BRLT Stock Forecast & Price Target

Brilliant Earth Group Inc demonstrated robust financial performance, with total net sales increasing by 10.4% year-over-year to $110.3 million, surpassing growth expectations. The significant growth in engagement ring bookings, record high sales of wedding and anniversary bands, and a notable 45% surge in fine jewelry bookings contribute to a positive sales trajectory, as evidenced by total orders rising 16.8% to 49,910. Additionally, the company's total inventory grew by 27.5% year-over-year, indicating an effective inventory management strategy aligned with heightened consumer demand and engagement trends.

Brilliant Earth Group Inc. experienced a contraction in gross margin of over 300 basis points, landing at 57.6%, significantly below market expectations and contributing to an adjusted EBITDA shortfall. The company's adjusted EBITDA margin fell to 3.2%, a decrease from 3.6% the previous year, indicating ongoing pressure on profitability. Additionally, forecasts for FY25 adjusted EBITDA have been revised down to $13.2 million from an earlier estimate of $16.0 million, highlighting expected continued margin pressure due to rising metal prices and increased tariffs.