- Brilliant Earth ( NASDAQ: BRLT ) is trading nearly -60% with shares near the $5 mark after the online jewelry company slashed its sales outlook for 2022 despite better-than-expected Q3 results.
- Revenue in Q3 was up +17% Y/Y to $111.4M and Non-GAAP EPS of $0.07 was above analysts' estimates. Gross margin expanded 460 basis points to 53.1%, its highest quarterly figures on record.
- However, average order value (AOV) saw a mid-single-digit percentage decline with the outperformance of fine jewelry and wedding bands, which have a lower average price point than the overall business.
- Brilliant Earth also noted "significant macroeconomic volatility" during the quarter.
- CEO Beth Gerstein said: "As we look to finish the year, the macro headwinds are more difficult than earlier in the year causing us to be more cautious about our fourth quarter revenue outlook. While our topline expectations have changed, we continue to expect adjusted EBITDA within our previously established outlook range."
- The company expects annual net sales of $436M-446M (vs analysts' consensus of $457.65M) and Q4 net sales of $116M-126M (vs$140.64M).
For further details see:
Brilliant Earth plunges 60% after slash in full-year outlook