Revolve Group sees lower profit as sales edge down

(Source: Revolve/Facebook)

Fashion retailer Revolve Group posted a double-digit decrease in profit for the first quarter after lower sales were recorded across its segments and markets.

For the three months ended March 31, net sales were down 3 per cent to $270.5 million, with both the domestic and international markets posting a 3 per cent decline.

Revolve segment net sales fell 1 per cent to $229.6 million, while FWRD segment net sales plummeted 15 per cent to $41.0 million.

Total orders placed decreased 2 per cent while the average order value rose by 4 per cent. Trailing 12-month active customers grew 5 per cent to more than 2.5 million.  

Net income was $10.9 million, representing a year-over-year decrease of 23 per cent and included an insurance recovery of $2.8 million.

Despite the declines, Revolve co-founder and co-CEO Mike Karanikolas flagged that the company has returned to positive sales growth during the final month of the first quarter and the first month of the second quarter.

“In recent months, we have delivered great progress on drivers of future growth and efficiency, including product category expansion, elevating service levels in international markets, leveraging AI technology, further enhancing our digital merchandising, and efficiently investing in our brands to further strengthen our connection with the next-generation consumer,” Karanikolas added.

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