Why did BRLT's Q4 2024 EPS outperform forecasts?

Brilliant Earth's Q4 2024 EPS outperformed forecasts due to a combination of factors:

1. **Revenue Growth**: Despite a 4% year-over-year decline in net sales, the company's revenue for the quarter was $119.5 million, which surpassed the consensus estimate of $116.84 million. This was driven by strong order growth, with total orders increasing by 10% year-over-year in Q4 and 7% in 2024. Repeat orders saw a significant 18% increase in Q4 and 17% increase in 2024, contributing to the revenue outperformance.
2. **Gross Margin Expansion**: Brilliant Earth expanded its gross margin by 90 basis points to 59.6% in Q4 compared to the same period last year. This improvement was due to pricing optimization and procurement efficiencies, which allowed the company to maintain profitability despite the decline in average order value.
3. **Cost Management**: The company's cost of sales was $167.8 million, representing 39.7% of sales, compared to 42.4% in the previous year. This decrease in cost ratio was a result of effective pricing strategies and improved procurement efficiencies.
4. **Strategic Initiatives**: Brilliant Earth's focus on technological integration, such as dynamic product visualization and augmented reality try-on, supported data-driven marketing and operational efficiencies. These initiatives likely contributed to the company's ability to exceed earnings expectations.

In summary, Brilliant Earth's Q4 2024 EPS outperformance can be attributed to strong revenue growth, gross margin expansion, effective cost management, and strategic initiatives that boosted operational efficiency.