TD Cowen lowers Brilliant Earth’s shares target to $3 After Q4 Results

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On Friday, TD Cowen adjusted its outlook on Brilliant Earth Group Inc (NASDAQ:BRLT), reducing the company’s price target to $3.00 from the previous $3.40. The firm maintained a Market Perform rating on the stock. The adjustment follows the release of the company’s fourth-quarter earnings, which reported earnings per share of 4 cents, surpassing the expected 1 cent. This beat was attributed to improved margins.

Brilliant Earth’s net sales for the quarter were reported at $124 million, a 4% increase, aligning with analyst predictions. The growth was supported by a significant 18% increase in total orders, which compensated for a 12% decrease in average order value (AOV). The change in AOV was primarily due to a higher mix of fine jewelry sales.

The company’s gross margin for the fourth quarter was approximately 59%, which exceeded the anticipated 57%. This result was driven by effective pricing optimization and the brand’s strong market presence. Additionally, the adjusted EBITDA margin for the quarter was 4%, which also outperformed expectations of 2%.

Looking ahead, Brilliant Earth provided a positive outlook, projecting a double-digit percentage increase in adjusted EBITDA margin for the fiscal year 2027. This optimistic forecast suggests a favorable financial trajectory for the company in the coming years.

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