Brilliant Earth Warns of Caution Among Consumers
November 13, 2022
RAPAPORT... Brilliant Earth lowered its outlook ahead of the crucial fourth quarter, noting that consumers were hesitant about making purchases.
The online-focused jeweler expects full-year sales of $436 million to $446 million, down from an earlier forecast of $450 million to $470 million, it said Thursday. Fourth-quarter revenue will be between $116 million and $126 million, compared with actual sales of $121.9 million a year earlier. The US company’s shares fell 26% Thursday following the news.
“While we’re pleased that we have continued to drive sustainable, profitable growth, as we look to finish the year, macro headwinds and the anticipated promotional environment are more difficult than earlier in the year, causing us to be more cautious about our fourth-quarter revenue outlook,” CEO Beth Gerstein said on an investor call transcribed by Seeking Alpha. “While we are still seeing strong consumer interest demonstrating the resonance of our brand, we are seeing a further lengthening of the decision-making process given the macroeconomic uncertainty as more customers take a wait-and-see approach.”
The adjustment came even as third-quarter sales rose 17% year on year to $111.4 million, reflecting the brand’s increased success among millennials and Gen Z-ers, the retailer reported. The company ratcheted up its use of TikTok after a study found that 13% of its customers learned about Brilliant Earth on that social platform; this led to a viewership increase on the site of more than 200%, management said. Group net profit jumped 44% to $5.7 million.
Image: A Brilliant Earth showroom. (Brilliant Earth)
Article originally published on Diamonds.net here