

• Average Selling Price (ASP): Increased year-over-year across engagement rings, wedding bands, and fine jewelry.

• Showrooms: 37 showrooms with plans to open three more locations this year.

• Cash Position: Approximately $152 million, reflecting a year-over-year increase of $2.6 million.

• Inventory: Decreased by 3% year-over-year.

• Stock Repurchase: Approximately $160,000 of common stock repurchased in Q2.

• Q3 Net Sales Guidance: Expected to be down 11% to 14% year-over-year.

• Full-Year Net Sales Guidance: Expected to be in the range of $410 million to $425 million.

• Full-Year Adjusted EBITDA Guidance: Expected to be in the range of $12 million to $16 million.

• Warning! GuruFocus has detected 3 Warning Sign with BRLT.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Brilliant Earth Group Inc (NASDAQ:BRLT) reported its 12th consecutive quarter of profitability, demonstrating strong financial management.

• The company achieved a 17% year-over-year increase in repeat orders, indicating strong customer loyalty and retention.

• Gross margin expanded by 320 basis points year-over-year to 60.8%, reflecting the company's premium brand positioning.

• The men's wedding band assortment saw a significant 32% bookings growth year-over-year, highlighting successful product diversification.

• Brilliant Earth Group Inc (NASDAQ:BRLT) maintained a strong balance sheet with approximately $152 million in cash and no net debt, showcasing financial stability.

Negative Points

• Net sales declined by 4% year-over-year to $105.4 million, indicating challenges in revenue growth.

• The company faced a highly promotional environment with increased discounting activity, impacting overall industry conditions.

• Average order value declined by 8% year-over-year, suggesting pressure on pricing or product mix.

• Bridal sales were down in the low double digits, reflecting ongoing challenges in the engagement market.

• The company anticipates a weaker than expected consumer environment and headwinds in bridal and e-commerce for the remainder of the year.

Q & A Highlights

Q: Could you discuss the nature of bridal comparisons ahead and opportunities for share growth? What gives you confidence in the multiyear recovery path? A: Beth Gerstein, CEO: In Q2, bridal was down in the low double digits and has slightly worsened since. However, our Signature Collection campaign showed 6% year-over-year growth, and showroom engagement rings saw a 9% increase. We focus on sustainable growth, leveraging marketing and diversifying into fine jewelry and wedding collections.