Revolve Group has reported increases in both its sales and profit for the first quarter ended March 31.

The company’s net sales surged 10 per cent to $296.7 million, while its net income rose 5 per cent to $11.4 million. 

However, gross margin edged down from 52.3 per cent to 52 per cent, reflecting a lower mix of full price sales.

The Revolve business saw an 11 per cent uplift in sales, while FWRD increased 3 per cent. Domestic and international net sales rose 9 per cent and 12 per cent, respectively.

“Our strong execution within a dynamic macro environment resulted in outstanding first quarter results, highlighted by double-digit top-line growth, 57 per cent growth in operating income year-over-year, and $45 million in operating cash flow” said co-founder and co-CEO Mike Karanikolas. 

“We achieved these strong results while continuing to invest in key initiatives that we believe will drive long-term success, which is especially important during this uncertain time when industry peers with weaker foundations are dialing back investment plans.”

For the full year, the company has lowered its gross margin outlook, expecting a range of 50-52 per cent instead of the prior 52.4-52.9 per cent.

The guidance is based on the current level of tariffs and the estimated impact of mitigating activities that the company plans to undertake.