Brilliant Earth Reports Decrease in Sales and Net Income for Fiscal Year 2024

Brilliant Earth Group, Inc. reported a decrease in financial performance for the fiscal year ending December 31, 2024, with net sales of $422.2 million, down 5.4% from $446.4 million in 2023. The company also experienced a decline in net income, which fell to $4.0 million from $4.7 million the previous year, resulting in a net income margin of 0.9%, compared to 1.1% in 2023. The decrease in sales was attributed to an 11.3% drop in average order value (AOV), partially offset by a 6.6% increase in order volume, driven by strong performance in lower-priced fine jewelry products and the opening of new showrooms.

In terms of operational developments, Brilliant Earth expanded its showroom presence to 40 locations across the United States as of December 31, 2024. The company has focused on enhancing its omnichannel experience, which combines online and in-store shopping, to cater to evolving consumer preferences. The total number of customers increased, contributing to the rise in order volume, while the company continues to leverage technology for product visualization and customer engagement. The company’s employee headcount stood at 756 full-time and 17 part-time employees, reflecting its growth strategy.

Brilliant Earth has also made strategic decisions to optimize its operations, including a reduction in marketing expenses by 9.2% to $108.3 million, while general and administrative expenses increased by 7.2% to $142.7 million, primarily due to higher employment costs. The company reported a gross profit of $254.4 million, with a gross margin improvement to 60.3%, up from 57.6% in the previous year, attributed to pricing optimization and procurement efficiencies. The company’s adjusted EBITDA for 2024 was $21.1 million, down from $26.2 million in 2023, with an adjusted EBITDA margin of 5.0%.

Looking ahead, Brilliant Earth aims to continue expanding its market presence both domestically and internationally, with plans to launch e-commerce in new overseas markets. The company is also focused on enhancing its product offerings and customer acquisition strategies to drive future growth. However, it faces challenges such as fluctuating consumer demand, supply chain disruptions, and the need to manage its operational costs effectively. The company’s liquidity position remains strong, with a cash balance of $161.9 million as of December 31, 2024, and it expects to meet its projected operating and tax distribution requirements for the next 12 months.