Brilliant Future AB

Good day, and thank you for standing by. Welcome to the Brilliant Earth first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Colin Borland. You may now begin.

Welcome to the Brilliant Earth First Quarter 2025 Earnings Conference Call. My name is Colin Borland, Vice President of Strategy, Business Development, and Investor Relations. Joining me today are Beth Gerstein, our Chief Executive Officer, and Jeff Kuo, our Chief Financial Officer. During the call today, management will make certain forward-looking statements within the meeting 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. These forward-looking statements reflect our opinion only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events unless required by law. Also, during this call, management will refer to certain non-GAAP financial measures, a reconciliation of Brilliant Earths non-GAAP measures to the comparable GAAP measures is available in today's earnings release, which can be found on the Brilliant Earth Investment Relations website. I'll now turn the call over to Beth.

Good morning, everyone, and thank you for joining us today. I'm pleased to share that we delivered another quarter of solid performance within our guidance, marking our 15th consecutive quarter of profitability as a public company. For the first quarter, we delivered net sales of $93.9 million, which was within our stated guidance range and represented a 3.5% decline year over year. We saw encouraging trends in our business with total orders growing 12% year over year and repeat orders growing 13% year over year as our premium brand, seamless omni-channel experience, and differentiated product offerings continue to resonate with both new and existing customers. I'm proud to report that we achieved an adjusted EBITDA of $1.1 million in Q1, representing a 1% adjusted EBITDA margin and within our stated guidance range. Our consistent ability to maintain profitability across varying market conditions underscores the strength of our business model and our disciplined approach to managing expenses. Now, let me share some highlights across the business. Starting with engagement rings, we are encouraged to see booking and unit performance improve sequentially over the past few quarters. And in Q1, we saw positive year-over-year unit growth. Additionally, we saw another quarter of comparatively strong growth in engagement rings priced under $5,000. Our signature engagement ring collection continues to contribute meaningfully, with another quarter of year-over-year bookings growth outpacing our total engagement ring collection by double digits. And we are delighted that customers are increasingly drawn to us for our premium, one-of-a-kind products. And our wedding and anniversary band business is strong, driving year-over-year bookings growth with outside success in men's wedding bands as well as women's eternity bands. In fine jewelry, we're making substantial progress on our strategic expansion. As a reminder, our assortment of fine jewelry includes items like earrings, necklaces, bracelets, and fashion rings. Fine jewelry bookings represented 14% of total bookings in Q1, an approximate 350 basis point expansion over Q1 last year. we again saw strong double-digit fine jewelry bookings growth in Q1, far outpacing the industry. Fine jewelry remains one of our key areas of investment and growth drivers for the business, as it allows us to introduce new customers to the Brilliant Earth brand, as well as provide additional purchase opportunities for our repeat customers, whether it's a gift for themselves or others. As we've mentioned before, industry sales overall are a majority fine jewelry, so there is significant headroom for us to expand here. We are pleased with the performance we're seeing so far and remain optimistic about the path ahead. Valentine's Day was particularly successful for us this year. We executed an omnichannel Valentine's Day activation focused on authenticity and connection with our Diamonds on the Menu campaign, resulting in our strongest Valentine's Day period ever. We had our biggest two weeks leading up to Valentine's Day ever, with total bookings up mid to high single digits year-over-year. A major contributor to this growth was our exceptional performance in fine jewelry, with bookings growing over 40% year-over-year in the two-week lead-up period to Valentine's Day. Consumers came to us for everything from our diamond essentials to our on-trend and seasonal collections like our heart and signature collections. and of course, our top-selling Jane Goodall collection. Overall, it is gratifying to see that we are increasingly consumers' go-to jeweler for special occasions. We're delighted to continue to be the brand of choice for many established celebrities, influencers, and emerging content creators. This quarter, we were excited to work with Brook Highland and Kalani Hilliker to create their custom engagement rings, which show remarkable social engagement, generating 6.2 million impressions and strengthening our brand presence and bridal leadership. On the showroom front, we opened our second Dallas Fort Worth location in South Lake, Texas in February, which is already showing promising results. We're on track to open one to two more new showrooms this year, which will include our latest design elements, including enhanced try-on bars with increased fine jewelry capacity. To that point, I'm excited to announce our next location will be in Alpharetta, Georgia, which will expand our reach in the greater Atlanta area and is slated to open in the next few weeks. Looking ahead, in Q2 so far, we are continuing to see increased momentum from previous quarters across total and repeat orders and throughout the assortment, including continued positive growth in engagement ring units. As it relates to tariffs, we are monitoring the evolving situation closely. We feel confident that our geographically diversified supplier base and strong supplier relationships, limited direct exposure to China, our price optimization engine, and agile data-driven team give us a competitive advantage over the industry to navigate changes in any environment. The anticipated impact of tariffs is included in our outlook for the year. which Jeff will walk you through in more detail. I would like to thank the entire Brilliant Earth team for their dedication and amazing contribution to these results. Now, I'll hand it over to Jeff, who will walk through the financials in detail and discuss our outlook for the coming quarter and year.