What happened

Jewelry specialist Brilliant Earth (BRLT 3.52%) trounced the market on Friday.

Shares jumped 26% by 11 a.m. EST after the company announced its third-quarter earnings report and issued a new outlook for the full year.

A young person admiring a display of jewelry.

Image source: Getty Images.

So what

Sales rose 33%, the company revealed in an early morning press release. And earnings landed at $4 million, or 4% of revenue. Both metrics outpaced investors' expectations.

The business capitalized on high demand for premium, ethically sourced jewelry products and on shoppers' enthusiasm for online shopping. "We delivered an outstanding third quarter," CEO Beth Gerstein said in a press release, "highlighted by strong performance across our financial metrics."

Now what

Brilliant Earth instituted a new 2021 outlook that implies a strong finish to the year. Sales should land between $366 million and $369 million, management forecast. Heading into the report, most investors were looking for just $357 million of revenue this year.

The company's popular merchandise seems set to attract strong demand over the holiday season. Its improving profit margin and rising average prices, meanwhile, should allow Brilliant Earth to produce solid net income in 2021. Those would be impressive results for a growth stock marking just its first year as a publicly traded company.