How Does Brilliant Earth Company Work?

Brilliant Earth operates using an innovative omnichannel approach, blending a strong e-commerce platform with a growing network of physical showrooms. As of Q2 2025, the company managed 42 showrooms across the U.S., enabling customers to experience products and receive personalized consultations.

The company's value proposition is built on transparency, sustainability, and responsible sourcing. This commitment extends to Beyond Conflict Free™ diamonds and ethically sourced gemstones, setting it apart in the jewelry market.

This asset-light, data-driven business model facilitates efficient inventory management. Products are often brought to showrooms upon customer request, which helps reduce inventory and theft risks.

The supply chain is rigorously vetted, with suppliers adhering to strict sourcing and compliance standards that surpass the Kimberley Process. This includes traceability protocols for diamonds, extending back to the mine operator.

Brilliant Earth launched its lab-grown diamond line in 2012, establishing a diverse industry offering. The company's strategic retail expansion has seen its showroom count reach 42 by Q2 2025, with more planned for 2025, supporting its digital-first model with personalized in-person consultations.

Despite challenges like a declining average order value to $2,062 in Q1 2025 and increased costs, the company is adapting. A focus on higher-volume, lower-priced fine jewelry, which saw a 38% increase in bookings in Q2 2025, and efficient inventory management are key responses.

The company's competitive advantages are rooted in its strong brand identity centered on ethical sourcing, featuring 'Beyond Conflict Free' diamonds and utilizing 99% repurposed gold in 2024. Its commitment to sustainability is further validated by net-zero emissions reduction targets approved by the Science Based Targets initiative in 2024.

Strategic partnerships, such as the collaboration with Dr. Jane Goodall for a new product line, highlight the company's dedication to environmental conservation. Brilliant Earth also leverages AI for marketing efficiency and invests in technology to enhance its omnichannel customer experience.

Brilliant Earth is a global leader in ethically sourced jewelry and a significant disruptor in the direct-to-consumer (DTC) space. While smaller than major players, its commitment to ESG principles and its agile, data-driven approach give it an edge, especially with Millennials and Gen Z. The company's omnichannel strategy, featuring 42 showrooms as of Q2 2025, aims to capture market share in a fragmented industry.

The ethical jewelry market is poised for substantial growth, projected at an 8.9% CAGR through 2032, creating a favorable environment for Brilliant Earth's expansion. The company's customer loyalty is demonstrated by a 13% increase in repeat orders in Q1 2025, indicating strong consumer engagement with its unique value proposition.

Potential risks include tariff impacts on supply chain costs, fluctuations in gold prices, and broader macroeconomic pressures affecting luxury spending. A decline in average order value and a gross margin contraction to 58.3% in Q2 2025 highlight challenges in maintaining profitability amidst strategic investments and higher ethical sourcing expenses.

The company is focused on expanding its showroom presence, increasing its emphasis on fine jewelry, and utilizing AI for marketing efficiency. Brilliant Earth has raised its full-year 2025 net sales growth guidance to 2.5% to 4%, with Q3 net sales expected to grow 8% to 10% year-over-year.