Brilliant Earth sees Q3 net sales growth approximately flat y/y.
Company expects Q3 adjusted EBITDA of $3 mln to $5 mln.
Brilliant Earth raises annual adjusted EBITDA guidance to $13 mln-$15 mln.
Company projects full-year net sales of $459 mln-$462 mln.
Result drivers
FINE JEWELRY BOOKINGS - Co said 32% y/y growth in fine jewelry bookings drove results, highlighting diversification beyond bridal.
GROSS MARGIN IMPROVEMENT - Co reported a 360 bps sequential increase in gross margin, attributing it to business model agility.
OPERATING EXPENSE LEVERAGE - Co said operating expenses as a percentage of net sales improved by 250 bps y/y, supporting profitability.
Analyst coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for Brilliant Earth Group Inc is $1.54, about 48.1% above its August 5 closing price of $1.04.
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 13 three months ago.
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