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Brilliant Earth Group, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $99.9 million from $114.2 million in the same quarter the previous year. The decrease is attributed to a reduction in average order value.
Cost of sales for the quarter was $39.1 million, representing 39.2% of net sales, compared to 41.5% in the same quarter of the previous year. This decrease in cost ratio is due to procurement efficiencies and benefits from the extended warranty program.
The company reported a gross profit of $60.8 million for the quarter, compared to $66.8 million in the previous year, with the decline attributed to reduced sales.
Selling, general, and administrative expenses decreased to $61.8 million from $64.8 million, primarily due to a reduction in marketing expenses.
Net loss for the quarter was $1.1 million, down from a net income of $2.0 million in the previous year. The loss is attributed to lower sales and increased operating expenses.
Cash provided by operating activities was $3.5 million, while cash used in investing and financing activities was $2.7 million and $3.9 million, respectively.
Brilliant Earth had a working capital of ($22.3) million as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a credit agreement with Silicon Valley Bank (SIVB).
Brilliant Earth does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to ineffective information technology general controls.
Brilliant Earth continues to focus on expanding its omnichannel presence and enhancing its product offerings to drive future growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Brilliant Earth Group Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.