What caused BRLT's Q2 2024 EPS to miss expectations?

Brilliant Earth Group's (BRLT) Q2 2024 EPS missed expectations due to a combination of factors:

1. Revenue Decline: Although total revenue for Q2 2024 was $105.43 million, which is within the company's guidance range, there was a year-over-year net sales decline of 4%. This decline contributed to the lower-than-expected earnings.

BRLT Total Revenue YoY, Total Revenue

2. Expense Factors: The company's gross margin was 60.8%, which is a 320 basis point increase from the previous year. However, the increase in gross margin did not fully offset the impact of lower revenue and other expenses. The company's CFO, Jeffrey Chuenhong Kuo, sold 8,119 shares in a transaction on May 17th, 2024, at an average price of $2.43, totaling $19,729.17. Such insider transactions can influence investor perceptions and may indicate a lack of confidence in the company's short-term prospects.
3. Market Conditions: The jewelry industry, including fine jewelry, is sensitive to economic conditions and consumer sentiment. Any downturn in the economy or changes in consumer spending habits can negatively impact sales and, consequently, earnings.

In summary, BRLT's Q2 2024 EPS missed expectations due to a combination of revenue decline, expense factors, and market conditions.