• Q4 Net Sales: $119.5 million, a 4% decline year over year.
• Full-Year Net Sales: $422.2 million, a 5% decline year over year.
• Total Orders Growth: 10% year over year in Q4; 7% for the full year.
• Repeat Orders Growth: 18% year over year in Q4; 17% for the full year.
• Gross Margin: 59.6% in Q4, a 90-basis-point expansion; 60.3% for the full year, a 270-basis-point expansion.
• Adjusted EBITDA: $6.9 million in Q4, a 5.8% margin; $21.1 million for the full year, a 5% margin.
• Average Order Value (AOV): $2,048 in Q4; $2,269 for the full year, representing declines of 13% and 11% year over year, respectively.
• Marketing Expenses Leverage: 340 basis points improvement in Q4; 100 basis points for the full year.
• Cash Position: Approximately $162 million at the end of Q4, with a net cash position of approximately $106 million.
• Showroom Count: 40 showrooms at the end of 2024.

• Warning! GuruFocus has detected 4 Warning Sign with BRLT.

Release Date: March 12, 2025

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

Positive Points

• Brilliant Earth Group Inc (NASDAQ:BRLT) achieved Q4 net sales of $119.5 million, at the high end of their guidance range.
• The company reported a 14th consecutive quarter of profitability as a public company.
• Repeat orders grew by 18% year over year in Q4, indicating strong brand loyalty.
• Gross margin expanded by 90 basis points year over year in Q4, reflecting premium brand positioning.
• The company ended the year with a strong net cash position of approximately $106 million, the highest since Q4 2021.

Negative Points

• Q4 net sales represented a 4% decline year over year.
• Full-year 2024 net sales were $422.2 million, a 5% decline year over year.
• Average order value (AOV) declined by 13% year over year in Q4.
• Operating expenses as a percentage of net sales increased year over year.
• The company anticipates Q1 net sales to be slightly down year over year.

Q & A Highlights

Q: Can you provide guidance on gross margin for 2025 and discuss any impact from fine jewelry on the mix? A: Jeffrey Kuo, CFO: We are guiding to a high 50s gross margin for 2025, driven by our brand strength, proprietary products, and price optimization. This extends across engagement, wedding, and fine jewelry.

Q: What strategies are in place to drive repeat order growth and attract new customers in 2025? A: Beth Gerstein, CEO: We are focusing on brand resonance and customer experience, introducing new collections like the Jane Goodall collection, and leveraging marketing campaigns. For new customers, we are optimizing marketing efficiency and engaging through influencer opportunities and social media.

Q: What factors will drive your long-term growth to achieve low teens growth, and what are the current engagement trends? A: Beth Gerstein, CEO: We are investing in showroom growth, fine jewelry, and maintaining our premium brand. Engagement ring trends are normalizing, with promising unit growth in Q4 and Q1. We expect AOV to moderate as fine jewelry grows.

Q: How do you balance physical showroom expansion with digital-first strategies, and what aspects of your investment story are underappreciated? A: Beth Gerstein, CEO: We are strategic in showroom locations, focusing on exceptional customer experiences. Our profitability, cash balance, and brand resonance are key strengths that may be underappreciated by the investment community.

Q: Can you explain the impressive marketing leverage achieved and its impact on retention metrics? A: Beth Gerstein, CEO: Our data-driven approach, diversified marketing channels, and showroom contributions have improved marketing efficiencies. We focus on quality revenue and maintaining profitability while investing in brand awareness.

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