Brilliant Earth Downgraded Amid Persistent Challenges in the Engagement Jewelry Market

Telsey analysts downgraded Brilliant Earth Group (NASDAQ:BRLT) from Outperform to Market Perform, accompanied by a lowered price target of $2.00, down from $3.00. The revision reflects ongoing struggles in the engagement jewelry segment and broader market challenges.

While the company has maintained a strong brand presence, its performance has been inconsistent over the past year due to a promotional and competitive jewelry market. The engagement segment, a critical category for Brilliant Earth, has seen slower-than-expected normalization, dampening hopes for a swift recovery.

The analysts highlighted that younger consumers, a key demographic for engagement purchases, continue to face inflationary pressures and economic uncertainty, further delaying a rebound in demand. With prolonged market corrections and limited visibility into improvement in this vital category, the downgrade underscores caution in the near-term outlook for the company.