Brilliant Earth, which manufactures and retailers customizable bridal jewelry, successfully launched its initial public offering (IPO) on NASDAQ, with its share price rising 43% from US $ 12 to $ 17.16 US, the first trading day.
Prior to listing, the company had reduced its opening price range from US $ 14-16 per share to US $ 12 per share, and halved the number of available shares from 16.7 million to 8.3 millions.
Brilliant Earth was founded in 2005 by Stanford Business School graduates Beth Gerstein and Eric Grossberg, who had no background in the jewelry industry, following the disappointing purchase of an engagement ring by Gerstein.
The company’s business model is based on simplifying the process of buying bridal jewelry, with its founders criticizing traditional jewelers for “opaque sourcing practices and impersonal shopping experiences.”
Brilliant Earth offers customizable engagement rings designed through a digital “Create Your Own” interface. Its products are set with diamonds sourced from what the company claims to be a rigorously documented supply chain held to a higher standard than the Kimberley Process.
It also offers the possibility of using diamonds created and recycled in the laboratory in bridal jewelry.
According to the American financial publication Forbes, Brilliant Earth has served approximately 370,000 customers; it posted sales of $ 251.8 million in 2020, an increase of 25% from 2019, and profits of $ 21.6 million.
In the first six months of 2021, its revenue doubled compared to the same period in 2020, reaching $ 163 million.
“Last year was a real turning point for us and now with the IPO it continues,” said Gerstein. Forbes.
Although largely an e-commerce business, Brilliant Earth also operates 14 showrooms in the United States, and Gerstein said, “Omnichannel is a winning model for us. Customers like to have more than one way to interact. Some may feel comfortable buying entirely online, while others enjoy viewing the product.
In the 12 months after opening a showroom, Brilliant Earth reportedly saw an average 80% increase in revenue in the region.
Although its physical presence is limited to the United States, Brilliant Earth currently offers international shipments to a number of countries, including Australia.
Commenting on the Brilliant Earth IPO, Marty Hurwitz, CEO of the jewelry, watch and gemstone market research consultancy, The MVEye – formerly MVI Marketing – said Forbes, “Traditionally, investors and private equity [firms] were not interested in jewelry as it did not match their P / E [price-to-earnings] models. Today, they take a critical look at jewelry, not because the jewelry space conforms to their models, but because their models change.
“This is just the start of a lot more investment in the jewelry space.”
Indeed, there are relatively few publicly traded jewelry companies, the largest in the United States being Signet Jewelers (priced at US $ 84.48 at time of publication) – the parent company of the major retail chains. Zales, Kay Jewelers and Jared and online retailer JamesAllen.com – lab-created diamond and moissanite jewelry company Charles & Colvard (share price US $ 3.02) and Canadian jewelry retailer Birks Group (share price US $ 2.75).
Prior to its acquisition by French luxury conglomerate Moët Hennessy Louis Vuitton in January 2021, Tiffany & Co. was listed on the New York Stock Exchange.
Pandora Jewelry is listed on NASDAQ Copenhagen and, at the time of posting, was trading at DKK808.
Locally, Michael Hill International (AU $ 0.86 share price) and Lovisa (AU $ 19.77 share price) are the largest publicly traded jewelry companies on the Australian Securities Exchange.
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