BRLT Stock Forecast & Price Target

Brilliant Earth Group Inc. reported impressive financial performance, with net sales increasing by 10.4% year-over-year to $110.3 million, surpassing consensus estimates and guidance expectations. The company demonstrated strong growth in total orders, which rose by 16.8% year-over-year, reflecting effective customer acquisition and loyalty, alongside a notable resurgence in engagement ring bookings. Furthermore, Brilliant Earth achieved record bookings in wedding and anniversary bands and a 45% increase in fine jewelry bookings, highlighting robust demand across its key product categories.

Brilliant Earth Group Inc. experienced significant financial challenges, highlighted by a notable contraction in gross margin by over 300 basis points, which fell to 57.6% and was well below market expectations. This decline in gross margin directly impacted adjusted EBITDA, resulting in a margin of 3.2%, reflecting a year-over-year contraction of 40 basis points and falling short of consensus estimates. Furthermore, projections for FY25 adjusted EBITDA have been revised down to $13.2 million, a substantial decrease from previous forecasts and a significant decline compared to last year's figure of $21.1 million, indicating ongoing pressure from rising metal prices and tariffs.