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1. Company Snapshot

1.a. Company Description

Brilliant Earth Group, Inc.engages in the design, procurement, and retail sale of diamonds, gemstones, and jewelry in the United States and internationally.Its product assortment and merchandise include a collection of diamond engagement rings, wedding and anniversary rings, gemstone rings, and fine jewelry.


The company sells directly to consumers through its omnichannel sales platform, including e-commerce and showrooms.As of December 31, 2021, it had 15 showrooms.The company was founded in 2005 and is headquartered in San Francisco, California.

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1.b. Last Insights on BRLT

Here is a 90-word analysis of the negative drivers behind Brilliant Earth Group, Inc.'s recent stock performance: Brilliant Earth's upcoming Q4 and FY 2024 earnings report may be a source of uncertainty, potentially weighing on the stock. Despite maintaining profitability and avoiding discounts, the company's premium jewelry brand may be vulnerable to macroeconomic headwinds. Additionally, the lack of significant catalysts, such as share buybacks or new product launches, may be contributing to the stock's recent stagnation.

1.c. Company Highlights

2. Strong Q3 Performance with Revenue Growth and Margin Resilience

The company delivered a robust Q3 performance, with net sales growing 10.4% year-over-year to $110.3 million, exceeding the top end of the guidance range by approximately 40 basis points. The gross margin stood at 57.6%, within the medium-term target range of the high 50s, despite industry-wide headwinds from record gold and platinum prices and changes in the tariff environment. The adjusted EBITDA margin was 3.2%, within the midpoint of the guidance range. Actual EPS came out at $0.02, in line with estimates.

Publication Date: Nov -29

📋 Highlights
  • Net Sales Growth:: Q3 net sales reached $110.3 million, reflecting a 10.4% year-over-year increase, surpassing guidance by 40 basis points.
  • Gross Margin Resilience:: Maintained a 57.6% gross margin amid record gold/platinum prices and tariffs, aligning with medium-term targets in the high 50s.
  • Engagement Ring Recovery:: Bookings surged 45% YoY, driven by unit and ASP growth, signaling a sustained bridal market rebound.
  • Customer Retention Success:: Total orders grew 17% YoY, with repeat orders rising 16% YoY, highlighting effective retention strategies.
  • Full-Year Guidance Raised:: Fiscal 2025 net sales guidance increased to 3-4.5% growth, supported by engagement ring momentum and fine jewelry expansion.

Drivers of Growth

The growth was driven by a 45% year-over-year increase in fine jewelry bookings, with both unit and ASP growth contributing to the surge. Engagement ring bookings returned to growth, with a significant improvement in bookings. As Beth Gerstein, CEO, noted, "We've been pleased with the consumer demand that we have been seeing." The company's data-driven approach and globally diversified supply chain enabled it to navigate the challenging environment effectively.

Outlook and Guidance

The company raised its full-year net sales guidance to 3% to 4.5% growth year-over-year, driven by improvements in engagement ring bookings, strong fine jewelry performance, and the growth and annualization of showrooms. Analysts estimate next year's revenue growth at 4.1%. For Q4, the company expects some impact from gold and platinum spot prices, which are near all-time highs, but is well-positioned to navigate this environment.

Valuation Metrics

With a P/S Ratio of 0.27, the stock appears undervalued relative to its sales. However, the negative P/E Ratio of -5.71 and ROE of -31.29% indicate that the company's profitability is a concern. The EV/EBITDA ratio of -10.28 also suggests that the company's enterprise value is high relative to its EBITDA. The Dividend Yield of 13.59% is attractive, but the sustainability of the dividend is uncertain given the company's negative ROE.

3. NewsRoom

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Brilliant Earth: The Dividend Rush Is Over, Now The Fundamentals Kick In

Nov -27

Source: seekingalpha.com

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Brilliant Earth Announces Participation in Upcoming December Investor Conferences

Nov -24

Source: globenewswire.com

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Brilliant Earth Announces Participation in Upcoming November Investor Conferences

Nov -13

Source: globenewswire.com

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Brilliant Earth Group, Inc. (BRLT) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Brilliant Earth Group, Inc. (BRLT) Q3 Earnings Match Estimates

Nov -05

Source: zacks.com

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Brilliant Earth Reports Strong Q3 Results Exceeding High End of Net Sales Guidance and 17th Consecutive Quarter of Positive Adjusted EBITDA

Nov -05

Source: globenewswire.com

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Brilliant Earth to Report Third Quarter 2025 Financial Results on November 5th

Oct -16

Source: globenewswire.com

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New Strong Sell Stocks for October 8th

Oct -08

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Diamonds, Gemstones and Jewelry

Expected Growth: 5%

Brilliant Earth Group, Inc.'s 5% growth in Diamonds, Gemstones, and Jewelry is driven by increasing consumer demand for sustainable and ethically sourced luxury goods, expansion into new markets, and strategic investments in e-commerce and digital marketing, as well as growing popularity of lab-created diamonds and bespoke jewelry designs.

7. Detailed Products

Diamond Jewelry

Brilliant Earth offers a wide range of diamond jewelry, including engagement rings, wedding bands, earrings, and pendants, featuring high-quality diamonds certified by organizations such as the Gemological Institute of America (GIA) and the International Gemological Institute (IGI).

Lab-Created Diamonds

Brilliant Earth offers lab-created diamonds, which are environmentally friendly and more affordable than traditional diamonds, with the same physical and chemical properties as natural diamonds.

Recycled Metals

Brilliant Earth offers jewelry made from recycled precious metals, reducing the environmental impact of mining and promoting sustainability.

Custom Jewelry

Brilliant Earth offers custom jewelry design services, allowing customers to create unique pieces tailored to their personal style and preferences.

Fine Jewelry

Brilliant Earth offers a range of fine jewelry pieces, including necklaces, bracelets, and earrings, featuring precious metals and gemstones.

8. Brilliant Earth Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Brilliant Earth Group, Inc. faces moderate threat from substitutes, as customers have limited alternatives for high-quality, ethically sourced diamonds and fine jewelry.

Bargaining Power Of Customers

Brilliant Earth Group, Inc. has a strong brand reputation and unique selling proposition, which reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Brilliant Earth Group, Inc. has a diversified supplier base, but still faces some pressure from suppliers of high-quality diamonds and precious metals.

Threat Of New Entrants

Brilliant Earth Group, Inc. has a strong brand presence and established relationships with suppliers, making it difficult for new entrants to compete.

Intensity Of Rivalry

Brilliant Earth Group, Inc. operates in a highly competitive industry, with intense rivalry among established players and new entrants.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.76%
Debt Cost 4.65%
Equity Weight 16.24%
Equity Cost 12.15%
WACC 5.87%
Leverage 515.71%

11. Quality Control: Brilliant Earth Group, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Brilliant Earth

A-Score: 6.0/10

Value: 6.7

Growth: 5.4

Quality: 6.6

Yield: 10.0

Momentum: 6.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Movado

A-Score: 5.9/10

Value: 6.6

Growth: 1.8

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Envela

A-Score: 5.0/10

Value: 3.2

Growth: 7.4

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
The RealReal

A-Score: 4.6/10

Value: 6.4

Growth: 5.9

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Fossil

A-Score: 4.4/10

Value: 9.8

Growth: 2.1

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Charles & Colvard

A-Score: 2.6/10

Value: 10.0

Growth: 1.0

Quality: 3.8

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.96$

Current Price

1.96$

Potential

-0.00%

Expected Cash-Flows