BRLT Stock Forecast & Price Target

Brilliant Earth Group Inc. demonstrated strong financial performance, achieving a net sales increase of 10.4% to $110.3 million in the most recent quarter, surpassing consensus expectations. Total inventory grew by 27.5% year-over-year to $49.1 million, indicating effective stock management to meet rising demand, while total orders increased by 16.8% to nearly 50,000, reflecting robust customer engagement and loyalty. Key product categories such as engagement rings and fine jewelry experienced notable growth, with the company reporting record bookings and a revival in customer spending patterns, which supports a positive outlook for future performance.

Brilliant Earth Group experienced a contraction in its gross margin, declining over 300 basis points year-over-year to 57.6%, significantly missing market expectations which anticipated a smaller decline. Furthermore, adjusted EBITDA margins also showed a contraction of 40 basis points to 3.2%, reflective of the broader pressure on profitability, compounded by rising metal prices and tariffs. The company's revised forecast for FY25 adjusted EBITDA has been reduced to $13.2 million, down from previous estimates and considerably lower than the $21.1 million reported the prior year, indicating ongoing challenges in maintaining financial performance.