Brilliant Earth reported that sales dropped 13% in the third quarter, as the e-tailer proceeds with an expansion to 40 showrooms by the end of the year.
That will be more than double the brick-and-mortar locations Brilliant Earth had two years ago. The next opening, set for this fall, will be a ground-floor store in the Nolita neighborhood of Manhattan.
“The showrooms have held up nicely as the digital environmental remains competitive and promotional,” CEO Beth Gerstein said on a conference call following release of the company’s third-quarter earnings.
For the quarter ended Sept. 30, Brilliant Earth’s sales fell 13% from the previous year, to $99 million. That was in line with the company’s prior guidance, Gerstein said.
The sales drop was driven by a year-over-year decrease in average order value of 12%, to $2,337. The number of orders dipped 1%. Gross profit for the quarter declined 9%, to $60.8 million.
When asked about the Trump administration possibly imposing tariffs on all imports, Gerstein said, “We have a very diversified supply chain. We’ll be able to adapt very quickly as it relates to tariffs.”
She noted that Brilliant Earth has been dealing with rising gold prices all year. “We’re in a very dynamic price environment,” she said. “We are very agile.”
The company had also launched a “Rethink Everything You Know About Diamonds” campaign, which spotlights both natural and lab-grown diamonds.
Gerstein said Brilliant Earth has seen an “improvement in engagement ring booking trends,” raising hopes for an increase in engagements this holiday.
(Photo courtesy of Brilliant Earth)
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