Brilliant Earth Group Bets on Fine Jewelry and Showrooms to Spark Growth

Key Points

• Brilliant Earth is leaning into fine jewelry as a major growth driver, with the category up 33% last quarter and now making up 17% of sales. Executives said the segment has significant room to grow as it remains far less penetrated than at many rival jewelers.
• Showrooms are becoming a bigger part of the company’s omnichannel strategy, even though Brilliant Earth started as a digitally native brand. The company now has 42 showrooms, plans two more this year, and says physical locations are helping boost metro-area sales and fine jewelry growth.
• Management’s broader plan centers on brand building, showroom expansion and premium positioning rather than discounts. Brilliant Earth expects mid-single-digit sales growth and sees upside from low brand awareness, stronger marketing efficiency and expansion of its accessible-luxury customer base.

Brilliant Earth Group NASDAQ: BRLT executives outlined the jewelry company’s brand, retail and growth strategy during a hosted discussion featuring Chief Executive Officer Beth Gerstein and Chief Brand Officer Pamela Catlett.

The company, described in the event as a digitally native jeweler focused on ethically sourced and transparent diamonds, said it is continuing to broaden its positioning beyond its original mission-driven identity. Catlett said Brilliant Earth was established as a pioneer in natural diamonds roughly 20 years ago and became known as a purpose-driven company, but its customer relationships are increasingly being driven by “artistry, craftsmanship, and experience.”

Gerstein said the company continues to invest in brand awareness and cultural relevance while building on its historical strength in performance marketing. She described Brilliant Earth as a data-driven and technology-driven company that has been seeing customers recognize the brand more for design and experience.

Bridal Remains Core, Fine Jewelry Gains Ground

Gerstein said bridal remains an important part of Brilliant Earth’s business because it is often the customer’s first purchase and can lead to a long-term relationship with the brand. She said the bridal environment is “relatively normalized” and described diamond engagement rings as an enduring category.

The company is also emphasizing fine jewelry as a major growth avenue. Gerstein said fine jewelry grew 33% last quarter and now represents 17% of the company’s mix. She said that remains underpenetrated compared with many jewelers, where fine jewelry can account for roughly half or more of the business.

“We have a ton of headroom there,” Gerstein said, noting that the market is about $300 billion and that more customers are coming to Brilliant Earth because of its fine jewelry collection.

Catlett added that fine jewelry is increasingly becoming a customer’s first experience with the brand, which she said creates an opportunity alongside continued expansion in bridal.

Showrooms Seen as Key to Omnichannel Strategy

Although Brilliant Earth began as a digitally native company, executives said physical retail is becoming a more important part of its model. Catlett said the company has 42 showrooms today and has evolved from an appointment-only showroom format toward more ground-floor retail locations.

Catlett cited the company’s Nolita location on Elizabeth Street in New York as its first ground-floor New York showroom and said it was used to test expanded fine jewelry presentation. She also highlighted a recently opened flagship location in Beverly Hills on Beverly Drive, next to Erewhon, which she said has generated a positive early response and includes the company’s largest fine jewelry presentation.

Brilliant Earth plans two additional showrooms later this year, Catlett said. She added that the company uses a “surgical and strategic” expansion approach and holds new locations to a high return-on-investment standard.

Gerstein said physical showrooms help lift overall metro-area performance and compound fine jewelry growth. She said fine jewelry in showrooms grew 48% last quarter and has doubled over an 18-month period.

Marketing Strategy Emphasizes Cultural Relevance

Catlett said Brilliant Earth remains a “small, scrappy brand” that must pursue original and unexpected marketing opportunities rather than rely on the spending power of large luxury houses. She pointed to organic relationships and placements involving names such as Beyoncé, Selena Gomez and Jane Goodall, as well as a Ring Pop collaboration.

Catlett said the Jane Goodall partnership became the company’s best-selling fine jewelry collection in its history. She said the Ring Pop collaboration, which included cocktail rings in five colors, sold out and was brought back for Valentine’s Day due to customer demand.

Gerstein said Brilliant Earth has historically been an early adopter in social media and has maintained a full-funnel marketing approach. She said the company continues to invest in in-house capabilities to drive efficiency, while Catlett said increased performance marketing efficiency has allowed more investment in broader brand building.

Pricing, Supply Chain and Customer Mix

Gerstein said Brilliant Earth is seeing customers move into higher-value parts of its assortment, reflecting what she described as the “K-shaped economy” discussed by other companies. She said the company’s proprietary pricing engine helps it balance margin, unit growth and conversion while reacting quickly to changes in metal prices.

The company is also using technology and customer relationship management tools to improve personalization and retention. Gerstein said Brilliant Earth is investing in CRM and personalization capabilities, and she said artificial intelligence could create additional opportunities in customer communication.

On supply chain, Gerstein said Brilliant Earth’s asset-light model and geographically diverse supplier base provide flexibility in responding to tariffs and other changes. She said the company owns its styles, has flexibility in where products are manufactured and produced, and benefits from purchasing power and close vendor relationships.

Gerstein said Brilliant Earth offers both natural and lab-grown diamonds, which she said positions the company well for customers entering the bridal category.

Growth Outlook and Long-Term Positioning

Gerstein reiterated that the company’s growth strategy is centered on three areas: brand building, omnichannel showroom expansion and fine jewelry growth. She said those priorities helped drive 6% growth in the first quarter and support the company’s outlook for mid-single-digit sales growth.

Executives said the company sees additional runway from relatively low unaided brand awareness, continued showroom expansion and scaling fine jewelry toward more than $100 million in sales. Gerstein also said Brilliant Earth does not position itself as discount-oriented and does not do discounts, describing the brand as accessible luxury with a premium customer.

Asked what is underappreciated about the company, Gerstein pointed to the opportunity around its core customer and the trust the brand has developed over time. Catlett said the company’s discipline and unusual operating model are underappreciated, calling its execution “best in class.”

About Brilliant Earth Group NASDAQ: BRLT

Brilliant Earth Group, Inc NASDAQ: BRLT is a specialty retailer of ethically sourced fine jewelry, with a focus on conflict-free diamonds and lab-grown gemstones. The company offers a broad range of products that include engagement rings, wedding bands, necklaces, earrings and bracelets, all crafted with a commitment to environmental sustainability and social responsibility. Customers can choose from a variety of materials such as recycled precious metals, responsibly sourced gemstones and innovative lab-grown diamonds.

Operating primarily through its e-commerce platform and a network of branded showrooms across major U.S.

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