Brilliant Earth Group: A Diamond in the Rough
20/5 22:38
Brilliant Earth Group (BRLT) is an innovative, digital-first jewelry company. It offers exclusive designs delivered to customers through a highly personalized omnichannel experience. It focuses on one operating and reporting segment, which is the retail sale of diamonds, gemstones, and jewelry.
We are bullish on the stock because it is a very efficient company that creates value for shareholders. In addition, we believe the stock is undervalued.
Recent Earnings
Brilliant Earth reported a strong first quarter for 2022. Revenue came in at $100 million, beating the consensus estimate by $2.12 million. This equates to an increase of 41.5% year-over-year. Furthermore, non-GAAP earnings per share were in line with expectations at $0.05.
Unfortunately, the stock took a big tumble after the earnings report. The reason for the drop was that the company lowered its guidance for Fiscal Year 2022.
Management had initially expected revenue of $485 million to $500 million and adjusted EBITDA of $51 million to $55 million coming into the year. It now expects revenue of...