Brilliant Earth Sees Fine Jewelry Growth as Showroom Strategy Gains Momentum

Key Points

• Brilliant Earth’s second-quarter performance exceeded expectations: Net sales rose 6% year over year to $115 million, adjusted EBITDA reached $5.8 million, and gross margin improved to just under 58%. The company ended the quarter with $75 million in cash and no debt.
• Fine jewelry and showrooms are driving growth: Fine jewelry bookings increased 32% year over year and represented about 18% of total bookings, while the company expanded to 43 showrooms and reported strong gains in metro-area and walk-in bookings.
• The company expects profitable growth in 2026: Full-year guidance calls for net sales of $459 million to $462 million and adjusted EBITDA of $13 million to $15 million, supported by continued investments in product development, omnichannel retail, technology and operational scalability.

Brilliant Earth Group NASDAQ: BRLT Chief Financial Officer Jeffrey Kuo outlined the jewelry retailer’s growth strategy, recent quarterly performance and 2026 outlook at the IDEAS investor conference, emphasizing the company’s asset-light operating model, expanding showroom footprint and push into fine jewelry.

Kuo described Brilliant Earth as a next-generation fine jewelry company focused on transforming and modernizing the industry through sustainable sourcing, product design and an integrated digital and physical shopping experience. The company operates 43 showrooms and offers customers access to a broad jewelry assortment through supplier relationships and technology integrations.

Large, Fragmented Jewelry Market

Kuo said the global jewelry market represents a $350 billion opportunity and remains highly fragmented, with roughly two-thirds of the industry composed of smaller independent businesses. He said the market is expected to grow at approximately a 5% compound annual rate from 2025 through 2030.

Brilliant Earth represents less than 1% of the overall market, according to Kuo. He pointed to about 2 million annual marriages in the U.S. as a foundation for demand in the bridal category, while also highlighting the company’s opportunity to grow its presence in fine jewelry.

From 2019 through 2025, Brilliant Earth grew net sales at a 14% compound annual growth rate and total orders at a 23% six-year compound annual growth rate, Kuo said.

The company’s customer base is primarily affluent millennials and Gen Z consumers between ages 25 and 44, with annual household income of $100,000 to $200,000, he said. Kuo noted that couples increasingly shop together for engagement and wedding jewelry, shaping the company’s approach to customer experience across showrooms, its website, social channels, phone and chat.

Asset-Light Model and Omnichannel Expansion

Kuo said Brilliant Earth’s inventory model enables the company to provide customers with access to hundreds of thousands of diamonds while keeping most of those products off its balance sheet. The company works with suppliers to bring in products after they are ordered, allowing customers to receive items within two or three weeks, he said.

The company reports inventory turns of about four times, compared with what Kuo characterized as an industry average of roughly one to two times. He said the model supports efficient working capital management while preserving product breadth.

Brilliant Earth also uses data, technology and artificial intelligence in areas including pricing, customer journey analysis, marketing deployment and showroom placement, according to Kuo.

The company’s 43 showrooms complement its digital operations. Kuo said most showroom openings have delivered a strong double-digit increase in metro-area bookings during the 12 months after opening. Recent showroom initiatives include try-on bars and a “Date Night” experience at the Beverly Hills location, where couples can shop for engagement rings with champagne, light bites and photography.

The company opened its 43rd showroom in San Antonio, which Kuo said represents the second iteration of its showroom-of-the-future concept and applies the model to a smaller format.

Second-Quarter Results and Fine Jewelry Growth

For the second quarter, Brilliant Earth reported net sales of $115 million, up 6% year over year and above the high end of its guidance range. Average order value exceeded $2,200.

Total orders declined about 2% from the prior-year period. However, excluding orders below $500, which Kuo said represented only a small percentage of sales, orders rose 5% year over year. He attributed the performance in part to the company’s focus on higher-price-point customers and products.

• Gross margin was just under 58%, up more than 300 basis points sequentially.
• Marketing expense leverage improved by 130 basis points year over year.
• Adjusted operating expenses as a percentage of net sales improved by 250 basis points year over year.
• Adjusted EBITDA totaled $5.8 million, exceeding company guidance.
• The company ended the quarter with $75 million in cash and no debt.

Fine jewelry bookings increased 32% year over year in the second quarter and accounted for about 18% of total bookings. Kuo said fine jewelry bookings above $500 rose more than 40% from a year earlier. He said the fine jewelry operation is on a path to becoming a $100 million business.

Other second-quarter highlights included 15% year-over-year bookings growth during the two-week period leading up to Mother’s Day, double-digit growth in wedding and anniversary band bookings, and a 47% increase in showroom bookings from customers without appointments.

Kuo said bookings at the Beverly Hills flagship rose 40% year over year compared with the prior location from opening through the end of the second quarter. Average order values for appointments at the location were 10% higher than typical appointments, he said.

2026 Outlook

For the third quarter, Brilliant Earth expects approximately flat year-over-year net sales growth and adjusted EBITDA of $3 million to $5 million. Kuo said the year-over-year comparison includes consumer purchasing that was pulled forward in the prior-year third quarter ahead of potential tariffs; on a two-year basis, the company expects 10% growth.

For the full year, the company expects net sales of $459 million to $462 million and adjusted EBITDA of $13 million to $15 million. Kuo said the outlook reflects the company’s goal of growing profitably while continuing investments in product development, omnichannel retail capabilities, technology and operational scalability.

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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