Brilliant Earth downgraded to Hold from Buy at Jefferies

Jefferies analyst Randal Konik downgraded Brilliant Earth (BRLT) to Hold from Buy with a price target of $1.60, down from $4. The firm says a “storm is brewing” in the U.S. consumer discretionary sector as industry inventories are rising for the first time in two years and about to exceed sales growth. Looking at prior inventory to sales growth cycles over the past 22 years, when inventories exceed sales growth, gross margins compress and stock returns lag, the analyst tells investors in a research note. Jefferies downgraded both Brilliant Earth and Ollie’s Bargain Outlet as a result.