Revolve Q1 sales down 3% despite lift in active customer numbers

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The first quarter sales figures for Revolve Group came in at $270.6 million, down 3% from the same time last year. Despite an increase in full-price sales throughout the three-month period, this loss was mostly caused by fewer sales at markdown pricing.

Revolve Group’s trailing 12-month active customer base increased to 2,551,000 as of March 31, a 5% year-over-year improvement, despite the total revenue decline.

When broken down by section, sales in the Revolve category fell by 1% to $229.6 million, while sales in the Fwrd segment fell by 15% to $41 million, a far more noticeable drop. Sales in the United States were down 3% to $219.1 million, reflecting the general trend, while sales elsewhere were down 3% to $51.5 million.

A 23% decline from the previous year was reflected in the quarter’s net income of $10.9 million. Among other things, this sum accounted for $2.8 million in insurance reimbursements, or $2.1 million after taxes.

Impressive growth in gross margin and enhanced efficiency in variable logistics costs were highlighted by co-founder and co-CEO Mike Karanikolas while discussing the company’s accomplishments in the quarter. All of these things worked together to make the business very profitable and helped it generate a lot of cash, which improved its balance sheet even more.

Karanikolas was upbeat about the company’s sales performance overall, stating that at the end of the first quarter of 2024 and the beginning of the second quarter, net sales were up year over year again.

The creative direction and governance of Revolve Group have been fortified by recent significant appointments. Marianna Hewitt was named creative director of L’Academie, the company’s in-house label, at the end of February. This further demonstrates Revolve’s dedication to strengthening its leadership group and brand positioning, and it follows Jennifer Baxter Moser’s January appointment to the board of directors.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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