Q4 2021 Brilliant Earth Group, Inc. Earnings Call
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Ladies and gentlemen, thank you for standing by and welcome to Brilliant Earth's fourth quarter and fiscal year 2021 earnings call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Allison Malkin of ICR. Thank you.
Ladies and gentlemen, thank you for standing by and welcome to brilliant skirts fourth quarter and fiscal year 2021 earnings call. At this time all participants are in a listen only mode. After the speaker presentation there'll be a question and answer session. Please be advised that today's conference is being recorded I would now like to hand the conference over to.
Allison Malkin of ICR.
Thank you and please go ahead.
Allison Malkin: Thank you. Good afternoon, everyone. Thank you for joining us for our fourth quarter and fiscal year 2021 conference call. Joining me today are Beth Gerstein, our Chief Executive Officer, and Jeff Kuo, our Chief Financial Officer.
Thank you good afternoon, everyone. Thank you for joining us for our fourth quarter and fiscal year 2021 conference call. Joining me today are Beth Gerstein, our chief.
<unk> officer, and Jeff <unk>, our Chief Financial Officer for this morning's call Beth will begin with an overview of the company our differentiation admission highlights of our fourth quarter and fiscal year financial and operational performance and the drivers of our future growth Jeff.
Allison Malkin: For this morning's call, Beth will begin with an overview of the company, our differentiation and mission, highlights of our fourth quarter and fiscal year financial and operational performance, and the drivers of our future growth.
Allison Malkin: Jeff will follow with more details on our fourth quarter and fiscal year financial results and introduce our guidance.
We'll follow with more details on our fourth quarter and fiscal year financial results and introduce our guidance following the.
Allison Malkin: Following this, the operator will begin the Q&A session with our presenters, Beth and Jeff, available to answer the questions you have for us today.
The operator will begin the Q&A session with our presenters that and Jeff are available to answer the questions you have for us today.
Speaker Change: Before we start, I would like to remind you that management will make certain remarks today that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
Before we start I would like to remind you that management will make certain remarks today that are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. These forward looking statements are subject to risks and uncertainties that could cause.
Actual results to differ materially please refer to our SEC filings for a description of the risks that could cause our actual performance and the results to differ materially from those expressed or implied in these forward looking statements. These forward looking statements reflect our opinions.
Speaker Change: please refer to our SEC filings for a description of the risks that could cause our actual performance and the results to differ materially from those expressed or implied in these forward-looking statements.
Speaker Change: These forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.
Only as of the date of this call and we undertake no obligation to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events also during this call we will discuss both GAAP and non-GAAP financial.
Speaker Change: Also, during this call, we will discuss both GAAP and non-GAAP financial measures.
Measures you will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP to GAAP measures in todays earnings release, which is available at the Investor Relations section of our website at investors that brilliant Earth dotcom a.
Speaker Change: You will find additional information regarding these non-GAAP financial measures.
Speaker Change: and a reconciliation of these non-gap-to- GAAP measures in today's earnings release, which is available at the Investor Relations section of our website at Investors.BrilliantEarth.com.
Speaker Change: A live broadcast of this call is also available at the Investor Relations section of our website. With that, I'll turn the call over to Beth.
Live broadcast of this call is also available at the Investor Relations section of our website with that I'll turn the call over to that.
Hello, everyone and thank you for joining us today.
Beth Gerstein: The fourth quarter represented an excellent finish to a strong year of growth at Brilliant Earth, highlighted by better-than-expected performance across our key financial methods.
The fourth quarter represented an excellent finish to a strong year of growth that brilliant earth highlighted by better than expected performance across our key financial metrics, surpassing the outlook, we introduced on our third quarter earnings call last November .
Beth Gerstein: surpassing the outlook we introduced on our third quarter earnings call last November .
Beth Gerstein: We believe this reflects the continued resonance and growing embrace of our brand with millennial and Gen Z consumers.
We believe this reflects the continued residents and growing embrace of our brand with millennial and Gen Z consumers.
Beth Gerstein: It also further reinforces key tenets of our story, that Brilliant Earth is a global leader in jewelry, we're successfully executing our strategy to transform and modernize the jewelry industry, and our data-driven asset-light business model is a huge competitive and financial advantage.
It also further reinforces the key tenets of our story that brilliant Earth is a global leader in jewelry were successfully executing our strategy to transform and modernize the jewelry industry and our data driven asset light business model is a huge competitive and financial advantage.
Beth Gerstein: As we look ahead, we see tremendous runway to build upon our competitive advantages in design, supply chain, and technology.
As we look ahead, we see tremendous runway to build upon our competitive advantages in design supply chain and technology and grow our digitally native omnichannel presence as the next generation fine jeweler for millennial and Gen Z consumers.
Beth Gerstein: and grow our digitally native omnichannel presence as the next generation fine jeweler for millennial and Gen Z consumers.
Beth Gerstein: Our confidence is grounded in the increasing strength of our brand, the power of our model to drive growth, and our 16-year track record through various macro environments.
Our confidence is grounded in the increasing strength of our brand the power of our model to drive growth and our 16 year track record through various macro environments.
Beth Gerstein: For today's call, our CFO , Jeff Kuo, and I would like to provide you with highlights of our fourth quarter and fiscal year performance and then review the priorities we have set for the business as we begin 2022.
For today's call are CFO , Jeff well and I would like to provide you with highlights of our fourth quarter and fiscal year performance and then review the priorities we have set for the business as we begin 2022 for.
For the fourth quarter.
Jeff Kuo: Net sales were $121.9 million, representing our highest ever quarterly sales performance.
Net sales were $121 9 million, representing our highest ever quarterly sales performance, increasing 38% from Q4 last year and up 93% from Q4 2019.
Jeff Kuo: increasing 38 percent from Q4 last year and up 93 percent from Q4 2019.
Jeff Kuo: Gross margin expanded 407 basis points to 51.1%.
Gross margin expanded 407 basis points to 51, 1% and adjusted EBITDA was $15 9 million or 13, 1% of net sales.
Jeff Kuo: and adjusted EBITDA was $15.9 million or 13.1% of net sales.
Jeff Kuo: For the 2021 year, net sales were $380.2 million, a 51% increase from 2020 and up 89% from 2019.
For the 2021 year.
Net sales were $380 2 million or 51% increase from 2020 and up 89% from 2019.
Jeff Kuo: Gross margin expanded 470 basis points to 49.3%.
Gross margin expanded 470 basis points to 49, 3%.
Jeff Kuo: and adjusted EBITDA rose 83.4 percent to over 50 million dollars with a margin of 13.3 percent.
And adjusted EBITDA Rose 83, 4% to over $50 million with a margin of 13, 3%.
Speaker Change: Before Jeff dives into the results further, I want to share my perspective on the year and to give you a glimpse into our plans to continue driving strong brand, revenue, and profit growth in the coming year.
Before Jeff dives into the results further I want to share my perspective on the year and to give you a glimpse into our plans to continue driving strong brand revenue and profit growth in the coming year.
Speaker Change: 2021 was an incredible year for Brilliant Earth, and today's results reflect the talent and commitment of our extraordinary team. I'm very proud of what we accomplished this year. Together, we marked several noteworthy.
2021 was an incredible year for brilliant Earth and today's results reflect the talent and commitment of our extraordinary team I'm very proud of what we accomplished this year together remarks, several noteworthy accomplishments.
First the brand.
Speaker Change: Our fast-growing revenue through the year reflects market share gains in the $280 billion global jewelry industry.
Our fast growing revenue through the year reflects market share gains in the $280 billion global jewelry industry, we experienced significant growth across our product assortment in our showrooms and on our website as more consumers both discovered and fell in love with brilliant Earth.
Speaker Change: we experienced significant growth across our product assortment, in our showrooms, and on our website, as more consumers both discovered and fell in love with Brillianr.
Speaker Change: We are continuing to gain, share, and establish category leadership for a younger audience who increasingly recognizes that the Brilliant Earth brand meets and exceeds their expectations for beauty, quality, and responsibility without compromise.
We are continuing to gain share and established category leadership for a younger audience, who increasingly recognizes that the brilliant earth brand meets and exceeds their expectations for beauty quality and responsibility without compromise and they share our commitment to sustainability.
Speaker Change: and they share our commitments to sustainability, transparency, giving back, and inclusion.
Transparency, giving back and inclusion.
Speaker Change: Second, the experience. We are reinventing retail by creating a joyful, omni-channel, experiential approach that fuels increased demand. We're very pleased that our showroom strategy continues to enhance our already strong results, and during the year, surpassed our high expectations across markets and formats.
The experience, we are reinventing retail by creating a joyful omnichannel experiential approach that fuels increased demand. We're very pleased that our showroom strategy continues to enhance our already strong results and during the year surpassed our high expectations across markets and.
Speaker Change: We substantially expanded our retail presence with the opening of six showrooms during the year in Seattle, Portland, Austin, Dallas, New York, and Scottsdale to end the year with 15 locations.
Formats, we substantially expanded our retail presence with the opening of six showrooms starting the year in Seattle, Portland, Austin, Dallas, New York, and Scottsdale to end the year with 15 locations initial indications of performance in our newly launched showrooms are even stronger than our past in fee.
Speaker Change: Initial indications of performance in our newly launched showrooms are even stronger than our past. In fact, new showrooms are driving a higher average uplift in bookings growth within the metro market than prior showrooms. As we have executed our strategy, we've experimented
Fact, new showrooms are driving a higher average uplift in bookings growth within the metro market than prior showrooms.
As we have executed our strategy, we've experimented with and refined our formats to continuously elevate the customer experience and to drive ROI. This iterative approach is working and its demonstrated through the strong are why we are generating across various formats. This.
Speaker Change: to continuously elevate the customer experience and to drive ROI. This iterative approach is working and is demonstrated through the strong ROI we are generating across various formats.
Speaker Change: This continued success as we have rolled out new locations reinforces our belief in the power of our showroom model.
<unk> success as we have rolled out new locations reinforces our belief in the power of our showroom model and as we anticipate consumers looking for more in person shopping experiences ahead, we are well positioned to capitalize on this demand.
Speaker Change: And as we anticipate consumers looking for more in-person shopping experiences ahead, we are well positioned to capitalize on this demand.
Speaker Change: Our digital experience was equally strong as we added hundreds of new industry-leading features, including further optimizing our Create Your Own Ring and jewelry experience.
Our digital experience with equally strong as we added hundreds of new industry, leading features including further optimizing our creature and bring in jewelry experiences.
Speaker Change: Executing our model of continual testing and optimization in a constantly changing e-commerce market.
Executing our model of continual testing and optimization and are constantly changing e-commerce marketplace.
Speaker Change: In the fourth quarter, we continue to focus on driving lifetime value and repeat purchasing across all channels with our efforts in CRM delivering significant growth.
In the fourth quarter, we continue to focus on driving lifetime value and repeat purchasing across all channels with our efforts in CRM delivering significant growth. Our focus is to constantly improve the customer experience and as we do we create further competitive advantage for our brands and we support our customers.
Speaker Change: Our focus is to constantly improve the customer experience, and as we do, we create further competitive advantage for our brand, and we support our customers in making the best informed buying decisions.
And making the best informed buying decisions much like when we introduced skin tone visualization to enhance customers' digital try on experience this quarter using proprietary technology, we introduced industry, leading tools that provide higher resolution and photo realistic visualization for our onsite imagery bring.
Speaker Change: Much like when we introduced skin tone visualization to enhance customers' digital try-on experience, this quarter, using proprietary technology, we introduced industry-leading tools that provide higher resolution and photorealistic visualization for our on-site imagery, bringing the products to life for our customers.
The products to life for our customers.
Speaker Change: This is another great example of how we have continued to extend our digital leadership and drive substantial growth in our engagement and digital conversion rates in 2020.
This is another great example of how we have continued to extend our digital leadership and drive substantial growth in our engagement in digital conversion rates in 2021 .
Speaker Change: Finally, our agile make-to-order manufacturing model allowed us to adapt and capture additional demand during the course.
Finally, our agile make to order manufacturing model allowed us to adapt and capture additional demand during the quarter.
Speaker Change: Third, product. Our consumers look to Brilliant Earth for beautifully designed, trend-leading, distinctive, personalized products. And I'm incredibly proud of the products our team delivered this year.
Third product our consumers look to brilliant earth for beautifully designed trend, leading distinctive personalized products and I'm incredibly proud of the products our team delivered this year.
Speaker Change: we saw across-the-board sales stream, with significant growth across our product lines, from bridal to fine jewelry.
We saw across the board sales stream with significant growth across our product lines from bridal to fine jewelry.
Speaker Change: By building on our trend-forward, premium, and inclusive design ethos, we are introducing new categories and releasing new collections that further strengthen our performance and showcase our design leadership.
By building on our trend forward premium and inclusive design ethos, we are introducing new categories and releasing new collections that further strengthen our performance and showcase our design leadership, we're optimizing our proven model and using data and consumer insights to drive our assortment and <unk>.
Speaker Change: We're optimizing our proven model and using data and consumer insights to drive our assortment and customers are responding.
<unk> are responding the solstice collection and aspirational design collection of bridal and fine jewelry that includes price points up to $100000 expanded assortment of men's rings, including more unique styles and create your own styles. We have particular strength in sales of higher price point items.
Speaker Change: The Solstice Collection, an aspirational design collection of bridal and fine jewelry that includes price points up to $100,000.
Speaker Change: expanded assortment of men's rings, including more unique styles and create your own style.
Speaker Change: We have particular strength in sales of higher price point items that cater to a higher income customer.
The cater to a higher income customer spin.
Speaker Change: Specifically, orders for items over $10,000 outpace the growth of the overall business. This showcases the breadth and appeal of our.
Specifically orders for items over $10000 outpaced the growth of the overall business. This showcases the breadth and appeal of our brand.
Speaker Change: In fine jewelry, fashion rings and bermet are just a few great examples of us leading with key trends and demonstrating our early success in these relatively new areas.
In fine jewelry fashion rings, and Vermeil are just a few great examples of us leading with key trends and demonstrating our early success in these relatively new areas.
Speaker Change: As we have broadened our assortment, it has allowed us to expand upon our existing fine jewelry pricing architecture.
We have broadened our assortment it has allowed us to expand upon our existing fine jewelry pricing architecture and cater to a more self purchase trend driven customer.
Speaker Change: and to cater to a more self-purchase, trend-driven customer.
Speaker Change: As expected, expanding the assortment into trend-forward, giftable items and personalized, meaningful jewelry drove strong Q4 holiday sales. We continue to see strong performance in our fine jewelry collection, and our compelling assortment serves as the foundation for continued growth this year.
As expected expanding the assortment into trend forward giftable items and personalized meaningful jewelry drove strong Q4 holiday sales. We continue to see strong performance in our fine jewelry collection and our compelling assortment serves as the foundation for continued growth this year.
Finally living our mission during the year, we continued to live our mission and values by expanding our leadership in ESG. We are excited to have just released our inaugural ESG report, a brilliant future, which highlights our continued commitments to sustainability transparency.
Speaker Change: During the year, we continued to live our mission and values by expanding our leadership in ESG.
Speaker Change: We are excited to have just released our inaugural ESG report, A Brilliant Future, which highlights our continued commitments to sustainability, transparency, compassion, and inclusion.
<unk> compassion and inclusion.
Speaker Change: Among a few of the initiatives we completed were our FairMind Gold Collection, which reinforces our commitment to mission-driven products and our commitment to supporting the development efforts in artisanal gold mining. The collection showcases our leadership in transparency and sustainability, and consumers loved it, making this one of our most successful new releases.
Among a few of the initiatives, we completed war or fear minds, cold collection, which reinforces our commitment to mission driven products and our commitment to supporting the development efforts and artisanal gold mining the collection showcases our leadership in transparency and sustainability.
And consumers loved it making this one of our most successful new releases.
Speaker Change: We continue to demonstrate our commitment to sustainability and extend our industry leadership and transparency.
We continue to demonstrate our commitment to sustainability and extend our industry leadership and transparency.
Speaker Change: and providing visibility into our supply chain by offering beyond conflict-free diamonds and recycled precious metals.
And providing visibility into our supply chain by offering beyond conflict free diamonds and recycled precious metals.
Speaker Change: ESG is more than a series of initiatives. It is embedded in everything we do. It is a founding principle of our company and is important to our culture, our community, and our community.
Yes, she is more than a series of initiatives. It is embedded in everything we do it as a founding principle of our company and is important to our culture, our community and our customers.
Speaker Change: and is certainly one of the reasons we attract and retain enormously talented and committed people to our company.
And it's certainly one of the reasons, we attract and retain enormously talented and committed people to our company.
Speaker Change: With all of these accomplishments, we again delivered profitable, sustainable growth. We expanded our 2021 gross margin by 470 basis points year over year to 49.3%, and the fourth quarter saw a growth margin of 51.1%.
With all of these accomplishments, we again delivered profitable sustainable growth, we expanded our 2021 gross margin by 470 basis points year over year to 49, 3% in the fourth quarter saw gross margin of 51, 1%.
Speaker Change: We saw expansion in margin across our product lines reflecting the strength of our brand and product assortment.
We saw expansion in margin across our product lines, reflecting the strength of our brand and product assortment the effectiveness of our pricing optimization tools vendor negotiation and distribution and favorable mix shifts including toward fine jewelry.
Speaker Change: the effectiveness of our pricing optimization tools, vendor negotiation, and distribution, and favorable mix shifts, including toward fine jewelry.
Speaker Change: Jeff will talk more about this, so I'll simply say that we're pleased that our thoughtful investments to drive both top and bottom line growth delivered record EBITDA.
Jeff will talk more about this so I'll simply say that we're pleased that our thoughtful investments to drive both top and bottom line growth delivered record EBITDA.
Fiscal year 2022 priorities as pleased as we are with our performance in 2021, we're intently focused on continuing our positive momentum into fiscal 2022, we're off to a strong start and we are confident that as we continue to execute we are poised to deliver another year of <unk>.
Speaker Change: As pleased as we are with our performance in 2021, we're intently focused on continuing our positive momentum into fiscal 2022.
Speaker Change: We're off to a strong start, and we are confident that as we continue to execute, we are poised to deliver another year of significant growth.
Difficult growth looking ahead, 2022 will bring U S. Showroom expansion, we will continue our showroom rollout into additional metro areas to broaden our omnichannel reach with our next showrooms scheduled soon in Bethesda, our second showroom in the D. C Metro area, we have a lie.
Speaker Change: Looking ahead, 2022 will bring U.S. showroom expansion. We will continue our showroom rollout into additional metro areas to broaden our omni-channel reach, with our next showroom scheduled soon in Bethesda, our second showroom in the D.C. metro area.
Speaker Change: We have a line of sight to approximately double our number of showroom leases this year. As we do, we will continue to balance our openings in existing and new markets with a mix of ground floor and upper floor locations with a sharp focus on delivering ROI across every format.
A site to approximately double our number of showroom leases. This year as we do we will continue to balance our openings in existing and new markets with a mix of ground floor and upper floor locations with a sharp focus on delivering ROI across every format.
Speaker Change: As we expand, our aim is to make it even easier and more enjoyable for customers, both couples and individuals, to shop with us in a seamless, frictionless, omnichannel experience.
As we expand our aim is to make it even easier and more enjoyable for customers, both couples and individuals' to shop with us in a seamless frictionless omnichannel experience.
Speaker Change: enhancing and driving awareness and connection to the Brilliant Earth brand.
Enhancing and driving awareness and connection to the brilliant Earth brand.
Speaker Change: We believe there is significant opportunity to continue to elevate the brand by reaching broader audiences through multi-channel marketing approaches in 2022. We will continue to build enhanced digital experience.
We believe there is significant opportunity to continue to elevate the brand by reaching broader audiences through multichannel marketing approaches in 'twenty 'twenty. Two we will continue to build enhanced digital experiences to invest in product visualization and imagery and to drive meaningful partnerships and influencer relationships coupling.
Speaker Change: to invest in product visualization and imagery, and to drive meaningful partnerships and influencer relationships.
Speaker Change: Coupling all of this with our continued leadership across organic social platforms, we will continue to drive engagement and loyalty to the Brilliant Earth brand.
All of this with our continued leadership across organic social platforms, we will continue to drive engagement and loyalty to the brilliant Earth brand.
Speaker Change: We will continue to introduce new collections, including with partners, to showcase our design leadership. Our recent introductions of the Avant Premier Decoré Collection, an exclusive design collaboration, and the Solstice Collection are each performing well and reinforce that by leading with design, we are increasingly becoming an aspirational brand offering distinctively designed styles for younger consumers.
We will continue to introduce new collections, including with partners to showcase our design leadership, our recent introductions of the avant premier to core collection and exclusive design collaboration and the solstice collection are each performing well and reinforced that by leading with design we are increasingly be.
Coming an aspirational brand offering distinctively design styles for younger consumers.
Speaker Change: We will continue to utilize our test and learn process to adapt and refine our assortments, introduce new designs quickly, and to provide a curated offering of highly sought after products.
We will continue to utilize our test and learn process to adapt and refine our assortments introduce new designs quickly and to provide a curated offering of highly sought after products.
Speaker Change: and we will capitalize on the opportunity and find jewelry with a trend forward and relevant product assortment as we leverage existing customer relationships and create new ones.
And we will capitalize on the opportunity in fine jewelry with a trend forward and relevant product assortment as we leverage existing customer relationships and create new ones all while continuing to build our brand as the premier jewelry destination.
Speaker Change: all while continuing to build our brand as the premier jewelry destination.
Speaker Change: Finally, we will continue to both leverage and optimize our innovative business model to fuel our expanding scale, competitive advantage, and capital efficiency.
Finally, we will continue to both leverage and optimize our innovative business model to fuel our expanding scale competitive advantage and capital efficiency, you will see us continue to invest in data and technology as we always have to enhance the efficiency of our operations deepen integrations with our suppliers and enable.
Speaker Change: You will see us continue to invest in data and technology, as we always have, to enhance the efficiency of our operations, deepen integrations with our suppliers, and enable additional analytical insights. These investments will be made using our test and learn approach and with a disciplined ROI focus.
Additional analytical insights these investments will be made using our test and learn approach and with a disciplined ROI focus.
Speaker Change: Before I conclude my remarks, I would also like to comment on the recent events in Ukraine. Like so many, we are distressed and concerned for the people of Ukraine and are supporting relief efforts through the Brilliant Earth Foundation.
Before I conclude my remarks, I would also like to comment on the recent events in Ukraine.
So many we are distressed and concerned for the people of Ukraine, and our supporting relief efforts through the brilliant Earth Foundation.
Speaker Change: Earlier this quarter, ahead of our peers, we removed all Russian origin stones from our website.
Earlier this quarter ahead of our peers, we removed all Russian origin stones from our web site.
Speaker Change: Given our extensive diverse supply chain, as of today, we have not had any material impact on our financial performance as a result of this change, and we do not expect it to have a material impact on our performance for the full year.
Our extensive diverse supply chain as of today, we have not had any material impact on our financial performance as a result of this change and we do not expect it to have a material impact on our performance for the full year.
Speaker Change: Our hearts go out to all of those who have been so deeply affected in Ukraine, and we are hoping for a swift resolution to the crisis.
Our Hearts go out to all of those who have been so deeply affected in Ukraine, and we are hoping for a swift resolution to the conflict.
Speaker Change: I conclude my remarks by reiterating how extremely pleased we are with our fourth quarter and fiscal year performance.
I conclude my remarks by reiterating how extremely pleased we are with our fourth quarter and fiscal year performance and how confident we are that the best is yet to come for brilliant Earth.
Speaker Change: and how confident we are that the best is yet to come for Brilliant Earth.
Speaker Change: Going forward, our success will continue to be built on our ability to maximize the many advantages we believe we possess.
Going forward our success will continue to be built on our ability to maximize the many advantages. We believe we possess we're competing in a highly fragmented and growing global category and the brilliant Earth brand is growing in awareness and residents as the leading jeweler for todays consumer.
Speaker Change: We're competing in a highly fragmented and growing global category. And the Brilliant Earth brand is growing in awareness and resonance as the leading jeweler for today's consumer.
Speaker Change: We are an agile business and are able to swiftly adapt to changing trends having spent more than a decade developing and perfecting our data-driven test-and-learn approach to premium jewelry.
We are an agile business and are able to swiftly adapt to changing trends, having spent more than a decade, developing and perfecting our data driven test and learn approach to premium jewelry.
Speaker Change: We operate an asset-light model that is not burdened by holding excess inventory and instead allows data to inform our sourcing, buying, and pricing decisions to optimize margins.
We operate an asset light model that is not burdened by holding excess inventory and instead allows data to inform our sourcing buying and pricing decisions to optimize margins.
Speaker Change: an omni-channel model that provides a seamless shopping experience for consumers.
And Omnichannel model that provides a seamless shopping experience for consumers.
Speaker Change: We believe one of these attributes alone is highly differentiated, but their combination gives us a powerful operating platform from which to continue to execute our vision.
We believe one of these attributes alone is highly differentiate it but their combination gives us a powerful operating platform from which to continue to execute our vision I want to thank my team at brilliant Earth for their contributions to our outstanding year I am very proud of your commitment and dedication to our mission.
Speaker Change: I want to thank my team at Brilliant Earth for their contributions to our outstanding year. I am very proud of your commitment and dedication to our mission.
Speaker Change: And now, I would like to turn over the call to Jeff Kuo, our Chief Financial Officer.
And now I would like to turn over the call to Jeff <unk>, Our Chief Financial Officer.
Thanks, Beth and good afternoon, everyone. We're pleased to report our record fourth quarter and full year results as a public company.
Jeff Kuo: Thanks, Beth, and good afternoon, everyone. We're pleased to report our record fourth quarter and full year results as a public company.
Speaker Change: As Beth mentioned, 2021 was an outstanding year for Brilliant Earth.
As Beth mentioned 2021 was an outstanding year for brilliant Earth among.
Speaker Change: Among our many accomplishments for the year, our financial performance contained numerous milestones, including our first $100 million revenue quarter, record gross profit margin, and record adjusted EBITDA.
Among our many accomplishments for the year, our financial performance contained numerous milestones, including our first 100 million dollar revenue quarter record gross profit margin and record adjusted EBITDA.
Speaker Change: I would like to take you through highlights of our Q4 and full year results.
I would like to take you through highlights of our Q4 and full year results I will discuss certain adjusted non-GAAP measures of profitability in my remarks for these adjusted measures you can find reconciliation tables to the most comparable GAAP figures in our press release. This can be found at the IR portion of our website at investors.
Speaker Change: I will discuss certain adjusted non-GAAP measures of profitability in my remarks. For these adjusted measures, you can find reconciliation tables to the most comparable GAAP figures in our press release. This can be found at the IR portion of our website at investors.berlianirv.com.
<unk> got brilliant Earth Dot com.
Speaker Change: We had fourth quarter revenue growth of 38% to $121.9 million, which demonstrates the power of our brand awareness.
We had fourth quarter revenue growth of 38% to $121.9 billion, which demonstrates the power of our brand awareness growth across our product lines and our agile highly efficient business model.
Speaker Change: growth across our product lines, and our agile, highly efficient business model.
Speaker Change: We saw growth in average order value across our product lines on a year-over-year basis.
We saw growth in average order value across our product lines on a year over year basis. Our continued outperformance in fine jewelry, which has a lower price point than our overall business brings our blended Q4 <unk>.
Speaker Change: Our continued outperformance in fine jewelry, which has a lower price point than our overall business, brings our blended Q4 AOV for the entire company slightly downward, but this is overall favorable for the business, as I will describe later in my presentation.
For the entire company slightly downward, but this is overall favorable for the business as I will describe later in my remarks.
Speaker Change: For the year, we delivered full year revenue of $380.2 million, which was a 51% increase over the prior year and an 89% increase compared to 2019.
For the year, we delivered full year revenue of $382 million, which was a 51% increase over the prior year and an 89% increase compared to 2019.
Speaker Change: I'd like to highlight some business metrics where we saw very strong performance that helped to drive our top line growth and provide us with momentum into the future.
I'd like to highlight some business metrics, where we saw very strong performance that help to drive our topline growth and provide us with momentum into the future.
First we saw continued success across our Omnichannel platforms. We continue to see encouraging early results from 2021, new showrooms, where we have seen uplift in initial metro bookings, which is even stronger than our historical showroom opening experience.
Speaker Change: First, we saw continued success across our omni-channel platform.
Speaker Change: We continue to see encouraging early results from 2021 new showrooms, where we have seen uplifts in initial Metro bookings, which is even stronger than our historical showroom opening experience.
Speaker Change: This continues to validate our compelling showroom economics as we increase our showroom coverage across the country. Fine jewelry also continues.
This continues to validate our compelling show economics, as we increase our showroom coverage across the country.
Fine jewelry also continued to be a strong performer, we saw a strong fine jewelry growth far outpacing the business as a whole Bonnie.
Speaker Change: We saw strong fine jewelry growth, far outpacing the business as a whole.
Speaker Change: Fine Jewelry is an important strategic initiative for our business as it deepens our customer relationships to include additional purchase occasions including self-purchase.
Fine jewelry is an important strategic initiative for our business as it deepens our customer relationships to include additional purchase occasions, including self purchase.
Speaker Change: The ongoing success of our showroom and fine jewelry strategy is showing encouraging results in driving financial performance, customer loyalty, and lifetime value.
The ongoing success of our showroom and fine jewelry strategy is showing encouraging results and driving financial performance customer loyalty and lifetime value.
Speaker Change: Over the past two years, we have seen increasing customer cohort repeat purchase behavior, which we believe provides validation of these initiatives' success.
Over the past two years, we have seen increasing customer cohort repeat purchase behavior, which we believe provides validation of these initiatives success. While both of these initiatives are still in their earlier stages. We believe that early indications are very promising.
Speaker Change: While both of these initiatives are still in their earlier stages, we believe that early indications are very promising.
Moving on to our gross margin performance Q4, and the year again demonstrated our ability to optimize our business model to expand gross margins.
Speaker Change: Moving on to our gross margin performance, Q4 and the year again demonstrated our abilities to optimize our business model to expand gross margin.
Speaker Change: Q4 gross margin expanded to 51.1%, which is up 407 basis points versus the prior year. And full year gross margin grew to 49.3%, which is a 470 basis point improvement over the prior year.
Q4, gross margin expanded to 51, 1%, which is up 407 basis points versus the prior year and full year gross margin grew to 49, 3%, which is a 470 basis point improvement over the prior year.
Speaker Change: Growing demand for the Brilliant Earth brand, our premium and differentiated product offer.
Growing demand for the brilliant Earth brand.
Premium and differentiated product offerings pricing engine optimization and procurement efficiencies once again drove strong gross margin expansion across our product lines.
Speaker Change: pricing engine optimization, and procurement efficiencies once again drove strong gross margin expansion across our product.
Speaker Change: These results also illustrate how our asset light data-driven business model is a huge competitive and financial advantage, as it enables us to nimbly adapt our supply chain and product pricing to changing market conditions to optimize both margin and revenue.
These results also illustrates how our asset light data driven business model is a huge competitive and financial advantage as it enables us to nimbly adapt our supply chain and product pricing to changing market conditions to optimize both margin and revenue.
Speaker Change: As a result, during Q4, we were again able to capture better than expected gross margin improvements.
As a result during Q4, we were again able to capture better than expected gross margin improve.
Our SG&A for both the quarter and the year reflected our ongoing investments in building the brand and scaling the business.
Speaker Change: Our SG&A for both the quarter and the year reflected our ongoing investments in building the brand and scaling the business.
Speaker Change: Our Q4 sGNA dynamics were similar to what we saw in Q3.
Our Q4 SG&A dynamics were similar to what we saw in Q3.
Speaker Change: In total, SG&A increased to 40.5% of sales in Q4 2021 compared to 30.4% in Q4 2020.
In total SG&A increased to 45% of sales in Q4 2021 compared to 34% in Q4 2020.
Speaker Change: Approximately 200 basis points of this increase was made up of add-backs to adjusted EBITDA from increased employment expenses and other G&A.
Approximately 200 basis points of this increase was made up of add backs to adjusted EBITDA from increased employment expenses and other G&A. These.
Speaker Change: These include equity-based compensation and new showroom pre-opening expenses, which are added back in our presentation of adjusted EBIT.
These include equity based compensation and new showroom Preopening expenses, which are added back in our presentation of adjusted EBITDA.
Speaker Change: The remainder of the increase in SG&A was again largely driven by expenses to support the growth of our business.
The remainder of the increase in SG&A was again, largely driven by expenses to support the growth of our business invest in marketing to continue growing our strong brand awareness and support strategic growth initiatives and higher employee costs to support our operations as a public company, our strategic initiatives and new showrooms.
Speaker Change: invest in marketing to continue growing our strong brand awareness and support strategic growth initiatives, and higher employee costs to support our operations as a public company, our strategic initiatives, and new showrooms.
Also Q4 2020 represented a lower comparative for employee costs as Q4, 2020 reflected a lower staffing baseline coming after the initial months of the Covid pandemic.
Speaker Change: Also, Q4 2020 represented a lower comparative for employee costs as Q4 2020 reflected a lower staffing baseline coming after the initial months of the COVID pandemic.
Speaker Change: And we saw increased other GNA costs to support our ongoing operations as a public company, which as you know, we will not anniversary until late Q3 and Q4 of 2022.
And we saw increased other G&A costs to support our ongoing operations as a public company, which as you know we will not anniversary until late Q3 and Q4 of 2022.
Speaker Change: Our strong revenue and gross margin performance and strategic cost management resulted in us delivering record EBITDA in the fourth quarter.
Our strong revenue and gross margin performance and strategic cost management resulted in us delivering record EBITDA in the fourth quarter.
Speaker Change: Q4 adjusted EBITDA was $15.9 million or 13.1% of net sales.
Q4, adjusted EBITDA was $15 $9 million or 13, 1% of net sales and for the 2021 year adjusted EBITDA rose, 83.4% to over $50 million and adjusted EBITDA with an adjusted EBITDA margin of 13.
Speaker Change: And for the 2021 year, Adjusted EBITDA rose 83.4% to over $50 million in Adjusted EBITDA.
Speaker Change: with an adjusted EBITDA margin of 13.3%.
<unk>, 3%.
Speaker Change: Our profitability, positive cash flow, and capital efficient operating model continue to differentiate us among direct-to-consumer companies.
Our profitability positive cash flow and capital efficient operating model continue to differentiate us among direct to consumer companies.
Speaker Change: We ended 2021 with $173 million in cash versus $66 million at the end of 2020.
We ended 2021 with $173 million in cash versus $66 million at the end of 2020.
Speaker Change: Sources of cash included both proceeds from our IPO, as well as positive cash flow from operations.
Sources of cash included both proceeds from our IPO as well as positive cash flow from operations.
Speaker Change: We continue to operate the business in an asset-like fashion with high inventory turns and negative working capital.
We continue to operate the business in an asset light fashion with high inventory turns and negative working capital.
Speaker Change: And finally, we prudently managed our capital expenditures with CapEx for 2021 being approximately 1.5% of net sales.
Finally, we prudently managed our capital expenditures with Capex for 2021 being approximately 1.5% of net sales.
Speaker Change: All of these factors contribute to our strong cash flow for the year.
All of these factors contributed to our strong cash flow for the year.
Speaker Change: As Beth said, as thrilled as we are about our fourth quarter and full year results, we're looking ahead to fiscal 2022 and beyond, focused on continued execution and growth of our brand and our business.
As Beth said as thrilled as we are about our fourth quarter and full year results were looking ahead to fiscal 2022 and beyond focused on continued execution and growth of our brand and our business.
Speaker Change: Based on our performance in our plans, we've established long-term growth goals toward which we aim.
Based on our performance and our plans we have established long term growth goals toward which we we.
Speaker Change: We set these goals over a multi-year period and used them to guide our planning, and I would like to walk you through these long-term targets. These targets are consistent with or better than the targets we established at our IPO.
We set these goals over a multiyear period and use them to guide our planning and I would like to walk you through these long term targets. These targets are consistent with or better than the targets, we established at our IPO.
Speaker Change: we see revenue growth in the high 20s to low 30s percent range.
We see revenue growth in the high Twenty's to low 30% range with growth across our product lines and our <unk>.
Speaker Change: with growth across our product lines and our omni-channel.
Romney channel model.
Our long term gross margin target is in the mid 50% range driven by our premium products and brand our price optimization engine procurement efficiencies and growth of higher margin fine jewelry.
Speaker Change: Our long-term gross margin target is in the mid-50s percent range, driven by our premium products and brand, our price optimization engine, procurement efficiencies, and growth of higher-margin fine jewels.
Speaker Change: Our long-term marketing spend target is in the mid to high teens as a percentage of revenue as we continue to grow our brand awareness and continue the rollout of unique, joyful, digital, and showroom experiences to drive conversion and repeat behavior.
Our long term marketing spend target is in the mid to high teens as a percentage of revenue as we continue to grow our brand awareness and continue the rollout of unique joyful digital and show them experiences to drive conversion and repeat behavior.
Speaker Change: And we are targeting a 15 to 20% plus long-term adjusted EBITDA margin driven by several factors.
And we are targeting a 15% to 20% plus long term adjusted EBITDA margin driven by several factors.
Speaker Change: gross margin expansion, improved effectiveness of our marketing spend, and leverage in our G&A expense.
Margin expansion in <unk>.
The effectiveness of our marketing spend and leverage in our G&A expenses.
Speaker Change: We may have fluctuations along our path to these targets in a given quarter, as there are always puts and takes that we will make.
We may have fluctuations along our path to these targets in a given quarter as there are always puts and takes that we will manage however, we have a firm belief that consistent management of the business to achieve these long term targets is the correct approach to achieve sustainable profitable growth.
Speaker Change: However, we have a firm belief that consistent management of the business to achieve these long-term targets is the correct approach to achieve sustainable, profitable growth.
Speaker Change: For the first quarter of 2022, we're pleased that the strong finish of last year did not subside as we've enjoyed positive business momentum quarter to date.
For the first quarter of 2022, we're pleased that the strong finish of last year did not subside as we've enjoyed positive business momentum quarter to date.
Speaker Change: As a result, we anticipate that Q1 2022 net sales will be between $96 to $98 million, which represents 36 to 39% growth versus Q1 2021.
As a result, we anticipate that Q1 'twenty two net sales will be between $96 million to $90 million, which represents 36% to 39% growth versus Q1 2021.
Speaker Change: We anticipate our adjusted EBITDA in the first quarter will be in the range of $7 to $7.5 million, which represents an adjusted EBITDA margin of approximately 7.3 to 7.7%.
We anticipate our adjusted EBITDA in the first quarter will be in the range of seven to seven 5 million, which represents an adjusted EBITDA margin of approximately 7.3 to seven 7%.
Speaker Change: This reflects that the first quarter is typically the smallest revenue quarter of the year and the investments we are making in building the brand and scaling our business.
This reflects that the first quarter is typically the smallest revenue quarter of the year.
The investments, we're making in building the brand and scaling our business.
Speaker Change: For the full year 2022, we project net sales in the range of $485 to $500 million, which represents 28 to 32% growth versus fiscal year 2021.
For the full year 2022, we project net sales in the range of $485 million to $500 million.
Which represents 28% to 32% growth versus fiscal year 2021.
Speaker Change: We are projecting adjusted EBITDA in the range of $51 to $55 million, which represents an adjusted EBITDA margin of approximately 10.5 to 11%.
We are projecting adjusted EBITDA in the range of $51 million to $55 million, which represents an adjusted EBITDA margin of approximately 10, 5% to 11%.
Speaker Change: In closing, on behalf of Beth, myself, and our entire team, we're very pleased to deliver these results and we're looking forward to realizing another great year ahead. With that, we'll be happy to take your questions.
In closing on behalf of Beth myself and our entire team. We're very pleased to deliver these results and we're looking forward to realizing another great year ahead with that we'll be happy to take your questions.
Speaker Change: Thank you. As a reminder, to ask a question, you will need to press star 1 on your telephone to withdraw your question.
Thank you as a reminder to ask a question you will need to press star one on your telephone to withdraw your question. Please press the balance sheet. Please limit yourself to one question and one follow up our first question comes from Matthew Boss with Jpmorgan. You May proceed with your question.
Speaker Change: Please limit yourself to one question and one follow-up. Our first question comes from Matthew Boss with J.P. Morgan. You may proceed with your question.
Matthew Boss: Great, thanks, and congrats on a really nice quarter and new long-term.
Great. Thanks, and congrats on a really nice quarter and new long term target.
Speaker Change: So maybe to start, Beth, can you speak to drivers of the business acceleration that you saw in the fourth quarter? I think trends accelerated both on a one- and two-year basis.
So thank you.
So maybe to start can you speak to drivers of the business acceleration that you saw in the fourth quarter I think trends accelerated both on a one and two year basis.
Beth Gerstein: Maybe just elaborate on some of the trends that you've seen post-holiday. And then on that long-term revenue target, which you raised on the call, I guess how best to think about drivers of the underlying business that's giving you confidence to raise the long-term revenue?
Maybe just elaborate on some of the trends that <unk> seen post holiday and then on that long term revenue target, which you raised on the call I guess, how best to think about drivers of the underlying business.
Even you confidence to raise the long term revenue targets today.
Great and thanks nice to talk to you Matt So in terms of the drivers of the acceleration in Q4 I think it's really that we are executing on the plan that we've articulated we are continuing to drive awareness for our brand really elevating the brand. So that's the it is the premier.
Speaker Change: Great. And thanks. Nice to talk to you, Matt. So in terms of the drivers of the acceleration in Q4, I think it's really that we are executing on the plan that we've articulated.
Speaker Change: We are continuing to drive awareness for our brand.
Speaker Change: really elevating the brand. So that's the, it is the premier jewelry destination for the younger consumer.
Hillary destination for the younger consumer we really invested in increasing our product assortment and really having a trend forward differentiated design is incredibly important to our customer base I think the omnichannel model that we've articulated in the past has really been executing.
Speaker Change: We really invested in increasing our product assortment and really having a trend forward differentiated design is incredibly important to our customer base.
Speaker Change: I think the omni-channel model that we've articulated in the past has really been executing and working really well.
Working really well there.
Speaker Change: the digital experiences that we have invested in from our visualization to really making a seamless omni-channel model has been, I think, very powerful for our customers as well. And the showroom model, I think, is working incredibly well also. All of the showrooms, as I mentioned earlier, in 2021 are exceeding our expectations.
The digital experiences that we have invested in from our visualization to really making a seamless omnichannel model has been I think very powerful for our customers as well and the showroom model I think is working incredibly well also all of the showrooms as I mentioned earlier.
In 2021 are exceeding our expectations. So really I think we're performing incredibly well and continue to just operate as we've been planning all along.
Speaker Change: So really, I think we're performing incredibly well and continue to just operate as we've been planning all along.
Speaker Change: As it relates to our trends post-holiday, I think you can tell by our Q1 guidance that we continue to see the business perform very well and we're seeing strong customer demand and have a lot of confidence in the plan that we've articulated.
As it relates to our trends post holiday I think you can tell by our Q1 guidance that we continue to see the business perform very well and we're seeing strong customer demand and have a lot of confidence and the plan that we've articulated.
Yeah.
I can speak to the okay gotcha.
Speaker Change: I was going to say I can speak to the longer term guidance question that you asked.
I was going to say I can speak to the longer term guidance question that you asked.
Speaker Change: And I think that really is a continuation of the execution along those different areas that Beth mentioned, including the strong customer resonance for our brand, the joyful omni-channel experience, and just continuing that execution, rolling out of additional showrooms with their creative economic effects and just continuing to deliver on the strategy that we've delivered on so far.
And I think that really is a continuation of the execution along those different areas with Beth mentioned, including the strong customer residents for brand. The joyful Omnichannel experience. So just continuing that execution rolling out of additional showrooms with their accretive economic effects and just continuing to do.
On the strategy that we've delivered on so far.
Speaker Change: Great. And then maybe just to follow up probably for for you, Jeff, on gross margin. So I guess maybe could you just help break down the drivers of upside relative to plan in the fourth quarter that you saw? Just any puts and takes to consider for gross margin.
Great and then maybe just a follow up probably for you Jeff on the gross margin.
I guess, maybe could you just help break down the drivers of upside relative to plan in the fourth quarter that you saw.
Just any puts and takes to consider for gross margin.
Jeff Kuo: 2022, and then similarly the raise of the long-term gross margin target, just anything to help bridge the old target relative to the new.
22, and then similarly, the raise of the long term gross margin target just anything to help bridge the old target relative to the new.
For our gross margin.
Jeff Kuo: say that the drivers of the performance in Q4, as well as the drivers of our future performance in 2022, really can be thought of as a few different things. One is just the strong resonance of the premium Brilliant Earth brand, which allows us to have those premium gross margins.
The drivers of the performance in Q4 has well as the drivers of our future performance in 2022 really can be thought of as a few different things. One is just the strong residents of the premium brilliant Earth brand, which allows us to have those premium gross margins and then.
Jeff Kuo: And then the continued well-functioning execution of our pricing engine and optimizing that dynamically to drive revenue and strong gross margin.
The continued well functioning execution, along our of our pricing engine and optimizing that dynamically to drive revenue and strong gross margin.
Jeff Kuo: And then procurement efficiencies have also been an important part of our Q4 and historical performance.
And then procurement efficiencies have also been an important part of our of our Q4 and historical performance and then as we continue growing in fine jewelry.
Jeff Kuo: Then as we continue growing in fine jewelry, fine jewelry is an area that is higher gross margin than for our business overall. So if that business continues to grow and outpace the business, we expect that that will also be an increasing contributor to gross margin accretion as we go in the future.
Fine jewelry is an area that has a higher gross margin than for our business. Overall, so as that business continues to grow and outpace the business. We expect that that will also be an increasing contributor to gross margin accretion as we go in the future.
That's great color, Thanks, again and congrats.
Thank you.
Speaker Change: Thank you. Our next question comes from Michael Benetti with Credit Suisse. You may proceed with your question.
Thank you. Our next question comes from Michael Binetti with Credit Suisse. You May proceed with your question.
Michael Benetti: Hey guys, I'll add my congrats on a great quarter. Really happy to see it. Nice execution through the holiday.
Hey, guys I'll add my congrats on a great quarter really happy to see it nice execution through the holiday.
Speaker Change: I guess, Jeff, can I ask you to go through maybe a little more granularity on your thoughts on the margin next year? As we sit here and look at the guidance, I'm having trouble envisioning a scenario at the low end of the range you gave us where you grow the revenues in the 30 percent range with.
I guess just can I can I ask you to go through maybe a little more granularity on your thoughts on the margin next year as we sit here and look at the guidance.
I'm, having trouble envisioning a scenario at the low end of the range you gave us where you grow the revenues and the 30% range with.
Speaker Change: Um, even even down almost flat for the year, I guess.
EBIT EBITDA almost flat for the year I guess.
Speaker Change: In dollar terms, I guess that separately, I know some of the cost drivers this year, you're going to add a lot of stores or showrooms. That was the plan.
In dollar terms.
Separately I know some of the cost drivers this year youre going to add a lot of stores or showrooms that was the plan.
Speaker Change: for the year, but it doesn't look like the overall growth rate in showrooms is different than prior years, but I guess the incremental margins you're baking in this year are a lot lower. I'm just wondering if there's some change in the unit economics of opening a store or something like that that would explain the change in how you're looking at profitability in 22 as you grow.
For the year, but it doesn't look like the overall growth rate in showrooms is different than prior years.
The incremental margins you're baking in this year are a lot lower I'm. Just wondering if there is some change in the unit economics of opening a store or something like that that would explain.
The change in how Youre looking at profitability in 'twenty two is your growth.
Speaker Change: Sure. Thanks, Michael. I'll start first with your question on gross margin for the year.
Sure. Thanks, Michael I'll start first with your question on gross margin gross margin for the year.
Speaker Change: We are incorporating into our model some modest improvement in gross margin for 2022. We do recognize that we're in an inflationary environment, and we have incorporated that into our model and planning. We do have that dynamic and agile business model pricing engine that we continue to adapt.
We are incorporating into our model.
Some modest improvement in gross margin for 2022, we do recognize that we're in an inflationary environment and we have incorporated that into our modeling and planning we do have that dynamic and agile business model pricing engine that we continued to adapt to different market environments.
Speaker Change: two different market environments, including this one and others we've seen in the past. And so the net result of that is we do think that we will be able to drive a modest gross margin improvement for the year.
Including this one and others we've seen in the past and so the net result of that is we do think that we will be able to drive modest gross margin improvement for the year.
Speaker Change: In terms of the margin outlook for 2022, I would say that we are planning and managing the business.
In terms of the margin outlook for 2022.
I would say that we are planning and managing the business to another record year in terms of revenue dollars and EBITDA dollars and then we are also being thoughtful about investments that we're making.
Speaker Change: to another record year in terms of revenue dollars and EBITDA dollars. And then we are also being thoughtful about investments that we're making in the growth of the business, including growing the brand, making investments in strategic initiatives, as well as annualizing public company operating costs.
In the growth of the business, including growing the brand, making investments in strategic initiatives as well as Annualizing analyzing public company operating cost. So I don't think theres any fundamental change. It's just that's how we're managing the business and we're excited that it will be another hub.
Speaker Change: I don't think there's any fundamental change. You know, it's just that's how we're managing the business and we're excited that it will be another record year for revenue and EBITDA based on our plan.
Record year for <unk>.
Revenue and EBITDA based on our plan.
That's that's great and then I think as we talked about as we learned about the business a bit through the IPO process. You spoke to maybe 300 basis points of gross margin over time from a couple of discrete items that were the big callouts in pricing I think was about 100 procurement about 100 fine jewelry makes added 50, and there was a few more but.
Speaker Change: And then I think as we learned about the business a bit through the IPO process, you spoke to
Speaker Change: maybe 300 basis points of gross margin over time from a couple of discrete items that were the big call-outs. Pricing, I think, was about 100, procurement about 100.
Speaker Change: fine jewelry mix added 50 and there's a few more. But has the ceiling moved up on any of the gross margin outperformance here in your first two quarters has been a notable call out here. I just wonder if the ceiling's moved up on any of those discreet items to help us think about the trend.
As the ceiling moved up on the gross margin outperformance here in your first two quarters has been.
Notable call out here I, just wonder if the ceilings moved up on any of those discrete items to help us think about the.
The trend forward here.
Speaker Change: Yeah. We're not planning to provide a breakout of some of the specific drivers, but what I can say is that those drivers, the price optimization engine, procurement efficiencies, fine jewelry, and underpinned by our premium brand, they're all performing well, and we have been a source of our recent performance, and we also continue to believe in the room to run with those into the future.
Yeah.
We're not planning to provide a breakout of some of the specific drivers, but what I can say is that.
Those drivers the price optimal price optimization engine procurement efficiencies.
Jewelry and underpinned by our premium brand there.
They are all performing well and we have been a source of our recent performance and we also continue to believe in the room to run with those.
Into the future.
Thanks, a lot for all the help guys.
Thank you.
Speaker Change: Thank you. And as a reminder, to ask a question, you'll need to press star one on your telephone. Our next question comes from Oliver Chen with Cowen. You may proceed with your question.
Thank you and as a reminder to ask a question you will need to press star one on your telephone. Our next question comes from Oliver Chen with Cowen You May proceed with your question.
Alright, thanks, Congrats on a great quarter from the new showroom execution was impressive in better than you expected, but what are your thoughts on what's right in terms of the optimal number could you grow faster and what are some details on why it was better.
Oliver Chen: So the new showroom execution was impressive and better than you expected. What are your thoughts on what's right in terms of the optimal number? Could you grow faster? And what are some details on why it was better?
Oliver Chen: Also, as you articulated a lot of helpful information on ESG, what would you say separates you most apart from competition from an ESG perspective, and as you do conduct consumer research?
Also as you articulated a lot of helpful information on ESG, what would you say separates you most apart from competition from an ESG perspective, and as you do consumer research, which ESG factors might consumers prioritize and their own thinking thank you.
Oliver Chen: which ESG factors might consumers prioritize in their own thinking. Thank you.
<unk>.
Speaker Change: Thanks, Oliver. In terms of the new showrooms, as I said earlier, I was really pleased to see how well that they've been performing. And I think that in terms of why they're performing so well, it's part of it, it's just that brand resonance.
Thanks Oliver.
In terms of the the new showrooms and as I said earlier I was really pleased to see how well they've been performing and I think that in terms of why they're performing so well. It is part of it is just that brand of residents in terms of really being able to capture that younger consumer.
Speaker Change: in terms of really being able to capture that younger consumer.
Speaker Change: It's really an omni-channel strategy, and I think that the two, both digital and showroom, work really synergistically. And as we've mentioned before, every time we enter into a new market, we see this major lift.
It's really an omnichannel strategy and I think that the two both digital and showroom work really synergistically and as we've mentioned before every time, we enter into a new market. We see this major lift in the overall market. So it's a really powerful model I think that part of that is we're growing local awareness.
Speaker Change: in the overall market. So it's a really powerful model. I think that part of that is we're growing local awareness. Word of mouth and referral is such an important part of how we drive our brand awareness and how we bring customers into the Brilliant Earth brand. And that's been really powerful for us. So really excited that we're able to use our customer data to make sure we're making informed real estate decisions. And those showrooms are, I think, just really exceeding our expectations.
This word of mouth referral is such an important part of how we drive our brand awareness and how we bring customers into the brilliant Earth brand and that's been really powerful for us. So really excited that we're able to use our customer data to make sure we're making informed real estate decisions and those showrooms are I think just really exceed.
Hitting our expectations in terms of your ESG question. Obviously this is a really important aspect to the company.
Speaker Change: In terms of your ESC question, you know, obviously this is a really important aspect to the company.
Speaker Change: It's why we were founded. And I think consumers just can see the authenticity of that. They understand that we are really doing a lot of work on their behalf. Transparency, sustainability, responsibility, being compassionate, and inclusive. All of those factors, I think, are just
It's why we were founded and I think consumers just can see the authenticity of that they understand that we are really doing a lot of work on their behalf transparency sustainability.
Sponsor ability being compassionate and inclusive all of those factors I think are just very key, especially as we're talking about the gen Z and millennial audience. So hopefully you'll you'll get a chance to look at our sustainability report, we're incredibly proud of it a brilliant future and you can just see I think a lot of the <unk>.
Speaker Change: very key, especially as we're talking about the Gen Z and millennial audience. So hopefully you'll get a chance to look at our sustainability report. We're incredibly proud of it, a brilliant future. And you can just see, I think, a lot of the heavy lifting that we've been doing for many years, and the aggressive goals that we're setting, and we're just continuing to get better and better.
Heavy lifting that we've been doing for many years and the aggressive goals that we're setting and we're just continuing to get better and better.
Speaker Change: Thank you. And a follow-up. Fine Jewelry was impressive. As we think about Fine Jewelry going forward, what are some hurdles you're looking at? And that AOV dynamic may continue, I assume, if Fine Jewelry continues to be so successful. And you've also been a leader in blockchain, so would love any extra thoughts there as that becomes increasingly in the forefront, as well as NFTs. Thanks.
Thank you and a follow up fine jewelry was impressive.
As we think about fine jewelry going forward what are some hurdles you're looking at in the <unk> dynamic may continue I assume this fine jewelry continues to be so successful and you've also been a leader in blockchain, So would love any extra thoughts there.
That becomes increasingly at the forefront as well as enough to use thanks.
Speaker Change: Yeah, maybe I can start on blockchain, because this is an effort that we have really been leaders and innovators on. We introduced our blockchain-enabled diamonds several years ago, and we've been expanding the collection.
Yeah, maybe I can start on block chain. Because this is an effort that we have really been leaders and innovators on we introduced our blocked in enable diamonds several years ago, and we've been expanding the collection ever since and what it does is it really enables an unparalleled unparalleled level of transparency.
Speaker Change: ever since. And what it does is it really enables an unparalleled level of transparency.
Speaker Change: to the customer. So they're really able to understand the journey of their diamond. I think even more today that is incredibly important.
To the customer so they're really able to understand the journey of their diamond I think even more today that is incredibly important and I think that they really value the extra steps that we're taking in terms of our supply chain diligence.
Speaker Change: And I think that they really value the extra steps that we're taking in terms of our supply chain diligence.
As it relates to fine jewelry I think we were incredibly excited by the performance that we had I think that that's really driven by our product assortment a lot of our marketing efforts the digital experience really strong customer.
Speaker Change: I think we were incredibly excited by the performance that we had. I think that that's really driven by our product assortment, a lot of our marketing efforts, the digital experience.
Speaker Change: really strong customer loyalty that we continue to market to. And I think that the AOV dynamics are only positive. You know, we're really focused on how we can drive AOV across different collections. So the blended AOV, I think, is not something that we are concerned about.
Loyalty that we continue to market to and I think that the a O V dynamics are only positive you know, we're really focused on how we can drive a ob across different collections. So the blended O V. I think is is not something that we're concerned about.
Thank you best regards.
Thanks Oliver.
Speaker Change: Thank you. Our next question comes from Dana Telsy with Telsy Advisory Group. We may proceed with your question.
Thank you. Our next question comes from Dana Telsey with Associates Asbury Group. We proceed with your question.
Dana Telsy: Good afternoon, everyone. And Beth, you hit exactly what I wanted to talk about a little bit, is AOV. As you think about the AOV across collections, and obviously uptick in weddings this year, return to more gatherings and events, anything in terms of what your expectation is for AOV, either differing by store or by channel, or by the partnerships and what you're expecting there? Thank you.
Good afternoon, everyone and that's exactly what I wanted to talk about a little bit as a O V. As you think about the a O V across collections and obviously.
Optic and weddings to see a return to more gatherings and events anything in terms of what your expectation is for a L D either deferring by store or by channel or by the partnerships and what Youre expecting there. Thank you.
Beth Gerstein: Sure. Hi, Dana. Thanks for your question. In terms of this being a really exciting year for weddings, I think that's something that we are really energized by. We're expecting the most weddings in 2022 than we have in decades, about 2.5 million weddings, and that's something that we are preparing internally for. And I think that because we have a very agile model and we're able to capture additional demand, I think we're very well prepared for it.
Sure Hi, Dana Thanks for your question in terms of you know this being a really exciting year for weddings I think that's something that we are really energized by we're expecting the most weddings in 2022 than we have in decades about two and a half million weddings and that's something that we are preparing internally.
Sure and I think that because we have a very agile model and we're able to capture additional demand I think we're very well prepared for it in terms of let me see your your second question is around can you just remind me.
Speaker Change: In terms of, let me see, your second question.
Speaker Change: is around. Can you just remind me? By channels. Any different, the showrooms versus the online channel?
Channels any different the showrooms, where yes the online channel.
Speaker Change: Absolutely. So, I think one of the exciting parts of our showroom strategy is it actually does drive increased AOV. It also drives increased repeat rate and customer loyalty, and I think that that is a great driver. I think we're expecting AOV to continue to increase across our different collections, and that's also reflective of our premium brand, as well as the product offerings that we continue.
Absolutely. So I think one of the exciting parts of our showroom strategy is it actually does drive increased a O V. It also drives increased repeat rate and customer loyalty and I think that that is a great driver I think we're expecting <unk> to continue to increase across our different collections and that's also.
Reflective of our premium brand as well as the product offerings that we continue to introduce.
Speaker Change: And then I think one thing, oh, sorry, go ahead, Dana. Go on. I'm sorry, go on, Jeff.
Got it and then.
One thing.
Sorry go ahead, Dean God, I'm, sorry going down.
Jeff Kuo: I was going to say, and then also just one of the things that is strong about our omni-channel approach is that, you know, it does just continue to drive a strong, strong marketing, you know, strong marketing efficiency.
I was going to say and then also just one of the things that it's strong about our Omnichannel approach is that we does just continue to drive a strong strong marketing strong marketing efficiencies.
Jeff Kuo: We see this, you know, we saw that our marketing costs for the year.
We see this year, we saw that our marketing costs for the year about $74 million about 1919, 6% of net sales and in Q1, we've continued to really draw drive strong marketing efficiency and so I think that really synergistic omnichannel approach.
Jeff Kuo: about $74 million, about $19.
Jeff Kuo: 19.6% of net sales, and in Q1, we've continued to really drive strong marketing efficiency. And so I think that really synergistic omnichannel approach has really, really benefited.
Has really really benefited the business.
Speaker Change: Anything you should take away on CRM with the uptick in expected weddings, your ability to get the engagement, the wedding sales, engagement rings, and then get their anniversary, their birthday, all the other events, anything in how you're speaking about new customer additions.
If anything we should take away on CRM with the uptick in expected weddings your ability to get the engagement.
Wanting self engagement rings, and then they'll get their anniversary their birthday, there all the other events anything and how youre thinking about new customer additions.
Speaker Change: Yeah, I think we are focused on both new and existing customers, and we've seen success in expanding both of those categories. So, as it relates to CRM, we were really pleased with the outperformance in the last quarter, and that just reflects our continued efforts towards segmentation and personalization. And just the fact that we have this unified customer data set allows us to really, I think,
Yeah, I think we are focused on both new and existing customers and we've seen success in expanding both of those categories. So as it relates to CRM. We were really pleased with the outperformance in the last quarter and that just reflects our continued efforts towards segmentation and personalization.
Nation and just the fact that we have this unified customer data that allows us to really I think be much more granular and much more efficient in our marketing and that helps as were able to acquire those engagement ring customers, which are really the entry point into this category for us to continue to drive additional Roe.
Speaker Change: be much more granular and much more efficient in our marketing. And that helps as we're able to acquire those engagement ring customers, which are really the entry point into this category, for us to continue to drive additional repeat, whether it's wedding or anniversary. And as Jeff mentioned in his remarks, we're really excited by the repeat rate and how that has just continued to grow over time.
<unk>, whether it's wedding, our anniversary and as Jeff mentioned in his remarks were really excited by the repeat rate and how that has just continued to grow over time.
Speaker Change: Thank you. Congratulations. Thank you. Thank you.
Thank you congratulations.
Thank you. Thank you.
Speaker Change: Thank you. And as a reminder, to ask a question, you will need to press star one on your telephone. Our next question comes from Dylan Carden with William Blair. You may proceed with your question.
Thank you and as a reminder to ask a question you will need to press star one on your telephone. Our next question comes from Sheila <unk> with William Blair. You May proceed with your question.
Dylan Carden: Thanks a lot. Just on that last point, Beth, the fine jewelry category, would you consider that mostly at this point to be a repeat customer or sort of a follow-on purchase from a legacy engagement customer? And then, Jeff, for you...
Thanks, a lot just on that last point.
The fine jewelry category would you consider that mostly at this point to be a repeat customer or sort of a follow on purchase from our legacy engagement customer.
And then Jeff for you.
Dylan Carden: As some of these input prices get whipsawed around, you consistently call out the pricing algorithm.
Some of these input prices get whipsawed around you consistently called out the pricing algorithm.
Dylan Carden: as a benefit to gross margin, you know, are you relatively indifferent which way prices are going and that you're allowed to sort of maintain strong margins regardless of price of gold?
The benefit to gross margin are you relatively indifferent, which way prices are going.
And that you're allowed to sort of maintain strong margins regardless of.
Price of gold silver.
Thanks.
Speaker Change: Great, I can start on the first question. In terms of the fine jewelry category, what we're excited by is that we're seeing strong new customers and repeat customers. And we've really developed a strong assortment for both self-purchase as well as more giftable, special occasion purchasing. So I think that's something that we'll continue to execute in terms of driving repeat as well as driving new customers into our Brilliant Earth brand.
Great I can start on the first question in terms of the fine jewelry category, but we're excited by is that we're seeing strong new customers and repeat customers and we've really developed a strong assortments for both self purchase as well as more giftable special occasion purchasing.
So I think we're that's something that we'll continue to execute in terms of driving repeat as well as driving new customers into our brilliant Earth brands.
Jeff do you want to have my question with margin.
Speaker Change: Sure. The question about gross margin and the inflation impact, we do recognize we're in an inflationary environment and we have incorporated this into our modeling and our guidance, and we are projecting some modest gross margin improvement for 2022.
Sure I don't hear the question about gross margin and the inflation impact we do recognize we're in an inflationary environment and we have incorporated this into our modeling.
In our guidance and we are we are projecting some modest gross margin improvement for 2022.
Speaker Change: The reason that we feel confident about that is we do have this unique business model, which is asset light, very nimble. And we're also able to adapt dynamically to conditions using our pricing engine as well as optimizing our procurement.
The reason that we feel confident about that is we do have this unique business model, which is asset light very nimble and we're also able to adapt and adopt dynamically to conditions using our pricing engine as well as.
Optimizing our procurement of footprint and so we think that by pulling all of these levers we will be able to still manage to have modest gross margin improvement for the year I would say.
Speaker Change: And so we think that by pulling all of these levers, we will be able to still manage to a modest gross margin improvement for the year. I would say as a proof point of this, including in the recent past and longer term, we've been able to increase margin in the face of increasing cost pressure.
<unk> of this including in the recent past and longer term, we've been able to increase margin in the face of increasing cost pressure differing inflationary environments and so that really gives us confidence that the model works and we have a dialed in approach to manage through inflation.
Speaker Change: differing inflationary environments. And so that really gives us confidence that the model works and we have a dialed in approach to manage through.
Speaker Change: Excellent. And I would just add to that real quick on the customer side that keep in mind, as it relates to bridal, that customers typically will shop with a budget and then they'll make trade-offs across different metals and diamond characteristics. This is obviously a much more considered purchase. Typically, it is planned over a longer period of time.
Excellent.
I would just add to that real quick on the customer side that keep in mind as it relates to bridal that customers typically will shop with a budget and then they'll make trade offs across different metals and diamond characteristics is there's obviously a much more considered purchase typically it has is planned over a longer period of time.
Speaker Change: And I think that, relative to some traditional jewelers, that our prices and our products overall offer tremendous value, which I think
And I think that relative to some traditional jewelers that our prices and our products overall offer a tremendous value, which I think is really important to the customer.
Speaker Change: Sure, and on this sort of theme of flexibility, maneuverability, you know, Russia, Russian diamonds made up a good chunk of listed diamonds, particularly on
Sure and I'll, just sort of theme of flexibility maneuverability.
Russia, Russian diamonds made up a good chunk of.
Listed diamond's, particularly on.
<unk>.
Speaker Change: more curated side of the business. So that doesn't impact at all the removal of those diamonds. How will you backfill some of that supply moving through the year? I know there's still a lot of diamonds from other regions, but I'm just curious how you're thinking about that and reaffirming that there's going to be no real major impact because I know people are focused.
More curated side of the business.
How were you able you know.
So that doesn't impact at all the removal of those diamonds and I guess, how are you kind of backfill some of that supply moving through the year I know, there's still a lot of diamonds from other regions, but just kind of curious how you're thinking about that.
Reaffirming that there can be no real major inputs I know people are focused on thanks.
Speaker Change: Yep. So what I would say to that is, in terms of Russian diamonds, we have built a robust supply chain and we still have a very extensive diamond inventory to be able to meet a broad range of consumer preferences.
Yeah. So.
What I would say to that is in terms of Russian diamonds, we have built a robust supply chain and we still have a very extensive diamond inventory to be able to meet a broad range of consumer preferences. So we we're constantly growing and thinking of ways to deepen our supplier.
Speaker Change: So we're constantly growing and thinking of ways to deepen our supplier relationships, add new supplier relationships to the extent that they're able to meet our beyond conflict-free diamond standards. But as I mentioned, we haven't experienced any material impact.
Chips add new supplier relationships to the extent that they're able to meet our beyond conflict free Diamond standards, but as I mentioned, we haven't experienced any material impact and we are really proud of the decision that we made to remove Russian diamonds for or from our website. We think this was the right decision for our company for our.
Speaker Change: and we are really proud of the decision that we made to remove Russian Diamonds from our website. We think this was the right decision for our company, for our customers and community, and for the Ukraine. So overall, I'm really proud of that decision.
<unk> and community and for it to Ukraine. So.
I'm really proud of that decision.
Yeah.
Thanks.
Speaker Change: Thank you. And as a reminder, to ask a question, you'll need to press star 1 on your telephone.
Thank you and as a reminder to ask a question you will need to press star one on your telephone.
Speaker Change: Our next question comes from Oliver Chen with Talon, you may proceed with your question.
Our next question comes from Oliver Chen with Cowen You May proceed with your question.
Oliver Chen: Hi, thank you again. The free cash flow conversion has always been really impressive in the business. You know, as you think about the fine jewelry expansion and as you engage in the showroom growth, are there any things we should know, Jeff, about modeling that going forward? Thanks a lot.
Hi, Thank you again of the free cash flow conversion has always been really impressive in the business.
Think about the fine jewelry expansion and as you engage in the showroom growth are there any things we should know Jeff about modeling that going forward. Thanks a lot.
Sure as.
Jeff Kuo: As we continue to grow and find jewelry, we think that we're very well positioned relative to the rest of the industry. First, we have a really
As we continue to grow and fine jewelry.
Think that we're very well positioned relative to the rest of the industry.
First we have a really.
Jeff Kuo: acid light model that we don't need thousands of pieces to launch a given SKU. If you compare that to maybe a traditional jeweler that maybe even to launch one SKU might need to buy
Asset light model that we don't need thousands of pieces to launch a given SKU. If you compare that to maybe a traditional jeweler that maybe even to launch one SKU might need to buy.
Jeff Kuo: thousand pieces to stock up their stores before they even have much of a sense of whether or not something will perform, we're able to take a much more dynamic test and learn approach, potentially launch something just digitally first.
Pieces to stock up their stores before they even have much of a sense of whether or not something will perform we're able to take a much more dynamic test and learn approach potentially launch something just digitally first and just have a lot more nimble footprint than most of the industry I would say also we have this.
Jeff Kuo: and just have a lot more nimble footprint than most of the industry. I would say also we have this.
Jeff Kuo: agile and nimble supply chain that allows us to have very fast turnaround and tight integration with our suppliers compared to traditional jewelers. So we think that we are very well positioned from an inventory management perspective, even as we expand into fine jewelry.
Agile and nimble supply chain that allows us to have very fast turnaround and tight integration with our suppliers compared to traditional jewelers. So we think that we are very well positioned from an inventory management perspective, even as we expand into fine jewelry.
Speaker Change: Okay, and the vendor negotiations has been impressive in terms of benefiting your financials. What's been happening with supply chain and volatility and also as you think about commodity costs, how might that interplay with what you'll experience in your COGS as well as the future?
Okay, and the vendor negotiation has been impressive in terms of benefiting your financials, what's been happening with supply chain and volatility and also as you think about commodity costs and how might that interplay with what what will you'll experience in your cogs as well as customer.
Speaker Change: customers. The other side of this is pricing leverage in the face of what the inflation customers are seeing, although I know you participate at a very premium level. Thank you.
On the other side of this is.
Pricing leverage in the face of what the inflation customers. This thing although I know you participate at a very premium level. Thank you.
Speaker Change: I can start that off. In terms of our vendor relationships, and these are very long-term relationships that we've developed over many years, and as we've grown, we've also really ensured that we have a very agile, nimble supply chain. And this, I think, helps to drive procurement efficiencies because we're able to be very nimble in terms of how we allocate our vendor mix, and we're constantly optimizing across quality and cost considerations. Jeff, do you want to talk?
I can start that off it in terms of our vendor relationships. You know these are very long term relationships that we've developed over many years and as we've grown. We've also really ensured that we have a very agile and nimble supply chain and this I think helps to drive procurement efficiencies because we're able to be very.
In terms of how we allocate our vendor mix and we're constantly optimizing across quality and cost considerations.
Jeff do you want to talk about pricing leverage.
Jeff Kuo: Yeah, so with respect to pricing leverage, similar to some
Yeah, so with respect to pricing leverage similar to some of my.
Jeff Kuo: other comments about about inflation. I mean, we're able to adapt dynamically. And I think we've proven that.
Other comments about.
About deflation.
We're able to adapt dynamically and I think we've proven that we've proven that ability historically with our ability with changing prices in during the COVID-19 earlier parts of the Covid pandemic and you've been in the recent quarter to continue to adapt with the <unk>.
Jeff Kuo: We've proven that ability historically with our ability with changing prices in during the COVID, you know, earlier parts of the COVID pandemic, and even in the recent quarter to continue to adapt.
Jeff Kuo: with the pricing engine, with our optimization of our supplier footprint to
Reising engine with our optimization of our supplier footprint too.
Jeff Kuo: to manage to growing margins even in volatile and dynamic environments. And I think that gives us a lot of confidence and we've built that into our model and our guidance. So I think we.
<unk> managed to growing margins, even in volatile and dynamic environment and I think that gives us a lot of confidence and we built that.
Into our model and our guidance. So so I think we.
Jeff Kuo: Of course, we'll continue to monitor the situation as it evolves, but we have experience dealing with this. We've built it into our model, and we are looking forward to continuing to execute in 2022.
Of course, we'll continue to monitor the situation as it evolves, but we have experience dealing with this we built it into our model and we are looking at looking forward to continuing to execute in 2022.
Speaker Change: OK, and Beth, last, with fine jewelry, a brand question, what will your brand stand for in fine jewelry and or how are you thinking about the right level of curation in fine jewelry? And also, the nature of competition and your thoughts on how that may evolve from a lifestyle perspective and the kinds of items you'll feature and grow. Thanks.
Okay, and best luck with fine jewelry.
One question.
What will your brands stand for and fine jewelry and or how are you thinking about the right level of curation and fine jewelry and also the nature of competition and your thoughts on how that may evolve from a lifestyle perspective in the <unk>.
Kinds of items, you'll you'll feature and grow thanks.
Beth Gerstein: Sure. So as it relates to fine jewelry, I think a lot of the tenants that we have for our brand are that we've already been executing on are very relevant. We're a mission driven brand.
Sure. So as it relates to fine jewelry, I think a lot of the tenants that we have for our brand or that we've already been executing on our very relevant. We're a mission driven brand. We are really looking at high quality very thoughtfully.
Beth Gerstein: We are really looking at high quality, very thoughtfully designed products.
<unk> designed products, we're continuing to use data driven insights in order to curate our product assortment. We're looking at trend forward innovation and constantly introducing newness and freshness to make sure that we're really on the cutting edge in terms of what we're offering to that younger generation and.
Beth Gerstein: We're continuing to use data-driven insights in order to curate our product assortment.
Beth Gerstein: We're looking at trend forward, innovation, and constantly introducing newness and freshness to make sure that we're really on the cutting edge in terms of what we're offering to that younger generation.
Beth Gerstein: And, you know, our FairMind collection, I think, is a really great synergy of all of these factors.
Our fair mind collection, I think is a really great.
Synergy of all of these factors it has storytelling it has real meaning behind it. It's enduring. It also is really beautifully designed.
Beth Gerstein: Storytelling, it has real meaning behind it, it's enduring. It also is really beautifully designed, very personalized and meaningful to the customer.
Very personalized and meaningful to the customer and I think that the meaning that our brand has in jewelry is is I think very similar to what it already exists and engagement and Moreover, we have that customer we've really strong loyalty from our customer who is already bought and engagement rang they've already told their friends about us and now they.
Beth Gerstein: And I think that the meaning that our brand has in jewelry is, I think, very similar to what it already exists in engagement. And moreover, we have that customer. We have really strong loyalty from our customer who's already bought an engagement ring. They've already told their friends about us. And now they have further opportunities to continue to buy for us.
Have further opportunities to continue to buy for future occasions, and I think that they are responding incredibly well.
Beth Gerstein: future occasions, and I think that they're responding incredibly well.
Thank you very helpful Best regards.
Thank you.
Speaker Change: Thank you. And I'm not showing any further questions at this time. I would now like to turn the call back over to Beth Gernstein for any further remarks.
Thank you and I'm not showing any further questions. At this time I would now like to turn the call back over to Beth Garner screened for any further remarks.
Beth Gernstein: Great. Well, thank you everyone. In closing, I want to thank you for your interest in Brilliant Earth. We look forward to speaking with you when we report first quarter results.
Great well, thank you everyone and in closing I want to thank you for your interest in brilliant Earth. We look forward to speaking with you when we report first quarter results.
Speaker Change: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
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