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Brilliant Earth Trims Sales Outlook
May 15, 2022 10:57 AM
By Rapaport News
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RAPAPORT... Brilliant Earth lowered its revenue guidance as geopolitical and economic concerns began to weigh on retail demand, even after strong first-quarter figures.
“As the second quarter progresses, we are seeing impact from the uncertain geopolitical and macroeconomic environment, reflected in moderating sales trends and in our updated outlook,” cofounder and CEO Beth Gerstein said Thursday.
The online-focused jeweler expects to bring in $450 million to $470 million in 2022, compared with an earlier outlook of $485 million to $500 million, management said Thursday. The updated total would still exceed the sales of $380.2 million the company registered in 2021.
The Ukraine conflict and “inflationary pressure” have increased uncertainty, chief financial officer Jeff Kuo added in an earnings call about the company’s quarterly results. While demand has been strong overall since the start of the second quarter, the rate of growth has slowed, especially in e-commerce, he explained.
Sales rose 42% year on year to $100 million in the first three months of 2022, prior to the downturn, the company reported. Fine jewelry was a major contributor to growth, while the retailer also benefited from the expansion of its showroom network, which offers viewings of merchandise at physical locations. Net profit jumped 40% to $3.4 million.
Shares in Brilliant Earth slid 34% on Nasdaq on Friday.
Image: A Brilliant Earth showroom. (Brilliant Earth)
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Tags:
Beth Gerstein, Brilliant Earth, e-commerce, Jeff Kuo, Jewelry, Rapaport News, retail, Ukraine, US
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