Brilliant Earth Group Inc (BRLT) 2024 Q2 法說會逐字稿

Thank you for standing by, and welcome to the Brilliant Earth second quarter 2024 earnings call. (Operator Instructions) As a reminder, today's program is being recorded.

感謝您的耐心等待，歡迎參加 Brilliant Earth 2024 年第二季財報電話會議。（操作員指示）提醒一下，今天的節目正在錄製中。

And now I'd like to introduce your host for today's program, Colin Bourland. Please go ahead.

現在我想介紹一下今天節目的主持人 Colin Bourland。請繼續。

Thank you, and good afternoon, everyone. Welcome to Brilliant Earth second quarter 2024 earnings conference call. Joining me today Beth Gerstein our Chief Executive Officer; and Jeff Kuo, our Chief Financial Officer.

謝謝大家，大家下午好。歡迎參加 Brilliant Earth 2024 年第二季財報電話會議。今天與我一起的是我們的執行長貝絲‧格斯坦 (Beth Gerstein)；和我們的財務長 Jeff Kuo。

During the call today, management will make certain 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 results to differ materially from those expressed or implied in these forward-looking statements.

在今天的電話會議上，管理階層將做出 1995 年《私人證券訴訟改革法案》含義內的某些前瞻性聲明。這些前瞻性陳述存在風險和不確定性，可能導致實際結果有重大差異。請參閱我們向 SEC 提交的文件，以了解可能導致我們的實際業績和結果與這些前瞻性陳述中明示或暗示的內容有重大差異的風險描述。

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 these forward-looking statements in light of new information or future events unless required by law.

這些前瞻性陳述僅反映我們截至本次電話會議之日的意見，除非法律要求，否則我們沒有義務根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修改結果。

Also during this call, management will refer to certain non-GAAP financial measures. A reconciliation of certain non-GAAP measures to comparable GAAP measures is available in today's earnings release, which can be found on the phone or Investor Relations website.

此外，在這次電話會議中，管理階層也會參考某些非公認會計準則財務指標。今天的收益報告中提供了某些非公認會計準則衡量標準與可比較公認會計準則衡量標準的對賬，您可以在電話或投資者關係網站上找到該報告。

I'll now turn the call over to Beth.

我現在將電話轉給貝絲。

Afternoon and thank you for joining us today. I'm pleased to report that we continued to drive the progress of our strategic initiatives and deliver another quarter of profitability. This is our 12th consecutive quarter of profitability as a public company and something I'm very proud of. It's a testament to the talent and hard work of our incredible team, and I want to thank them for their dedication.

下午好，感謝您今天加入我們。我很高興地報告，我們繼續推動戰略計劃的進展，並實現了另一個季度的盈利。這是我們作為一家上市公司連續第 12 個季度實現盈利，我對此感到非常自豪。這證明了我們令人難以置信的團隊的才華和辛勤工作，我要感謝他們的奉獻精神。

As we are all seeing, we continue to observe challenges within the $300 billion jewelry industry, particularly highlighted by ongoing and increased promotional activity. Our ability to manage with both agility and discipline within this environment is reflected in our results that were within our net sales guidance and exceeded our profitability guidance for the quarter.

正如我們所看到的，我們繼續觀察價值 3000 億美元的珠寶行業面臨的挑戰，特別是持續不斷和不斷增加的促銷活動。我們在這種環境下進行敏捷和紀律管理的能力反映在我們的業績中，該業績在我們的淨銷售額指導範圍內，並超出了我們本季度的盈利指導範圍。

I'll start with some highlights of our Q2 performance and update you on the progress we're making on our key priorities. Net sales declined 4% year over year to $105.4 million and were within our net sales guidance range. For the quarter. Total orders increased by 4% year over year.

我將首先介紹我們第二季業績的一些亮點，並向您介紹我們在關鍵優先事項上取得的最新進展。淨銷售額年減 4% 至 1.054 億美元，位於我們的淨銷售額指引範圍內。對於本季。訂單總額較去年同期成長4%。

While we had another strong quarter in repeat orders, which increased by 17% year-over-year, average selling price grew year over year across our product assortment, including engagement rates, wedding bands and fine jewelry in Q2 as they did in Q1, gross margin was 60.8% for a 320 basis points increase year over year, reflecting our continued position as a premium brand within the jewelry industry. Jeff will provide additional commentary on our gross margin expansion.

雖然我們的重複訂單再次強勁，同比增長 17%，但我們產品種類的平均售價同比增長，包括第二季度的參與率、結婚戒指和高級珠寶，與第一季一樣，毛利率為60.8%，年比成長320 個基點，反映了我們在珠寶業的高端品牌地位。傑夫將對我們的毛利率擴張提供更多評論。

Q2 adjusted EBITDA of $5.5 million or a 5.2% margin was ahead of expectations. Our exceptional profitability continues to demonstrate our strategic approach in balancing profitability while setting the stage for long-term growth. While the overall industry remains challenged, particularly in bridal and in e-commerce, we still maintain our expectations around a multiyear path to normalization.

第二季調整後 EBITDA 為 550 萬美元，利潤率為 5.2%，超出預期。我們卓越的獲利能力繼續證明了我們在平衡獲利能力的同時為長期成長奠定基礎的策略方法。儘管整個行業仍然面臨挑戰，特別是在婚紗和電子商務領域，但我們仍然維持對多年正常化道路的期望。

I spoke last quarter about the highly promotional environment in the jewelry industry with elevated discounting activity among peers. This persisted in Q2 and continues into Q3, but we remain focused on investing in quality growth and protecting our premium brands to deliver sustainable profitability and position us to take share in this highly fragmented industry.

上個季度我談到了珠寶業的高度促銷環境以及同行之間折扣活動的增加。這種情況在第二季度持續存在，並持續到第三季度，但我們仍然專注於投資品質成長和保護我們的優質品牌，以實現可持續的盈利能力，並使我們能夠在這個高度分散的行業中佔據份額。

Let's talk about the quarter, starting with the distinctive high quality products for which we are known. As I mentioned, this quarter saw average selling price growth across our assortment, including engagement rings, wedding bands and fine jewelry, even as the engagement market was challenged, including for us we saw outsized growth within our unique designs only available at Brilliant with our signature engagement rent collections, realizing bookings growth of 6% year over year in Q2.

讓我們從我們聞名的獨特高品質產品開始討論本季。正如我所提到的，本季我們的產品類別（包括訂婚戒指、結婚戒指和高級珠寶）的平均售價有所增長，儘管訂婚市場面臨挑戰，但對我們來說，我們看到只有在Brilliant才能買到的獨特設計中出現了大幅增長。

This quarter, we also amplified our bridal offering with the launch of our signature collections campaign that features an exquisite array of proprietary designs that celebrates exceptional craftsmanship and unique design drawing inspiration from the natural world, each piece and the collection embodies the elegance and wonder of nature in celebration of the craftsmanship of the Signature Collection.

本季度，我們還推出了我們的標誌性系列活動，擴大了我們的新娘產品範圍，該活動以一系列精緻的專有設計為特色，頌揚卓越的工藝和從自然世界汲取靈感的獨特設計，每件作品和系列都體現了優雅和奇妙。

We launched a campaign taking customers through each aspect of the in-house design process. We also launched our fair-minded bridal collection, which promotes economic development and environmental protection of small-scale mining communities.

我們發起了一項活動，引導客戶了解內部設計流程的各個面向。我們也推出了公正的新娘系列，促進小型採礦社區的經濟發展和環境保護。

Turning to wedding and anniversary vans, we achieved record sales this quarter within both women's and men's offerings, resulting in double digit bookings growth year over year. I'm particularly excited about the performance of our men's brand assortment, which achieved 32% bookings growth year-over-year in Q2.

談到婚禮和週年紀念車，本季我們在女士和男士產品中都實現了創紀錄的銷售，導致預訂量同比實現兩位數增長。我對我們男裝品牌系列的表現感到特別興奮，第二季的預訂量比去年同期成長了 32%。

Another high point for the quarter came from our continued growth in fine jewelry, where we saw another successful quarter bookings growth at 29% year over year. As this quarter encompasses two important gifting holidays of the year, Mother's Day and Father's Day, and we were well equipped for everyone's gifting needs.

本季的另一個高點來自我們高級珠寶業務的持續成長，季度預訂量年增 29%，取得了成功。由於本季包含一年中兩個重要的送禮節日：母親節和父親節，我們已做好充分準備，滿足每個人的送禮需求。

In fact, excluding the holiday shopping period in Q4, we had our biggest ever day of fine jewelry sales in our showrooms in the lead-up to Mother's Day and for the two weeks leading up to Father's Day, we more than doubled bookings year over year in our men's fine jewelry collection.

事實上，排除第四季度的假期購物期，在母親節前夕，我們的陳列室中的高級珠寶銷售量創下了有史以來最高的一天，在父親節前的兩週內，我們的預訂量同比增加了一倍多今年我們的男士高級珠寶系列。

While fine jewelry is still a small part of our business, we remain excited by the continued trajectory of our offering. As you have heard me say before, fine jewelry offers us an incredible opportunity to acquire lifelong customers outside of our core bridal business and to expand our reach among both first-time and repeat buyers.

雖然高級珠寶仍然只占我們業務的一小部分，但我們仍然對我們產品的持續發展感到興奮。正如您之前聽我說過的那樣，高級珠寶為我們提供了絕佳的機會，可以在我們的核心婚紗業務之外獲得終身客戶，並擴大我們在首次購買者和回頭客中的影響力。

We continue to be encouraged by the performance of our 37 showrooms that continue to deliver on our seamless omnichannel strategy and provide our customers with an elevated approachable shopping experience as an omnichannel brand. We know that a customer's journey to span multiple touch points and purchasing opportunities from shopping online to seeing product in-store for customers who have visited a showroom.

我們繼續對 37 個展廳的表現感到鼓舞，這些展廳繼續實施我們的無縫全通路策略，並作為全通路品牌為我們的客戶提供更平易近人的購物體驗。我們知道，客戶的旅程跨越多個接觸點和購買機會，從線上購物到為參觀過陳列室的客戶在店內查看產品。

We saw 9% bookings growth year over year in engagement rates, while wedding band and fine jewelry bookings growth year over year for showroom customers outpaced the total business through a combination of our seller showroom staff, continued enhancements to the customer experience and our diligent management of expenses.

我們的參與率年增了 9%，而透過我們的賣家展廳工作人員、持續增強的客戶體驗以及我們的勤奮管理，展廳客戶的婚戒和高級珠寶預訂量同比增長超過了整體業務的費用。

We continue to see strong post opening Metro uplift and compelling four-wall EBITDA from our showrooms. As you know, we plan to open three more showroom locations this year, two in Boston and our first New York City ground location, and we've been busy this quarter continuously enhancing our existing fleet with refreshes in three of our showrooms, Washington, DC, Denver and Philadelphia, as well as overall strategic brand elevation focused on design, quality and elegance.

我們繼續看到 Metro 開幕後的強勁成長以及展廳中令人矚目的四面牆 EBITDA。如您所知，我們計劃今年再開設三個陳列室，其中兩個位於波士頓，第一個位於紐約市地面位置，本季度我們一直忙於不斷增強我們現有的機隊，更新了我們在華盛頓、華盛頓特區、丹佛和費城，以及注重設計、品質和優雅的整體戰略品牌提升。

We continue to bring our brand to life, both inside and outside our showrooms with brand and cultural moments across her Day, Mother's Day, Father's Day and five this quarter, starting off the quarter with Earth Day holiday that directly aligns with our mission. We launched the future is Brilliant campaign where in celebration of Jane Goodall's 90th birthday.

我們繼續在展廳內外將我們的品牌帶入生活，在母親節、母親節、父親節和本季度的五個節日舉辦品牌和文化時刻，並以與我們的使命直接相關的地球日假期開始本季度。為了慶祝珍古道爾的 90 歲生日，我們發起了「未來輝煌」活動。

We invited the next generation of thought leaders and sustainability advocates to advanced drilling our leadership in sustainability and responsible sourcing. On that note, I'm excited to share that we have officially submitted our near term and net zero company-wide emission reduction targets with the science-based targets initiative.

我們邀請了下一代思想領袖和永續發展倡議者來進一步挖掘我們在永續發展和負責任採購方面的領導地位。在這一點上，我很高興地告訴大家，我們已經透過基於科學的目標倡議正式提交了近期和全公司範圍內的淨零排放目標。

An essential part of driving transformation in our supply chain and innovation in low-carbon technologies and production practices. We look forward towards targets being validated and shared with the public as the quarter progressed. We reached the top gifting holiday of the quarter, Mother's Day where our beauty and the gesture campaign in partnership with influencer has a button captured in an exclusive feature in people magazine contributed to the strong performance I mentioned earlier. We also saw continued success in other brand moments.

這是推動供應鏈轉型以及低碳技術和生產實踐創新的重要組成部分。我們期待隨著本季的進展，目標得到驗證並與公眾分享。我們到達了本季最重要的送禮節日——母親節，我們與影響者合作的美麗和手勢活動在《人物》雜誌的獨家專題中捕捉到了一個按鈕，這為我之前提到的強勁表現做出了貢獻。我們也在其他品牌時刻看到了持續的成功。

This year, we had our most successful VIP Brilliant campaign with sales months along for Thailand, generating over 18 million impressions in closing in light of ongoing industry and overall consumer headwinds. I'm proud of our results this quarter across our product innovation, omnichannel experience, continued brand momentum and resulting profitability.

今年，我們在泰國開展了最成功的 VIP Brilliant 活動，在數月的銷售時間內，鑑於持續的行業和整體消費者逆風，最終產生了超過 1800 萬次展示。我對本季我們的產品創新、全通路體驗、持續的品牌動能和由此產生的獲利能力的業績感到自豪。

We have encountered a weaker than expected consumer environment, specifically for highly considered purchases, and we remain cautious for the rest of this year. Given recent headwinds and economic uncertainty, we recognize that this is a challenging period and we are not immune to its impact.

我們遇到了弱於預期的消費環境，特別是對於經過深思熟慮的購買而言，我們在今年剩餘時間內保持謹慎態度。鑑於最近的不利因素和經濟不確定性，我們認識到這是一個充滿挑戰的時期，我們也不能倖免於其影響。

But as we have said before, we will focus on quality growth that protects and grows our brands, and we'll continue to take a balanced, agile and intentional approach to managing the business. We have conviction in our long-term strategy to drive growth and market share gains through brand awareness and relevance and industry leading omnichannel experience and through our differentiated and high-quality products.

但正如我們之前所說，我們將專注於保護和發展我們品牌的品質成長，我們將繼續採取平衡、敏捷和有目的的方法來管理業務。我們堅信我們的長期策略是透過品牌知名度和相關性、行業領先的全通路經驗以及我們的差異化和高品質產品來推動成長和市場份額的成長。

With that, I will hand the call over to Jeff, who will walk you through how this impacts our financial outlook for the year.

接下來，我會將電話轉交給傑夫，他將向您介紹這將如何影響我們今年的財務前景。

Thanks, Beth, and good afternoon, everyone. As Beth mentioned, we're pleased to report a quarter where we continue to successfully drive our strategic initiatives, innovate, meet our top line expectations and far exceed our profitability expectations even in the face of industry headwinds.

謝謝貝絲，大家下午好。正如貝絲所提到的，我們很高興地報告本季度的情況，即使面對行業逆風，我們仍繼續成功推動我們的戰略舉措、創新、滿足我們的營收預期並遠遠超出我們的盈利預期。

Let me take you through the details. Q2 net sales were $105.4 million, a decline of 4% year-over-year, which was within our guidance range. We drove a 4% increase in total orders year over year. We also had another quarter of strong repeat order growth, driving 17% growth in repeat orders year over year.

讓我帶您了解詳細資訊。第二季淨銷售額為 1.054 億美元，年減 4%，在我們的指導範圍內。我們的訂單總量年增了 4%。我們的重複訂單又強勁成長，帶動重複訂單年增 17%。

This performance demonstrates the effectiveness of our customer acquisition and retention efforts, including the resonance of our brand with consumers as well as strong performance across our products.

這項業績證明了我們在獲取和保留客戶方面所做的努力的有效性，包括我們的品牌與消費者的共鳴以及我們產品的強勁表現。

Average order value or AOV declined 8% year over year as we continue to broaden and diversify our overall assortment including in our fine jewelry collection, which, as has lower price points and engagement rates. We saw strength in average selling price or ASP across our product collections.

平均訂單價值或 AOV 同比下降 8%，因為我們繼續擴大我們的整體品種並使其多樣化，包括我們的高級珠寶系列，其價格點和參與率也較低。我們看到了我們產品系列的平均售價或平均售價的成長。

The ASP for our engagement rings, wedding rings and fine jewelry increased year-over-year in Q2 as they did in Q1, highlighting our success in maintaining our premium brands position. Q2 gross margin was 60.8%, which is a 320 basis points expansion over Q2 last year, principally driven by our premium brand and proprietary products, our price optimization engine procurement efficiencies and our enhanced extended warranty program.

與第一季一樣，我們的訂婚戒指、結婚戒指和高級珠寶的平均售價在第二季度同比增長，凸顯了我們在保持優質品牌地位方面所取得的成功。第二季毛利率為 60.8%，比去年第二季成長 320 個基點，主要得益於我們的優質品牌和專有產品、價格優化引擎採購效率以及增強的延長保固計畫。

This gross margin strength is particularly rewarding as we maintain our focus on our premium brand positioning in an environment where others continue to lean into discounting. We delivered a Q2 adjusted EBITDA of $5.5 million or a 5.2% adjusted EBITDA margin exceeding our guidance range.

這種毛利率優勢尤其值得回報，因為在其他人繼續傾向於打折的環境中，我們仍然專注於我們的高端品牌定位。我們第二季調整後 EBITDA 為 550 萬美元，調整後 EBITDA 利潤率為 5.2%，超出了我們的指導範圍。

Our strong gross margin performance together with prudent management of our marketing spend and other operating expenses contributed to our strong profitability results this quarter. Q2 SG&A was 59.7% of net sales compared to 56.4% of net sales in Q2 2023 as we continue to balance making investments to drive long-term growth with disciplined expense management to deliver profitability.

我們強勁的毛利率表現以及對行銷支出和其他營運費用的審慎管理促成了本季強勁的獲利業績。第二季的銷售管理費用佔淨銷售額的 59.7%，而 2023 年第二季佔淨銷售額的 56.4%，因為我們繼續在投資推動長期成長與嚴格的費用管理以實現盈利之間取得平衡。

Q2 adjusted SG&A was 55.7% of net sales compared to 50.6% of net sales in Q2 2023. Adjusted SG&A does not include items such as equity-based compensation, depreciation and amortization, showroom, preopening expenses and other nonrecurring expenses. The principal driver of the year-over-year increase in adjusted SG&A in Q2 was from growth in showroom expenses, including the annualization of expenses related to showrooms opened last.

第二季調整後的 SG&A 佔淨銷售額的 55.7%，而 2023 年第二季則佔淨銷售額的 50.6%。調整後的銷售及管理費用不包括股權薪酬、折舊及攤提、陳列室、開業前費用及其他非經常性費用等項目。第二季調整後的銷售及管理費用較去年同期成長的主要驅動因素是展廳費用的成長，包括與最後開幕的展廳相關的費用的年化。

Yes, for Q2 marketing expenses, we continued our approach from last quarter, maintaining a disciplined approach to our second quarter marketing spend, resulting in a slight leverage of approximately 20 basis points as a percentage of net sales compared to Q2 last year.

是的，對於第二季度的營銷支出，我們延續了上季度的做法，對第二季度的營銷支出保持嚴格的態度，與去年第二季度相比，佔淨銷售額的百分比略有上升約20個基點。

We continue to make strategic investments to drive brand awareness and support key initiatives such as growth in fine jewelry, balanced with capturing marketing efficiencies while maintaining overall profitability.

我們持續進行策略性投資，以提高品牌知名度並支持高級珠寶成長等關鍵舉措，同時在維持整體獲利能力的同時提高行銷效率。

As I pointed out during our last two earnings calls, we are aiming to keep quarterly marketing spend for the year at a similar percentage of net sales compared to the 2023 average in Q2, aligned with our expectation of still delivering net sales within our guide for the second quarter.

正如我在過去兩次財報電話會議中指出的那樣，我們的目標是將今年季度行銷支出保持在與2023 年第二季度平均水平相似的淨銷售額百分比，這與我們仍將淨銷售額保持在我們的指引範圍內的預期一致。

Employee cost as a percentage of net sales were higher by approximately 310 basis points as adjusted year over year, principally driven by new showroom employees, including the annualization of employees in our new showrooms. We continue to manage these expenses in a disciplined and responsible manner.

經調整後，員工成本佔淨銷售額的百分比年增約 310 個基點，這主要是由新展廳員工推動的，包括新展廳員工的年化。我們繼續以嚴格、負責任的方式管理這些費用。

Other G&A as a percentage of net sales increased by approximately 220 basis points as adjusted year over year as we continue to prudently invest in our business. This includes increased rents and showroom expenses. Other costs to support our growth and investments in technology, our data-driven, capital-efficient and inventory light operating model continues to provide competitive advantages.

隨著我們繼續謹慎地投資於我們的業務，其他一般及行政費用佔淨銷售額的百分比經調整後同比增長約 220 個基點。這包括增加的租金和陳列室費用。支援我們成長和技術投資的其他成本，我們的數據驅動、資本效率和輕庫存營運模式持續提供競爭優勢。

We were able to leverage this model to decrease our year-over-year inventory by 3% despite the expansion of our showroom footprint and our significant growth in fine jewelry. Our low risk, agile inventory model and strong balance sheet continue to differentiate us from the rest of the industry.

儘管我們的展廳面積擴大且高級珠寶業務顯著增長，但我們仍能夠利用此模型將庫存同比減少 3%。我們的低風險、靈活的庫存模式和強大的資產負債表繼續使我們在行業中脫穎而出。

We ended the second quarter with approximately $152 million in cash, which reflects a year-over-year increase of approximately $2.6 million even after expanding our showroom footprint by 15% and paying down over $3 million in principal balance on our term loan. Our ability to generate cash further differentiates us from many others in the industry and highlights the benefits of our asset-light data-driven business model.

在第二季結束時，我們擁有約 1.52 億美元的現金，即使在將展廳面積擴大了 15% 並償還了超過 300 萬美元的定期貸款本金餘額後，仍同比增加了約 260 萬美元。我們產生現金的能力進一步使我們與業內許多其他公司區分開來，並凸顯了我們輕資產、數據驅動的業務模式的優勢。

In addition, we continue to maintain a strong balance sheet with no net debt. Our financial strength allows us to continue to make prudent investments in the business to drive long-term growth. In Q2, we repurchased approximately $160,000 of our common stock. This takes our total common stock repurchased to approximately $260,000 in total to date.

此外，我們繼續保持強勁的資產負債表，沒有淨債務。我們的財務實力使我們能夠繼續對業務進行審慎投資，以推動長期成長。第二季度，我們回購了約 16 萬美元的普通股。這使得我們迄今為止回購的普通股總額達到約 26 萬美元。

Our strong balance sheet provides the ability to strategically seize value creation opportunities, including when we see an opportunity to buy back our common stock. We intend to continue using this program strategically while balancing our overall investment decisions, including consideration of factors such as trading volumes and our public float.

我們強大的資產負債表使我們能夠策略性地抓住價值創造機會，包括當我們看到回購普通股的機會時。我們打算繼續策略性地使用該計劃，同時平衡我們的整體投資決策，包括考慮交易量和公眾持股等因素。

As we look ahead to the second half, we are seeing a weaker than expected consumer environment and headwinds in bridal and e-commerce that are somewhat greater than what we observed earlier in the year. For Q3, we have had a softer start indication range while continuing to have solid growth in fine jewelry and wedding and anniversary day. We also continue to see strong repeat purchase behavior.

展望下半年，我們看到消費環境弱於預期，婚禮和電子商務面臨的阻力比我們今年早些時候觀察到的要大一些。第三季度，我們的指示範圍開始較軟，但高級珠寶、婚禮和週年紀念日業務繼續穩步增長。我們也持續看到強勁的重複購買行為。

For Q3, we expect net sales to be down 11% to 14% year over year. In light of current market conditions, we expect Q3 adjusted EBITDA margin to be from breakeven to low single digits as a percentage of net sales as we dynamically manage operating expenses, including marketing spend to deliver profitability while making strategic investments in the business for the long term.

對於第三季度，我們預計淨銷售額將年減 11% 至 14%。鑑於目前的市場狀況，我們預計第三季調整後的EBITDA 利潤率佔淨銷售額的百分比將從盈虧平衡降至低個位數，因為我們動態管理營運費用，包括行銷支出以實現盈利，同時對業務進行長期策略投資學期。

We do expect that Q4 will be a stronger quarter than Q3 from a top line perspective, even though we do anticipate some headwinds in bridal and e-commerce in the fourth quarter. As we have discussed previously, we expect that engagements will continue on a gradual path to normalization.

我們確實預計，從營收角度來看，第四季將比第三季表現強勁，儘管我們確實預計第四季的婚禮和電子商務會遇到一些阻力。正如我們之前所討論的，我們預期接觸將繼續逐步走向正常化。

We also expect other key drivers of Q4 performance will include realizing uplift from our showrooms. The continued strong performance of fine jewelry, the fact that seasonally Q4 is the biggest quarter for fine jewelry sales and our ongoing brand building efforts, including during the holidays for the year, we now expect that our net sales will be in the range of $410 million to $425 million.

我們也預計第四季度業績的其他關鍵驅動因素將包括實現我們展廳的提升。高級珠寶的持續強勁表現，第四季度是高級珠寶銷售最大的季度，以及我們持續的品牌建設工作（包括今年的假期期間），我們現在預計我們的淨銷售額將在 410 美元範圍內百萬至4.25 億美元。

Our adjusted EBITDA will be in the range of $12 million to $16 million as we continue to manage the business for profitability, even in the face of industry headwinds.

即使面對產業逆風，我們仍將繼續管理業務以實現盈利，調整後的 EBITDA 將在 1,200 萬至 1,600 萬美元之間。

In closing, our premium brand and differentiated business model, including our data-driven decision making seamless omnichannel platform and asset-light structure demonstrate our ability to deliver profitability and achieve our strategic and financial objectives in a variety of different environments.

最後，我們的優質品牌和差異化業務模式，包括我們的數據驅動決策無縫全通路平台和輕資產結構，證明了我們在各種不同環境下實現盈利並實現戰略和財務目標的能力。

Our performance in the second quarter reinforces our ability to execute and capitalize on the opportunities to drive long-term, sustainable and profitable growth.

我們第二季的業績增強了我們執行和利用機會來推動長期、可持續和獲利成長的能力。

With that, I'll turn the call back over to the operator for questions.

這樣，我會將電話轉回給接線生詢問問題。

(Operator Instructions) Oliver Chen, TD Cowen.

（操作員說明）Oliver Chen，TD Cowen。

Hey, Beth and Jeff. This is Tom on for Oliver. Would be great if you could talk about the nature of bridal comparisons ahead and any opportunities for share growth. I'm just curious as to what gives you confidence in this multiyear recovery path.

嘿，貝絲和傑夫。這是奧利佛的湯姆。如果您能談談未來新娘比較的性質以及任何份額增長的機會，那就太好了。我只是好奇是什麼讓您對這條多年恢復之路充滿信心。

Great. Hi, Tom. Thanks for the question. So just to provide a little bit more context in Brilliant. In Q2, what we saw was that Brilliant was down in the low double digits, and we have seen that slightly worsen since then. And we do have some really nice positive indicators. One of the metrics that I mentioned was around our Signature Collection.

偉大的。嗨，湯姆。謝謝你的提問。所以只是為了在 Brilliant 中提供更多的背景資訊。在第二季度，我們看到 Brilliant 的跌幅為兩位數，從那時起我們看到情況略有惡化。我們確實有一些非常好的正面指標。我提到的指標之一是圍繞著我們的簽名收藏。

We just had a really great campaign promoting the distinctive design that has really been a pillar of our brand for the majority of our existence, and that has had really nice growth. We saw 6% year-over-year growth in signature. We've also seen nice growth within our showrooms.

我們剛剛舉辦了一場非常出色的活動，宣傳獨特的設計，這確實是我們品牌存在的大部分時間的支柱，並且取得了非常好的成長。我們看到簽名數量年增 6%。我們的陳列室也看到了良好的成長。

So that plus 9% for engagement rings for customers who have visited a showroom just gives us a lot of conviction in the omnichannel model that we have. What we've seen recently is as the demand has become more soft, we've seen one of the most promotional environments that we've experienced and our approach is to not chase unprofitable growth.

因此，對於參觀過陳列室的客戶來說，訂婚戒指加 9% 的折扣讓我們對我們的全通路模式充滿信心。我們最近看到的是，隨著需求變得更加疲軟，我們看到了我們經歷過的最具促銷性的環境之一，我們的方法是不追逐無利可圖的成長。

We want to make sure we're growing in a healthy and sustainable way. So we're really thinking about how do we drive marketing leverage and how do we invest outside of bridal where we've been incredibly strong with our fine jewelry, our wedding, our anniversary Barron's collection as well.

我們希望確保我們以健康和永續的方式發展。因此，我們真正在考慮如何推動行銷槓桿，以及如何在婚禮之外進行投資，在婚禮之外，我們在高級珠寶、婚禮、週年紀念巴倫系列等方面都表現出色。

So it's really taking a more diversified approach as we've been doing really since we've started these calls and seeing a lot of success there in attracting new and repeat customers.

因此，它確實採取了更加多元化的方法，正如我們自從開始這些電話以來一直在做的那樣，並在吸引新客戶和回頭客方面取得了巨大的成功。

Great. Thanks. And then a follow-up on the strength. You're seeing across income cohorts and how that informs your approach to price in the future? And then additionally, I'm curious as to how Brilliant is leveraging customer data platform to come. You create new styles and proprietary designs that resonate well in this environment?

偉大的。謝謝。然後是後續的實力。您正在觀察各個收入群體的情況，這對您未來的定價方法有什麼影響？另外，我很好奇 Brilliant 將如何利用未來的客戶數據平台。您創造了在這種環境下能產生良好共鳴的新風格和專有設計嗎？

Yes, absolutely. So maybe I can start a little bit with our how we think about price. And I think you've heard us mention in the past that we have a pretty sophisticated pricing engine, which is quite dynamic across different parts of the assortment. We're constantly optimizing for margin and that allows us to capture demand as we see it across different price points.

是的，絕對是。所以也許我可以先談談我們對價格的看法。我想您過去曾聽我們提到過，我們有一個相當複雜的定價引擎，在產品類別的不同部分非常動態。我們不斷優化利潤率，這使我們能夠捕捉不同價格點的需求。

So that I would just say that that's ongoing activity and something we're continuing to invest in. And as we see parts of the assortment perform even better than we're able to introduce new designs very quickly. So part of our competitive advantage is that product design and differentiation and the ability to launch products really quickly leverage the customer data that we have and make sure that across different price points that we have a very productive collection.

所以我只想說，這是一項持續的活動，也是我們繼續投資的項目。正如我們所看到的，部分產品系列的表現甚至比我們能夠非常快速地推出新設計還要好。因此，我們的部分競爭優勢在於，產品設計和差異化以及推出產品的能力能夠真正快速地利用我們擁有的客戶數據，並確保我們在不同的價位上擁有非常高效的產品系列。

So we're not aiming to have an endless collection. We really want to make sure it's curated its trend forward. And I think that's part of how we've been able to be so successful in fine jewelry is marrying that with our brand initiatives to appeal to our customer base.

所以我們的目標並不是擁有無窮無盡的收藏。我們確實希望確保它能夠推動其發展趨勢。我認為，我們之所以能夠在高級珠寶領域取得如此成功，部分原因在於將其與我們的品牌舉措相結合，以吸引我們的客戶群。

Thank you very much.

非常感謝。

(Operator Instructions) Ashley Owens, KeyBanc Capital Markets.

（操作員說明）Ashley Owens，KeyBanc 資本市場。

Hi, good afternoon. So just from the start, you know, you mentioned the highly considered purchases of some of the rationale contributing to ongoing softness in the jewelry industry vitals, obviously still in a period of normalization. I guess of that. Just curious if you're seeing people elongating their decision time for making these purchases are also anything that you can maybe update or share on engagement trends that you're seeing?

嗨，下午好。因此，從一開始，您就提到了經過深思熟慮的購買，這是導致珠寶業生命體持續疲軟的一些原因，顯然仍處於正常化時期。我猜是這樣的只是好奇您是否看到人們延長了購買這些商品的決策時間，您是否可以更新或分享您所看到的參與趨勢？

Yes, absolutely. So what I would say is we're still seeing really nice traffic and across all of our channels. I think we are seeing though, overall that customers are just being a little bit more hesitant and that decision time is being elongated. So I think that is something that we're seeing.

是的，絕對是。所以我想說的是，我們在所有管道上仍然看到非常好的流量。但我認為我們看到，總體而言，客戶只是有點猶豫，決策時間正在延長。所以我認為這就是我們所看到的。

The consumer environment has slowed down a little bit as it's been more uncertainty and whether that's materializing is across our across that more considered purchase.

由於不確定性增加，消費者環境已經放緩了一點，而這種情況是否會實現取決於我們經過深思熟慮的購買。

Okay, got you. And then just quickly rate of gross margin, obviously another solid quarter of progress here starting to hover around that 60% range in 2Q did come above that, which is above the range you highlighted for the medium-term long term. Just curious if your thoughts have changed there at all? Or should we still be thinking of kind of that high-50s kind of level going forward?

好的，明白了。然後，毛利率很快就明顯高於第二季的 60% 範圍，這顯然高於您強調的中長期範圍。只是好奇你的想法有沒有改變？或者我們仍然應該考慮未來 50 年代的那種水平？

Sure. I can speak to that. So as you point out in or our mid-term medium term outlook, we have highlighted that high-50s percent as our gross margin gross margin target. And I think, Ed, as you know, that's there. There's always a dynamic balancing of how we're thinking about things with the price optimization engine to drive that right combination of top line growth and capturing gross margin percentage with the ultimate goal to drive as many gross profit.

當然。我可以談談。因此，正如您在我們的中期展望中指出的那樣，我們強調將 50% 高的毛利率作為我們的毛利率目標。我想，艾德，正如你所知，就在那裡。我們如何利用價格優化引擎思考問題，始終保持動態平衡，以推動營收成長和獲取毛利率百分比的正確組合，最終目標是推動盡可能多的毛利。

So as we can, we were pleased to see an outperformance in in the 60s this past quarter. I think our medium-term outlook still does point to a gross margin expectation in that high-50s percentage of sales. And we're always going to be dynamically balancing and looking at the data that we're seeing from consumer preferences, input costs, market conditions and things like that to drive that to drive that right combination.

因此，我們很高興看到上個季度 60 年代的出色表現。我認為我們的中期前景仍然表明毛利率預期在銷售額中所佔的比例高達 50%。我們總是會動態平衡並查看我們從消費者偏好、投入成本、市場狀況等方面看到的數據，以推動正確的組合。

So the medium term, it hasn't changed. We're glad to see the performance that we did in Q2. And we'll continue, as we always have been to be agile and dynamic.

所以從中期來看，它沒有改變。我們很高興看到第二季的表現。我們將繼續保持敏捷和活力，一如既往。

Great. I'll pass it over --

偉大的。我會把它傳過去--

Dylan Carden, William Blair.

迪倫卡登，威廉布萊爾。

I'm just wondering if you have a read on ASP, kind of the engagement origination I guess people getting engaged broadly, how that's trending now and as of that relates to your business and then one question. We get a lot increasingly and funny to see constant headlines about or just diamond prices, both lab and natural. Is that is that kind of code for what you mean by promotional or how does that show up in your business?

我只是想知道您是否讀過 ASP，我想人們廣泛參與的參與起源，現在的趨勢如何以及與您的業務的關係，然後是一個問題。我們越來越多地看到有關實驗室和天然鑽石價格的頭條新聞，也很有趣。這就是您所說的促銷代碼嗎？

I guess, but prices may be more in line with historical rates, but they certainly come in dramatically over the last two years. And just I know you have dynamic just-in-time premier home inventory model, but how that might play into your business if you're holding price and the industry's quoting around you anything? Any color there would be very helpful. Thank you.

我猜，但價格可能更符合歷史價格，但在過去兩年價格肯定大幅上漲。我只知道您擁有動態的即時首要房屋庫存模型，但是如果您保持價格並且行業對您周圍的任何東西進行報價，這可能會對您的業務產生什麼影響？任何顏色都會非常有幫助。謝謝。

Sure, so I can start with just our read on engagement. And we've talked about this multiyear path to normalization coming off of these elevated peaks over '21, '22. So I still think we're in a normalizing situation. I think that's exacerbated by just some of the consumer headwinds in terms of the overall environment for highly considered purchases.

當然，所以我可以從我們對參與度的解讀開始。我們已經討論了從 21 年、22 年這些高峰中走出來的多年正常化之路。所以我仍然認為我們處於正常化的狀態。我認為，就深思熟慮的購買的整體環境而言，一些消費者面臨的不利因素會加劇這種情況。

And I think that is it's just causing more consumers to hold off and be a little bit more cautious overall as they're thinking about the engagement occasion. So I'd that's probably the most that I can say about that, you know, as it relates to how we think about pricing, what's important to note is in Q2, we're coming off of our second consecutive quarter start our second quarter of ASP increases.

我認為這只是導致更多消費者在考慮訂婚場合時猶豫不決，總體上更加謹慎。因此，這可能是我能說的最多的了，你知道，因為這與我們如何看待定價有關，值得注意的是，在第二季度，我們將連續第二個季度結束，從第二季度開始平均售價增加。

So we're continuing to see prices on for consumers increase in the bridal selection that we have. And in addition to that we are we are making sure that we are reinforcing the premium brand positioning. We think that we are leaders in this space as it relates to sustainability and innovation just generally.

因此，我們繼續看到消費者在新娘選擇上的價格上漲。除此之外，我們正在確保加強優質品牌定位。我們認為我們是這個領域的領導者，因為它與永續性和創新息息相關。

And we are, I think, as a result, making sure that we're optimizing in terms of margin. So we do have a dynamic pricing algorithm. We're constantly making sure that we are adjusting to market conditions, but we're also considering our overall Brilliant position, and that's across both lab and natural. And it's important to us that as customers are shopping for budget that they shop for Brilliant first, and that's really what we're leading with.

我認為，因此，我們要確保我們在利潤方面進行最佳化。所以我們確實有一個動態定價演算法。我們不斷確保我們正在適應市場條件，但我們也在考慮我們的整體卓越地位，無論是在實驗室還是在自然領域。對我們來說重要的是，當顧客在購買預算時，他們首先購買 Brilliant，這正是我們所倡導的。

So I guess that's kind of the underlying question. I'm just trying to unpack the term promotional. I mean, as you're seeing prices come in and you maintain margin in ASP, do you think that that's hurting you in the consideration and maybe we'll put that in the short term. But is that is that part of this right now?

所以我想這是一個潛在的問題。我只是想解釋一下促銷這個詞。我的意思是，當您看到價格上漲並且維持平均售價的利潤時，您是否認為這會損害您的考慮，也許我們會在短期內考慮這一點。但這是現在的一部分嗎？

And even when we talk about promotion, we're also talking about just heavy discounting. So you're seeing 10%, 20%, 30% off that, that's the type of discounting that we're seeing, which is much heavier than what we're typically what we've typically observed in the past. So for us, it's really about how do we now used pricing as a lever to make sure we're maintaining margin, but also considering that we're a premium brand look.

即使當我們談論促銷時，我們也談論的是大幅折扣。所以你會看到 10%、20%、30% 的折扣，這就是我們看到的折扣類型，這比我們過去通常觀察到的折扣要大得多。因此，對我們來說，真正重要的是我們現在如何使用定價作為槓桿來確保我們維持利潤，但同時也要考慮到我們是一個高端品牌。

Thank you.

謝謝。

Thanks.

謝謝。

And this does conclude the question and answer session of today's program. I'd like to hand the program back to Beth Gerstein, CEO for any further remarks.

今天節目的問答環節到此結束。我想將該程式交還給執行長貝絲·格斯坦 (Beth Gerstein)，以供進一步評論。

Great will thank you all for joining us for our Q2 call our earnings call. Look forward to talking to you all and in the next quarter.

非常感謝大家參加我們的第二季財報電話會議。期待下個季度與大家交談。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。