Fashion retailer Revolve Group saw its third-quarter sales grow by 20 per cent. Co-founder and co-CEO Michael Mente credited this growth to a larger customer base.
For the three months ended September 30, the group’s net sales reached $356 million. The number of active customers over the past 12 months rose 18 per cent year-over-year to 3.24 million, marking the company’s highest annual growth rate in three and a half years.
Total orders increased 19 per cent compared with the same period last year, while a lower product return rate also contributed to sales growth. These gains were partly offset by a decline in average order value, mainly due to initial sales of Grow-Good beauty products at lower price points.
“We believe our strong top-line growth and customer engagement metrics reflect the strength of our brands and the results of our investments in brand building and physical retail expansion,” said Mente.
He pointed to several recent initiatives, including key partnerships, the launch of Revolve Los Angeles and the retailer’s inaugural Revolve Magazine.
The company also established a joint venture with Donatella Versace and expanded its partnerships with Kendall Jenner and Dwyane Wade.
The Revolve segment generated net sales of $306.8 million, up 20 per cent year over year, while its luxury fashion platform Fwrd also recorded 20 per cent growth to $49.2 million.
Domestic sales increased 20 per cent to $277.4 million, while international sales grew 22 per cent to $78.6 million.
Gross profit rose 19 per cent to $191.8 million. However, net income declined to $15.5 million from $21.2 million in the prior-year quarter. The earlier result included a $4.5 million insurance recovery, equivalent to approximately $3.4 million after taxes.
“We couldn’t be happier with our momentum, and we are excited about our progress on longer-term investments that we believe strengthen our foundation for future profitable growth,” Mente said.
- Further reading: Revolve Group reaps benefits from improved marketing, logistics.
