Brilliant Earth downgraded at William Blair on ‘murky’ recovery

William Blair downgraded Brilliant Earth to Market Perform from Outperform, citing the “increasingly murky” outlook for a recovery. Given the lower Q3 guidance, there is seemingly no visibility as to when the company can return to growth, which adds further downside risk to earnings through at least 2024, the analyst tells investors. While allowing that much of the issue is likely macro pressure spreading now into higher-income brackets, the engagement industry “specifically seems to be in a protracted recovery period,” the analyst added.