Brilliant Earth saw a slight drop in sales for the fourth quarter of 2022 (ended Dec. 31), as a record number of orders was undercut by a drop in average price.
Overall, the e-tailer’s net sales for the fourth quarter of 2022 decreased 1.9% to $119.6 million, compared with $121.9 million in the fourth quarter of 2021, according to financial results released March 15.
The decrease was fueled by a 13.7% drop in average order value, even as the number of orders also rose by 13.7%. Total sales for fiscal year 2022 were $439.9 million.
Net income totaled $6.2 million and $19.0 million for the fourth quarter and fiscal year, respectively.
On a conference call following the release of its financial results, CEO Beth Gerstein admitted the consumer environment was “volatile,” but added that “we feel great about the strength of our brand and the resilience of [the jewelry] category.
“The category is coming off some very strong growth in the last few years,” she said. “I do think 2023 will be more normalized.”
She noted that last year saw a wedding boom—the result of ceremonies postponed by COVID.
“While I think 2023 is going to be more normalized, I do think this is a pretty consistent and resilient category overall,” she said
She added that Brilliant Earth has been diversifying its product mix, adding more fine jewelry. Female self-purchase orders increased by 70% last year, she said.
Brilliant Earth opened 10 new showrooms over the year, bringing its U.S. showroom count to 25. It plans to open 10 more during 2023, including the showroom it just opened in Charlotte, N.C. It also has openings planned for Brooklyn, N.Y.; Tampa; and Pasadena, Calif.
The e-tailer also plans to test new showroom formats, including mall-based locations, and add services like personalization and customization.
Brilliant Earth executives didn’t mention the now-closed Silicon Valley Bank, which acts as its administrative agent and collateral agent for its credit lenders. The company didn’t respond by the time of publication to a query from JCK asking whether the bank’s closure will affect that arrangement.
However, in a likely reference to the bank’s headline-making issues, chief financial officer Jeffrey Kuo noted during the call, “We have historically diversified, and expect to continue maintaining, our cash holdings across multiple financial institutions.”
Kuo projected that Brilliant Earth’s sales for 2023 will be in the $460 million–$490 million range—a 5%-11% increase over fiscal 2022.
“We believe there’s a lot of trajectory for us to continue to grow and gain share over the long term, and make investments in things like growing awareness of the brand, increasing the showroom footprint, investments in fine jewelry,” he said.
Brilliant Earth also released its 2022 Mission Report, a look at how it was living up to its core values.
Photo courtesy of Brilliant Earth
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