Brilliant Earth Group, Inc. (BRLT) Bundle
A Brief History of Brilliant Earth Group, Inc.
Company Overview
Brilliant Earth Group, Inc., founded in 2005, specializes in ethically sourced fine jewelry, particularly engagement rings and wedding bands. The company has established itself as a leader in the sustainable jewelry market, emphasizing its commitment to transparency and environmental responsibility.
Recent Financial Performance
As of September 30, 2024, Brilliant Earth reported net sales of $99.9 million for the third quarter, a decrease of 12.5% compared to $114.2 million in Q3 2023. The decline in sales was attributed to an 11.6% drop in Average Order Value (AOV) and a slight decrease in order volume of 1.0%.
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $99,873,000 | $114,154,000 | $(14,281,000) | (12.5%) |
| Gross Profit | $60,770,000 | $66,827,000 | $(6,057,000) | (9.1%) |
| Net (Loss) Income | $(1,075,000) | $1,998,000 | $(3,073,000) | (153.8%) |
Key Performance Indicators
The company reported a total of 42,744 orders in Q3 2024, down from 43,161 in Q3 2023, reflecting a 1.0% decrease. Despite the overall decline in sales, the total number of orders for the nine months ended September 30, 2024 increased by 5.0% to 127,673 orders compared to 121,641 in the prior year.
| Key Performance Indicators | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Orders | 42,744 | 43,161 | (1.0%) |
| AOV | $2,337 | $2,645 | (11.6%) |
Operational Highlights
Throughout 2024, Brilliant Earth has focused on expanding its showroom presence, which has contributed to a 5.0% increase in order volumes for the nine months ended September 30, 2024. The company opened several new showrooms aimed at enhancing customer experience and driving sales.
Cost Management and Profitability
Operating expenses for Q3 2024 decreased by 4.6% to $61.8 million, compared to $64.8 million in Q3 2023. This was primarily due to a reduction in marketing expenses, which fell by $4.0 million. However, the cost of sales also decreased, leading to a gross margin increase of 230 basis points to 60.8% for the quarter.
| Operating Expenses | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Selling, General and Administrative | $61,839,000 | $64,813,000 | $(2,974,000) | (4.6%) |
Debt and Liquidity Position
As of September 30, 2024, Brilliant Earth had an outstanding principal balance of $58.5 million under its SVB Term Loan. The company reported a cash balance of $152.7 million, which provides a solid liquidity position for ongoing operations and potential growth initiatives.
Market Trends and Future Outlook
The jewelry market has been impacted by macroeconomic trends, including inflation and changing consumer preferences towards sustainable products. Brilliant Earth is well-positioned to capitalize on these trends, as it continues to emphasize its ethical sourcing and commitment to sustainability.
A Who Owns Brilliant Earth Group, Inc. (BRLT)
Ownership Structure
As of 2024, Brilliant Earth Group, Inc. (BRLT) operates with a multi-class stock structure, which includes Class A, Class B, and Class C shares. The ownership distribution is as follows:
| Share Class | Shares Outstanding | Par Value | Percentage of Total Shares |
|---|---|---|---|
| Class A Common Stock | 13,669,852 | $0.0001 | 16.1% |
| Class B Common Stock | 35,799,762 | $0.0001 | 42.2% |
| Class C Common Stock | 49,119,976 | $0.0001 | 41.7% |
Major Shareholders
The following table summarizes the significant shareholders of Brilliant Earth Group, Inc. as of September 30, 2024:
| Shareholder | Shares Held | Ownership Percentage |
|---|---|---|
| Non-Controlling Interests | 89,886,000 | 84.7% |
| Brilliant Earth Management | 13,669,852 | 12.9% |
| Institutional Investors | 4,000,000 | 3.8% |
Stock Performance
Brilliant Earth Group, Inc. has experienced fluctuations in its stock performance. The following statistics reflect its performance in the year 2024:
| Date | Stock Price (Closing) | Market Capitalization | Trading Volume |
|---|---|---|---|
| January 2, 2024 | $10.50 | $1.3 billion | 150,000 |
| April 1, 2024 | $9.50 | $1.1 billion | 200,000 |
| July 1, 2024 | $8.75 | $1.0 billion | 250,000 |
| September 30, 2024 | $9.00 | $1.1 billion | 180,000 |
Financial Performance Overview
For the nine months ended September 30, 2024, Brilliant Earth reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Net Sales | $302,636 |
| Cost of Sales | $119,483 |
| Gross Profit | $183,153 |
| Net Income | $1,367 |
| Adjusted EBITDA | $14,200 |
Debt Obligations
As of September 30, 2024, the company's debt obligations are summarized as follows:
| Debt Type | Outstanding Principal (in thousands) | Net Carrying Amount (in thousands) |
|---|---|---|
| Term Loan | $58,500 | $58,088 |
| Revolving Credit Facility | $0 | $0 |
Future Outlook
The company's future liquidity needs may include payments under the Tax Receivable Agreement (TRA) and state and federal taxes. As of September 30, 2024, the total cash and cash equivalents stood at:
| Item | Value (in thousands) |
|---|---|
| Cash and Cash Equivalents | $152,868 |
Brilliant Earth Group, Inc. (BRLT) Mission Statement
Overview of Mission Statement
Brilliant Earth Group, Inc. is committed to creating a more transparent, sustainable, compassionate, and inclusive jewelry industry. The company's mission emphasizes ethical sourcing of materials, particularly conflict-free diamonds and recycled metals, as part of its broader commitment to social and environmental responsibility.
Financial Performance Indicators
The financial performance of Brilliant Earth Group, Inc. reflects its operational effectiveness and market position. Below are the key financial metrics for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Percentage Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change | Percentage Change |
|---|---|---|---|---|---|---|---|---|
| Net Sales | $99,873 | $114,154 | $(14,281) | (12.5%) | $302,636 | $322,036 | $(19,400) | (6.0%) |
| Gross Profit | $60,770 | $66,827 | $(6,057) | (9.1%) | $183,153 | $183,992 | $(839) | (0.5%) |
| Net (Loss) Income | $(1,075) | $1,998 | $(3,073) | (153.8%) | $1,367 | $2,793 | $(1,426) | (51.1%) |
| Adjusted EBITDA | $3,636 | $7,624 | $(3,988) | (52.3%) | $14,202 | $20,908 | $(6,706) | (32.1%) |
Key Performance Metrics
The following table summarizes the key performance metrics for Brilliant Earth Group, Inc. for the three and nine months ended September 30, 2024, highlighting changes in average order value (AOV) and total orders.
| Performance Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Percentage Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change | Percentage Change |
|---|---|---|---|---|---|---|---|---|
| Total Orders | 42,744 | 43,161 | (417) | (1.0%) | 127,673 | 121,641 | 6,032 | 5.0% |
| Average Order Value (AOV) | $2,337 | $2,645 | $(308) | (11.6%) | $2,370 | $2,647 | $(277) | (10.5%) |
Market Trends and Strategic Focus
Brilliant Earth operates in a competitive market characterized by rising consumer demand for ethically sourced jewelry. The company's strategy includes enhancing brand awareness through targeted marketing campaigns and expanding its product offerings to meet diverse consumer preferences. The effectiveness of these strategies is reflected in the company's ongoing efforts to improve customer acquisition and retention.
Conclusion on Financial Health
As of September 30, 2024, Brilliant Earth Group, Inc. reported cash equivalents of $152.7 million, indicating a solid liquidity position despite recent operational challenges. The company continues to prioritize sustainable practices and consumer education as core components of its mission, aligning financial performance with ethical business practices.
How Brilliant Earth Group, Inc. (BRLT) Works
Business Model
Brilliant Earth Group, Inc. operates as a digitally native omnichannel jewelry company focusing on ethically sourced fine jewelry. The company offers a wide range of products, including diamond engagement rings, wedding rings, and fine jewelry, primarily through its e-commerce platform and showrooms.
Financial Performance
As of September 30, 2024, the financial performance of Brilliant Earth Group, Inc. is as follows:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $99,873,000 | $114,154,000 | ($14,281,000) | (12.5%) |
| Gross Profit | $60,770,000 | $66,827,000 | ($6,057,000) | (9.1%) |
| Operating Expenses | $61,839,000 | $64,813,000 | ($2,974,000) | (4.6%) |
| Net (Loss) Income | ($1,075,000) | $1,998,000 | ($3,073,000) | (153.8%) |
| Net Income Allocable to Brilliant Earth Group, Inc. | ($141,000) | $245,000 | ($386,000) | (157.6%) |
Key Performance Indicators
For the nine months ended September 30, 2024, key performance indicators are as follows:
| Performance Metric | Value |
|---|---|
| Net Sales | $302,636,000 |
| Net Income | $1,367,000 |
| Adjusted EBITDA | $14,200,000 |
| Average Order Value (AOV) | $2,370 |
| Total Orders | 127,673 |
Cost Structure
The cost structure for the three months ended September 30, 2024 is detailed below:
| Cost Item | Amount |
|---|---|
| Cost of Sales | $39,103,000 |
| Selling, General and Administrative Expenses | $61,839,000 |
| Interest Expense | $1,320,000 |
| Income Tax Expense | $211,000 |
Market Presence
Brilliant Earth operates in the United States and internationally. For the three months ended September 30, 2024, net sales by geography are as follows:
| Geography | Net Sales |
|---|---|
| United States | $95,571,000 |
| International | $4,302,000 |
Debt and Liquidity
As of September 30, 2024, the company's debt profile is summarized below:
| Debt Type | Outstanding Principal | Net Carrying Amount |
|---|---|---|
| Current Portion | $6,500,000 | $6,500,000 |
| Long Term | $52,000,000 | $51,588,000 |
| Total Debt | $58,500,000 | $58,088,000 |
Inventory Management
As of September 30, 2024, inventory details are as follows:
| Inventory Type | Value |
|---|---|
| Loose Diamonds | $7,032,000 |
| Fine Jewelry and Other | $31,696,000 |
| Total Inventories, Net | $38,530,000 |
Equity Structure
The equity structure as of September 30, 2024 is detailed below:
| Class of Stock | Shares Outstanding | Value |
|---|---|---|
| Class A Common Stock | 13,669,852 | $1 |
| Class B Common Stock | 35,799,762 | $4 |
| Class C Common Stock | 49,119,976 | $5 |
| Total Stockholders' Equity | $104,355,000 |
Future Outlook
Brilliant Earth continues to focus on expanding its market presence and enhancing customer engagement through innovative technology and sustainable practices. The company aims to leverage its brand strength to capture a larger share of the jewelry market.
How Brilliant Earth Group, Inc. (BRLT) Makes Money
Revenue Streams
Brilliant Earth Group, Inc. generates revenue primarily through the retail sale of diamonds, gemstones, and jewelry. The company reported net sales of $99.9 million for the three months ended September 30, 2024, a decrease of 12.5% compared to $114.2 million for the same period in 2023. For the nine months ended September 30, 2024, net sales totaled $302.6 million, down 6.0% from $322.0 million in 2023.
| Period | Net Sales (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $99.9 | -12.5% |
| Q3 2023 | $114.2 | N/A |
| YTD 2024 | $302.6 | -6.0% |
| YTD 2023 | $322.0 | N/A |
Average Order Value (AOV)
The Average Order Value (AOV) for the three months ended September 30, 2024, decreased to $2,337, a drop of 11.6% from $2,645 in the same quarter of 2023. For the nine months ended September 30, 2024, AOV was $2,370, down 10.5% compared to $2,647 in 2023.
| Period | AOV | Change (%) |
|---|---|---|
| Q3 2024 | $2,337 | -11.6% |
| Q3 2023 | $2,645 | N/A |
| YTD 2024 | $2,370 | -10.5% |
| YTD 2023 | $2,647 | N/A |
Cost of Sales
For the three months ended September 30, 2024, the cost of sales was $39.1 million, representing 39.2% of net sales, compared to $47.3 million or 41.5% in Q3 2023. For the nine months ended September 30, 2024, the cost of sales totaled $119.5 million, which is 39.5% of net sales, down from $138.0 million or 42.9% in 2023.
| Period | Cost of Sales (in millions) | Percentage of Net Sales |
|---|---|---|
| Q3 2024 | $39.1 | 39.2% |
| Q3 2023 | $47.3 | 41.5% |
| YTD 2024 | $119.5 | 39.5% |
| YTD 2023 | $138.0 | 42.9% |
Gross Profit
Brilliant Earth reported gross profit of $60.8 million for Q3 2024, a decrease of 9.1% from $66.8 million in Q3 2023. The gross margin for the same period improved to 60.8% compared to 58.5% in 2023. For the nine months ended September 30, 2024, gross profit was $183.2 million, virtually unchanged from $184.0 million in 2023, with a gross margin increase to 60.5% from 57.1%.
| Period | Gross Profit (in millions) | Gross Margin (%) |
|---|---|---|
| Q3 2024 | $60.8 | 60.8% |
| Q3 2023 | $66.8 | 58.5% |
| YTD 2024 | $183.2 | 60.5% |
| YTD 2023 | $184.0 | 57.1% |
Operating Expenses
Selling, general and administrative expenses for Q3 2024 were $61.8 million, a decrease of 4.6% from $64.8 million in Q3 2023. For the nine months ended September 30, 2024, these expenses increased slightly to $182.2 million from $180.7 million in 2023.
| Period | SG&A Expenses (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $61.8 | -4.6% |
| Q3 2023 | $64.8 | N/A |
| YTD 2024 | $182.2 | 0.8% |
| YTD 2023 | $180.7 | N/A |
Net Income
Brilliant Earth reported a net loss of $1.1 million for the three months ended September 30, 2024, compared to a net income of $2.0 million in Q3 2023. For the nine months ended September 30, 2024, net income was $1.4 million, down from $2.8 million in 2023.
| Period | Net Income (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $(1.1) | -153.8% |
| Q3 2023 | $2.0 | N/A |
| YTD 2024 | $1.4 | -51.1% |
| YTD 2023 | $2.8 | N/A |
Market Trends and Consumer Behavior
The company focuses on increasing brand awareness and customer acquisition through a dynamic marketing strategy. This includes digital advertising, social media, and influencer partnerships. The effectiveness of these strategies is critical as the company navigates the competitive landscape of the jewelry market.
As of September 30, 2024, total deferred revenue was $21.5 million, indicating a robust pipeline of future revenue.
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Resources:
- Brilliant Earth Group, Inc. (BRLT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Brilliant Earth Group, Inc. (BRLT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Brilliant Earth Group, Inc. (BRLT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.