Overview

* Brilliant Earth ( BRLT ) Q2 net sales rise 3% yr/yr, beating company and market expectations

* Adjusted EBITDA for Q2 exceeds company guidance, despite a GAAP net loss

* Co announces $0.25 per share one-time dividend for $25.3 mln total distribution

* Brilliant Earth ( BRLT ) pays off $34.8 mln term loan, leaving zero debt

Outlook

* Brilliant Earth ( BRLT ) sees Q3 net sales growth of 8% to 10% y/y

* Company expects Q3 adjusted EBITDA between $3 mln and $4.5 mln

* Brilliant Earth ( BRLT ) projects full-year net sales growth of 2.5% to 4%

* Company forecasts full-year adjusted EBITDA margin of 3% to 4%

Result Drivers

* ORDER GROWTH - Total orders grew 18% yr/yr, driven by high-single-digit unit growth in engagement rings and wedding bands

* SHOWROOM EXPANSION - Expanded retail showroom portfolio to 42 locations, contributing to increased sales

* MARKETING LEVERAGE - Strategic marketing initiatives, including partnerships with cultural icons like Beyoncé, accelerated brand momentum

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $108.90 $103.80

mln mln (6

Analysts

)

Q2 Beat $0.01 -$0.01

Adjusted (5

EPS Analysts

)

Q2 Net -$1.10

Income mln

Q2 $3.20

Adjusted mln

EBITDA

Q2 Gross 58.3%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

* Wall Street's median 12-month price target for Brilliant Earth Group Inc ( BRLT ) is $2.00, about 31% above its August 6 closing price of $1.38

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)