Q1 2025 Brilliant Earth Group Inc Earnings Call
Speaker Change: Good day and thank you for standing by. Welcome to the Brilliant Earth First Quarter 2025 Ernie's conference call.
At this time, all participants are on a listen only mode [inaudible]
Speaker Change: After the speaker's presentation, there'll be a question in the answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's recording is being.
Speaker Change: Today's conference is being recorded. I would now like to turn the conference over to Colin Bourland. You may now begin.
Speaker Change: Welcome to the Brilliant Earth First Quarter 2025 earnings conference call. My name is Colin Bourland, Vice President of Strategy, Business Development and Invest relations.
Speaker Change: Joining me today are Beth Gerstein, our Chief Executive Officer, and Jeff Kuo, our Chief Financial Officer.
Speaker Change: Please refer to our SEC filings for a description of the risks that could cause our actual performance and result to differ materially from those expressed or implies in these forward-looking statements.
Speaker Change: These forward-looking statements reflect our opinion only as a big aid of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.
Speaker Change: In light of new information, or future events, unless required by law
Speaker Change: Also, during this call, management will refer to certain non-GAAP financial measures, a reconciliation of Brilliant Earth's non-GAAP measures to the comparable GAAP measures is available in today's earnings release, which can be found on the Brilliant Earth Investor Relations website.
I'll now turn the call over to Beth.
Beth Gerstein: Good morning everyone and thank you for joining us today. I'm pleased to share that we delivered another quarter of solid performance within our guidance, marking our 15th consecutive quarter of profitability as a public company.
Beth Gerstein: We saw encouraging trends in our business, with total orders growing 12% year over year.
Beth Gerstein: and repeat orders growing 13% year over year. As our premium brand
Beth Gerstein: Themeless Omni-Tanel Experience, and differentiated product offerings, continue to resonate with both new and existing customers.
Beth Gerstein: I'm proud to report that we achieved an adjusted EBITDA of $1.1 million in Q1, representing a 1% adjusted EBITDA margin, and within our stated guidance range.
Now, let me share some highlights across the business.
Beth Gerstein: And in Q1 we saw positive year-over-year unit growth. Additionally, we saw another quarter of comparatively strong growth in engagement rings priced under $5,000.
Beth Gerstein: Our signature engagement ring collection continues to contribute meaningfully, with another quarter of year-over-year booking scrolls outpacing our total engagement ring collection by double digits. And we are delighted that customers are increasingly drawn to us for our premium one-of-a-kind products.
Beth Gerstein: And our wedding and anniversary band business is strong, driving yearly your bookings growth with outside success in men's wedding bands as well as women's
Beth Gerstein: As a reminder, our assortment of fine jewelry includes items like earrings, necklaces, bracelets and fashion rings.
Beth Gerstein: Fine Jewelry Bookings represented 14% of total bookings in Q1 at approximate 350 basis point expansion over Q1 last year. We again saw strong double digit fine jewelry bookings growth in Q1 far outpacing the industry.
Beth Gerstein: Find Jewelry remains one of our key areas of investment and growth drivers for the business. Add that allows us to introduce new customers to the Brilliant Earth brand, as well as provide additional purchase opportunities for our repeat customers.
whether it's a gift for themselves or others. [inaudible]
Valentine's Day was particularly successful for us this year.
Beth Gerstein: We executed an omnutriental Valentine's Day activation focused on authenticity and connection with our diamonds on the menu campaign.
resulting in our strongest Valentine's Day period ever.
Beth Gerstein: A major contributor to this growth with our exceptional performance in fine jewelry, with booking Screams over 40% year-rear in the two weeks lead us curious to Valentine's Day.
Beth Gerstein: Consumers came to us for everything from our diamond essentials to our on-trend and seasonal collections like our heart and signature collections and of course, our top-selling Jane Goodall collection.
Beth Gerstein: Overall, it is gratifying to say that we are increasingly consumers go to Zooler for special occasions.
Beth Gerstein: We're delighted to continue to be the brand of choice for many established celebrities, influencers, and emerging content creators.
Beth Gerstein: This quarter, we were excited to work with Brook Highland and Kalani Hillaker to create their custom engagement rings, which showed remarkable social engagement, generating 6.2 million impressions and strengthening our brand presence and bridal leadership.
Beth Gerstein: On the showroom front, we opened our second Dallas sport work location in South Lake Texas in February , which is already showing promising results.
Beth Gerstein: We're on track to open one to two more new showrooms this year, which will include our latest design elements, including enhanced trion bars, with increased fine jewelry capacity.
Beth Gerstein: Looking ahead, in Q2 so far, we are continuing to see increased momentum for previous quarters across total and repeat orders and throughout the assortment, including continued positive growth and engagement reunions.
Beth Gerstein: As it relates to tariffs, we are monitoring the evolving situation closely.
Beth Gerstein: Our Price Optimization Engine, an agile data-driven team give us a competitive advantage over the industry to navigate changes in any environment.
Beth Gerstein: The anticipated impact of tariffs is included in our outlook for the year, which Jeff will walk you through in more detail.
Beth Gerstein: I would like to thank the entire Brilliant Earth team for their dedication and amazing contribution to these results. Now I'll hand it over to Jeff, who will walk through the financials in detail and discuss our outlook for the coming quarter any year.
Chuanhong Kuo, Unknown Executive, Beth Gerstein, Colin Bourland
Innovate and meet our top line and profitability expectations.
Let me take you through the details for a few one.
Beth Gerstein: Q1 net sales were $93.9 million, within our guidance range, down 3.5% year-over-year and representing a sequential improvement over Q4 2024 year-over-year performance.
Beth Gerstein: Total orders grew 12% year-over-year and repeat orders grew 13% year-over-year in the first quarter demonstrating the effectiveness of our customer acquisition and retention efforts and the resonance of our brand and products with consumers.
Average order value for AOV was $2,062 in Q1.
Beth Gerstein: It's represents a decline of 14.2% year-over-year in Q1 as we continue to deliver comparatively strong performance in bridal price ranges below $5,000, where we are seeing some of the strongest consumer demand.
Beth Gerstein: and as we continue to broaden and diversify our overall assortment, including in our fine jewelry collection.
Beth Gerstein: Q1 gross margin was 58.6% within our medium-term gross margin target in the high 50s and a 130 basis point decline over Q1s last year.
Beth Gerstein: The year of a year change in gross margin was primarily driven by higher gold costs and labor and host and sea spend related to our fulfillment and distribution set
Beth Gerstein: We delivered Q1-adjusted EBITDA of $1.1 million or a 1.1% adjusted EBITDA margin within our guidance range.
Beth Gerstein: As Beth mentioned, this marks our 15th consecutive quarter of profitability and is driven by our strong gross margin, vines with diligent data-driven management of our marking spend and other operating
Beth Gerstein: Q1 operating expense was 62.4% of mess sales, compared to 59.0% of mess sales in Q1 2024. As we continue to balance making investments to drive long-term growth
with Discipline in Expense Management
Beth Gerstein: Adjusted operating expense does not include items such as equity-based compensation, depreciation and amortization, showroom pre-opening expenses and other non-requering expenses.
Beth Gerstein: Q1 marketing expense was 24.5% of net sales compared to 23.7% of net sales in Q1 2024.
I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry.
Beth Gerstein: This represents an approximately A basis point of year-rear D-Leverage compared to Q-1 2024.
Beth Gerstein: A marketing spend in Q1 was better than our expectations as we continued to be disciplined in driving efficiency.
Beth Gerstein: We continue to expect to drive year over year leverage for the full year 2025 as per our Medium-Term Outlooks.
Beth Gerstein: Employee costs that the percentage of net sales were higher in the first quarter by approximately 100 basis points as adjusted year-over-year.
Beth Gerstein: This includes growth in showroom employees including from newly open showrooms as we continue to strategically focus on our showroom expansion.
Beth Gerstein: Other GNA as the percentage of net sales increased year-over-year by approximately 120 basis points as adjusted for the quarter as we continue to crudely invest in our business.
This includes continued investments in technology, the showroom rent and expenses.
Beth Gerstein: Our data-driven capital efficiency and inventory life operating model continues to provide competitive advantages.
Beth Gerstein: Our year-over-year inventory grew by 2.4 percent, even with our significant growth in fine jewelry and a larger showroom footprint.
Beth Gerstein: Our lower risk, Agile inventory model and strong balance sheet continue to differentiate us from the rest of the industry.
Beth Gerstein: We ended the first quarter with approximately $147 million in cash.
Beth Gerstein: In addition, we ended the period with a strong net cash position of approximately $92.5 million, a year over your increase of approximately $4 million.
Beth Gerstein: Our ability to generate net cash further differentiates us from many others in the industry and highlights the benefits of our asset-like data-driven business model.
Beth Gerstein: Our financial strength allows us to continue to make prudent investments in the business to drive long-term growth.
In Q1, we spent approximately $163,000 repurchasing our common stock.
Beth Gerstein: This takes our total spend on stock repurchases to date to approximately $801,000 as of the end of Q1.
Beth Gerstein: Our continued intention is to use this program strategically while balancing our overall investment decisions, including consideration of factors such as trading volume and our public flow.
Turning to our outlook for Q2 and 2025.
Beth Gerstein: As mentioned in our last call, we expect to continue making investments with a compelling ROI that set the stage for both near and long-term sustainable, possible growth in the context of a dynamic macro environment.
for the court.
Beth Gerstein: We expect net sales to be between minus 3% to flat year-to-year, which is a sequential improvement year for your growth compared to Q1.
Beth Gerstein: We expect adjusted EBITDA to be between minus 1.5 and plus 2 million dollars.
Beth Gerstein: While we have been able to move nimbly to optimize pricing in our procurement strategy, we do expect a limited impact on our Q2 gross margin from higher gold costs and tariffs, assuming that care of rates and metal prices remain unchanged from current levels.
Beth Gerstein: or the year. We are reiterating our net sales guidance of 1% to 3% growth year-over-year.
Beth Gerstein: We continue to expect that resume growth will be fast-weighted with the mid-to-high single-digit year-of-year growth rate in the second half.
Beth Gerstein: Driven by improvements in engagement rings, the growth and annulization of our showrooms, a more favorable comp from Q3 2024, and strong fine jewelry performance, particularly in Q4, which is a seasonally important fine jewelry quarter.
Beth Gerstein: We are also reiterating our adjusted evidom margin guidance in the range of approximately 3 to 4 percent.
Beth Gerstein: For Gross Margin, as previously mentioned, we expect a limited impact from gold prices and tariffs in 22.
Beth Gerstein: Over the balance of the year, assuming that tariff rates and metal prices are the same as they are today, we expect to be able to further mitigate their impact through our pricing and procurement strategy, allowing us to maintain a similar gross margin outlook for H2 as our prior expectations.
Beth Gerstein: We've also been successful in managing Malking's spend to better than expected levels for Q1 and expected drive incremental efficiencies in H2 above our prior expectations.
Beth Gerstein: As I mentioned during our last call, we will continue to make medium and longer term investments in 2025, including in employee costs and other TNA.
Beth Gerstein: Given our progressive sequential revenue growth and that we don't expect to have significant seasonal incremental employee and other GNA costs.
Beth Gerstein: We expect the bulk of our adjusted EVA DAW will come from H2 with about two-thirds of that coming in Q4.
Chuenhong Kuo, Unknown Executive, Beth Gerstein, Colin Bourland
Speaker Change: I would also like to highlight two points regarding our death facility as we continue to evaluate the capital structure and terms that are most effective for our business.
Speaker Change: We are spending to pre-pay $20 million of our term loan in Q2.
Speaker Change: which will leave approximately $35 million of outstanding debt principle under the facility and will result in net interest expense savings of approximately $0.6 million on an annual run rate basis at today's interest rates.
Speaker Change: We are also working with our lenders to amend certain covenants in our guest facility, including to waive the testing of our FCCR covenants and to add a liquidity covenant through Q1 2026.
Speaker Change: As we look ahead, we believe that by leveraging our data first mindset
Speaker Change: Brutally managing expenses and maintaining our capital efficient model, we will be able to navigate market changes better than the industry while managing towards a possible year.
Speaker Change: The results we've achieved this quarter demonstrate our ability to execute and capitalize on opportunities that create enduring doubt. With that, I will turn the call over to the operator for questions.
Speaker Change: Thank you. As a reminder, if you would like to ask a question, please press star 1-1 on your telephone. You'll hear the automatic message revised in your hand is raised. If you would like to remove yourself, please press star 1-1 again. We also ask that you wait for your name and company to be announced before announced.
Speaker Change: Announcing your question. As well let me just say for one question and one follow up one moment while we compile the Q&A roster.
Speaker Change: And our first question will be coming from the line of Ashley Owens of Keybank Capital Markets Your Line Is Open.
[inaudible]
Ashley Owens: Hi, good morning. So, first to start, could you just elaborate on some of the dynamics going on with an engagement that you're observing? I know you mentioned units were up, but is this a trend you've seen continue thus far into 2Q, or is there any if macro impact that could be pressuring as customer or any other dynamics into the quarter that you'd feel comfortable sharing right now?
Ashley Owens: Hi Ashley, thanks for the question. We were really encouraged by the positive unit growth that we saw in Q1 and we are continuing to see that in Q2 as well.
Ashley Owens: We talked about this multi-year normalization, but we were really encouraged by the fact that the brand and the product are resonating, that the signature collection is resonating on the engagement ring side and that the consumers coming to us as a bridal leader. So, feeling encouraged about that in terms of what we're seeing so far to dating Q2.
Okay, great. And then maybe-
Ashley Owens: As well, anything you can talk about with the facing of revenue between 3Q and 4Q and it sounds like there's a few comps there that we should be mindful of but just anything you can say there and then additionally I know Terfs talked about a little bit there Jeff but could you maybe elaborate on your sourcing exposure and [inaudible]
Ashley Owens: Any impacts we're expecting if we do get a tear presumption and then additionally to I think it may be helpful. Discussing how your protocol possibly differentiate you from the competition in terms of some of those tear-related risks that are floating out there right now with raw and lab diamonds. Thanks.
Ashley Owens: Jeff, do you want to take the bathing of revenue in the tariff question? Yeah.
Jeff Kuo: Thanks, Ashley. So, in terms of phasing of revenue, we do expect, as mentioned, that revenue is going to be back half weighted with a mid to high single digit year-over-year growth rate in the second half, and that's driven by a number of factors that I was...
Jeff Kuo: mentioning including improvements in engagement rings, the fact that Q4 is seasonally an important fine jewelry quarter and the strong fine jewelry performance that we've been having.
Jeff Kuo: Both in the Annudilation of Showrooms, and then also noting that we do have a more favorable comment from Q3 of 2024. So I think those are some of the factors that we're considering in terms of thinking about the shaping over the back half of the year.
Jeff Kuo: In Q2, as I mentioned, we do have a limited impact which is included in our guidance.
I think there was a way that we're thinking about this.
We have been able to move nimbly.
to mitigate the impact.
Impact of Terrorist [inaudible]
Jeff Kuo: to manage to similar H2 gross margins as our prior expectations and this includes operational actions.
Jeff Kuo: as well as pricing actions. And as you know, we have been able to operationally and with things like price optimization.
Jeff Kuo: continue to adapt to dynamic environments over our history and think that we're well equipped here and we also have, as Beth mentioned, limited direct exposure to China and this is all contributing to us being able to keep.
I appreciate the color. Thanks so much. For the long.
Thank you one moment for our next question.
Jeff Kuo: Thank you very much. Thank you. See you. Thanks, everyone. Good night. Good night. Thank you. Goodnight. Goodnight. Good night. Goodnight. Thank you for watching. I'll see you next time.
Speaker Change: And our next question will be coming from the line of Oliver Chen or PD Cowan, your line is open
Oliver Chin: Hi Beth and Jeff. As we think about the growth algorithm going forward, do you expect AOVs to continue to be pressured by fine jewelry? And what are your thoughts on achieving growth of mid-single, the high single digits longer term? Like what will it take to get there? Will AOVs continue to be down mid-teams for the next couple of years? Thank you.
Thanks, Oliver. I can start that off.
Oliver Chin: So we're really encouraged by the growth that we're seeing in the fine jewelry category and I gave some numbers earlier that just helped to contextualize it but the fact that it was up 40% around Valentine's Day
Oliver Chin: that it's 14% of total bookings just shows you, you know, while we've been growing a lot, even over the last few years.
Oliver Chin: There's still so much headroom in terms of the overall opportunity. We know that for most schoolers this represents.
Oliver Chin: The majority of their revenue and we're still very early in the journey and yet we're also just seeing the brand resonate the fact that we have...
A really strong on-trans assortment with proprietary design collections.
Oliver Chin: and that omnichannel experience where we're really able to bring it into both the digital channels as well as in the showrooms, where we're also seeing really nice growth. So all of this to me just shows you that we're increasingly known as the destination for fine jewelry for the millennial and gems the audience.
and so that the AOVs dot- [inaudible]
Oliver Chin: Our resulting, you know, is a natural effect of that and I think it's also just showing the resonance of the brand. Just can help maybe you can help contextualize it a little bit, but I think overall we're very excited that the strategic initiatives that we have around jewelry are working.
Jeff Kuo: Yeah, and just to compliment what Beth said, I think how we get to higher growth rates is really a continuation of executing along the strategic initiatives that we have been executing on including as Beth was talking about the success that we're having in fine jewelry.
Jeff Kuo: The uplift that we've been able to drive with our showrooms.
Jeff Kuo: The engagement with our brand and our products overall, supplemented by
Jeff Kuo: on going gradual improvement in engagement rings, and we're seeing good signs of that. So it's really a continuation of the focus on the brand and the product and the experience that really gets us to continued success and higher growth rates in the future.
Jeff Kuo: Unknown Executive, Beth Gerstein, Colin Bourland, Unknown Executive, Beth Gerstein, Colin Bourland, Unknown Executive
Speaker Change: Okay, follow up, but did you say engagement trends are negative? What are your thoughts on when the industry might turn?
Jeff Kuo: Positive, and as we think more broadly, where some of the building blocks for margin expansion, how do you see marketing as a percentage of sales evolving?
Speaker Change: How can you drive more fixed cost leverage? Gold may continue to move against you for the next few quarters I assume until you anniversary this or that's a unknown factor but would love dots there. Thank you.
Speaker Change: Overall, that's driven by the fact that under 5,000 is very strong and I think that's also a nice indicator that the market has normalized quite a bit.
Speaker Change: from where we were over the past few years. So generally, we're encouraged by the engagement trends that we are seeing and the unique growth that we've been seeing. Jeff, do you want to talk a little bit about margin expansion and marketing for that?
Jeff Kuo: Sure, would be glad to. Thanks for your question, Oliver. Some terms of gross margin just as a reminder is to our medium-term algorithm, we have guided to and continue to guide to a high 50s percent gross margin and we think that that is...
Jeff Kuo: that supported by a number of different things, including a steadfast focus on maintaining our premium brand and not being discount oriented as well as operational actions that you know such as our [inaudible]
Jeff Kuo: price optimization engine focused on procurement efficiencies and other other levers that have been able to get us to the gross margin where we are today.
Jeff Kuo: and we continue to be agile with respect to how we navigate environment of gold prices or terrorists. And we think that we are better equipped.
Jeff Kuo: than the average participant in the industry to be nimble to leverage the strong relationships that we have with our suppliers and to be data driven and dynamic in terms of how we approach this to manage to high and strong gross margin levels.
Jeff Kuo: In terms of marketing as a percentage of sales, we do expect to be able to over the next few years including this year continue to drive to year over year leverage.
in Marketing Spend as a percentage of sales.
Jeff Kuo: And we've been successful in our efforts of growing our brand awareness, using things like the growth of our showrooms to build awareness and drive up list in metros.
Jeff Kuo: to leverage things like fine jewelry, which allows for additional repeat purchase opportunities to capture more opportunities with each of our customers. And we think that those are some of the levers that will allow us to continue to have success.
Jeff Kuo: in managing marketing expense, as well as just overall data-driven ROI approach to how we think about all of our investments.
Jeff Kuo: towards things like technology to allow us to scale and grow and manage our objects efficiently. And we think that as we continue to expand and make those investments and grow our top line base, there will be opportunities.
for leveraging those investments over a greater revenue base.
Thanks a lot, that's your words.
Thanks, Oliver [inaudible]
Speaker Change: Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone.
Speaker Change: Our next question will be coming from the line of Dana Tessley of Tessley Advisory Group. Your line is open.
Hi, good morning, everyone.
Speaker Change: As you talked about the strength of the two weeks leading up to Valentine's Day, how do you try and gillate before and after Valentine's Day of what you saw, what were some of the best sellers during Valentine's Day, and how you thicken the going forward, and lastly in terms of pricing with what you had mentioned during gold.
Speaker Change: What's how you're thinking about price changes going forward for the different categories? Thank you.
Thanks, Dana.
So in terms of the Valentine's Day performance,
Speaker Change: I think this is just a testament to how well our team and our brand is performing in these key occasions. We saw great performance over the holiday period, continued strength with Valentine's Day. We're very excited about upcoming Mother's Day.
Speaker Change: and I think this is a mix of the assortments that we have which is very deliberate, I mentioned it's curated, ten four words.
Speaker Change: and it's also I think brings a lot of newness, so at Valentine's Day we had a really beautiful heart collection.
Speaker Change: That did really nicely. And then we're continuing to sell our diamond essentials, our unique collections like Soul and Jane.
Speaker Change: as well as some of those occasions specific items. So overall I would say that the best sellers that we're seeing just are reflective of a lot of the design advantages that we have and the design leadership that we have.
Speaker Change: and we're going to continue to invest in introducing newness into the category and bringing these fresh new collections to our consumers in a really innovative way with the campaigns behind it.
Speaker Change: really thoughtful about how we're pricing and just continuing to invest in testing and learning, so you know we're
Speaker Change: We're, that's what our history has been, you know, really from the beginning. So we're going to continue to implement new tasks and just try and understand what the appetite is from the consumer level. You know, obviously there's a lot of pressures that consumers are failing now.
Speaker Change: So, you know, we're making sure that we are keeping our costs down as much as we can, but we are testing and I think the fact that we have a proprietary collection also allows us to have a little bit more flexibility there.
Speaker Change: God, and just one follow up on the showroom. I think this year it's two to three showroom openings last year. I think it was seven. How are the showrooms doing? What are you looking for in terms of performance? Is there a difference by region? And if you think about 26, do you increase the number of openings or how you're looking at it? [inaudible]
Speaker Change: Making sure that we're taking a very ROI-driven approach overall. We have a nice install base at this point.
Speaker Change: with over 40 showrooms. And so we're going to continue to look for opportunities there, but the compliment to that is that we're also looking to invest.
Speaker Change: in our current showrooms. We think there's a lot of opportunity both in terms of bridal wedding as well as fine jewelry where we're seeing really nice growth as well. In terms of how we're thinking about approaching it, you know we continue to see the Omnichannel model very successful for us but...
Speaker Change: I don't think we're ready to draw a line in the sand as it relates to 2026 just yet, but continue to see opportunity there and as we're seeing locations, we are continuing to sign these up.
Thank you.
Speaker Change: Thank you, one moment for the next question. And the next question will be coming from the line of Dylan.
Carden, Avoy and Blair, Linus Open. Thank you very much.
Dylan Carden: Thanks. Just on the gross margin bit, it's seen this nice sustained run over several years. I think in some capacity based on the fine jewelry category, but does that now at a point where also opens you up to
Speaker Change: You know, you can't have sort of the just-in-time model that you might have on engagement and therefore we should expect kind of more ebbs and flows and gross margin. Thanks.
Unknown Speaker.
Speaker Change: Sure, I'll be glad to take that, Dylan. So, in Q1, our gross margin was slightly lower year over year, driven by higher gold costs and labor occupancy spend related to our...
Speaker Change: Full Film and Distribution Center, and I think we've been able to be nimble and adjust to changing input costs as we have been.
Speaker Change: and I think that that really represents an advantage for us as a brand.
Speaker Change: With respect to fine jewelry as a percentage of our businesses that mentioned it was about 14% of our bookings
Speaker Change: in Q1, and I think that there's not a fundamentally different...
Speaker Change: But we are continuing to be very dynamic and data driven regarding how we manage whether it's pricing, whether it's how we source and it's still a smaller part of our business and the DNA of our
Speaker Change: How we operate is really to take data, take a variety of different inputs, think about how we operate, how we price and those have been success factors and how we've been able to manage the strong gross margin. I don't think anything that's fundamentally changed in that regard.
Beth Gerstein: Chuenhong Kuo, Unknown Executive, Beth Gerstein, Colin Bourland, Unknown Executive, Beth Gerstein,
Thank you.
Sure.
Speaker Change: Thank you one moment and we do have a follow up question coming from the line of Oliver.
Chen, Up to the Caroline, the line is open. [inaudible]
Oliver Chen: Hi, thanks again. Beth would love your take on the roadmap ahead for fine jewelry in terms of what you're doing there with innovation and your plans.
Oliver Chen: More Medium Term. Also, as you spoke to engagement earlier on that topic, what do you see happening with the customer in terms of the customer looking for value and value orientated price points there? Do you see that?
Speaker Change: Continuing or intensifying or is that stabilizing? There's a lot of cross-currence with consumer competence. Thank you.
Speaker Change: New Innovative Collections is continuing, so we had a really successful one, so we've changed it all. Last year we're continuing to invest in that specific collection, so we're deepening the existing collections that we have.
Speaker Change: and as well as introducing newness that's both tied to occasion as well as for self-purchase.
[inaudible]
Speaker Change: So that's essentially how we're thinking about the assortment and we're complementing that with digital capabilities that we're investing in as well as
Speaker Change: More and more introducing these fine jewelry collections into the showroom and seeing really positive response from that as well.
Speaker Change: So that's essentially how we're thinking about the roadmap. As it relates to engagement, you know, I do think that customers have been looking for value price points I think that's part of the driver why we're seeing kind of how such performance under the $5,000 ASP
Speaker Change: And I wouldn't say that that has changed in Q1, we still see relatively similar performance as it relates to that engagement ring consumer, but certainly this is a category where people shop with a budget and...
Speaker Change: You know, it is, I think, a fact that consumers are more cautious, these days.
Speaker Change: But we're still saying because this sustained unit growth, and I wouldn't say that Q2 is materially different.
Speaker Change: Thank you for watching. Please subscribe to my channel. I'm also on Twitter and Instagram. Please follow me on Twitter and Instagram. Thank you for watching.
Thanks again.
Thank you, Oliver.
Speaker Change: Thank you, and that does conclude today's Q&A session. I would like to turn the call back over to Beth Gerstein for close remarks. Please go ahead. Thank you everyone for attending our Q1 hall and we're looking forward to talking to you for Q2. And happy early Mother's Day.
and I hope to just talk to you all soon.
Speaker Change: Thank you all for joining today's conference call. You may now disconnect.