Fashion retailer Revolve Group ended last year on a high note, achieving double-digit top-line growth. 

Founder and CEO Michael Mente credited the results to improved marketing and logistics, reduced return rates, expanded product assortment, and enhanced site navigation.

The company’s total net sales for the fourth quarter ending December 31 last year were $293.7 million, up 14 per cent year-over-year, marking an improvement from the 10 per cent growth reported in the third quarter.

Gross profit grew by 15 per cent to $154.3 million, with gross margin increasing to 52.5 per cent, driven primarily by margin expansion in the FWRD segment.

The company also reported efficiencies in marketing, fulfilment, and selling and distribution expenses, contributing to improved operating expense leverage year-over-year.

Net income surged by 237 per cent to $11.8 million, fueled by strong sales growth, margin expansion, better expense management, and a lower effective tax rate. 

Meanwhile, adjusted EBITDA more than doubled to $18.3 million, reflecting a 114 per cent increase year-over-year. The company also experienced double-digit net sales growth across all segments and geographies.

Revolve segment net sales rose by 15 per cent to $252.0 million, while FWRD segment net sales increased by 11 per cent to $41.8 million. Domestic net sales grew by 11 per cent to $236.6 million, and international net sales jumped 29 per cent to $57.1 million.

Looking ahead, Mente said the company is focused on expanding its owned brands, deploying AI technology, and exploring opportunities in physical retail.

“The team performed exceptionally this year,” he concluded.

Revolve Group’s brands include Lovers and Friends, FRWD, Grlfrnd, NBD, Camila Coelho, Alexandre Vauthier, and House of Harlow 1960.