Brilliant Earth Group reported second-quarter net sales growth of 6% year-over-year to $115 million, exceeding the top end of prior guidance, while adjusted EBITDA reached $5.8 million—substantially above expectations. Gross margin expanded to just under 58%, a 300-basis-point improvement from the first quarter, as operating expenses improved by 250 basis points as a share of sales.
Average order value climbed to $2,200, though total order volumes declined 2% year-over-year. Excluding orders below $500—which account for roughly 5% of sales—order volume rose 5% year-over-year. The company ended the quarter with $75 million in cash and no debt, maintaining a current ratio of 1.58. Brilliant Earth’s stock has fallen approximately 54% over the past year, leaving its market capitalization at $130 million, with the company reporting negative $0.29 in earnings per share over the last twelve months.
Fine jewelry bookings surged 32% year-over-year, contributing 18% of total bookings in the quarter. Jewelry priced at $500 and above grew more than 40% year-over-year, positioning the segment on a path to a $100 million annual run rate. Wedding and anniversary bands posted double-digit bookings growth, while Mother’s Day gifting generated a 15% year-over-year increase during its two-week period.
The company operates 43 showrooms, including a recently opened smaller-format location in San Antonio and a Beverly Hills flagship that delivered 40% year-over-year bookings growth since opening through the end of Q2. Walk-in customer bookings rose 47% year-over-year in the second quarter, while appointment-based orders at the Beverly Hills store showed average order values 10% higher than typical appointments. The retailer’s inventory turns reached four times, compared with an industry average of one to two times, enabling product delivery in two to three weeks.
Brilliant Earth targets affluent millennials and Gen Z consumers aged 25 to 44 with household incomes between $100,000 and $200,000. The global jewelry market, valued at $350 billion and highly fragmented, is expected to grow at a 5% compound annual rate through 2030. Brilliant Earth represents less than 1% of the market, according to CFO Jeffrey Kuo.
For the full year, management guided to net sales of $459 million to $462 million and adjusted EBITDA of $13 million to $15 million, reflecting higher profitability than 2024. Third-quarter sales are expected to be roughly flat year-over-year, equating to about 10% growth on a two-year basis due to prior-year tariff-related pull-forward effects, with adjusted EBITDA projected between $3 million and $5 million.
