Revolve Group posts growth in revenue and active customers

Revolve Group, Inc. reported an increase in active customers by 84,000 during the third quarter of 2022, growing to 2,249,000 as of September 30, 2022, an increase of 34 percent year-over-year.

The company’s total net sales were 268.7 million dollars, an increase of 10 percent year-over-year. Revolve segment net sales were 222.1 million dollars, an increase of 9 percent and FWRD segment net sales were 46.6 million dollars, an increase of 17 percent.

"We delivered another profitable quarter with double-digit growth in net sales in the third quarter of 2022, despite the increasingly challenged macro environment," said co-founder and co-CEO Mike Karanikolas in a statement.

The company’s domestic net sales increased 10 percent and international net sales increased 12 percent.

Gross profit for the quarter was 142.4 million dollars, an increase of 6 percent year-over-year and gross margin was 53 percent, a decrease of 211 basis points.

Net income was 12 million dollars, a decrease of 28 percent, while adjusted EBITDA was 17.7 million dollars, a decrease of 18 percent and diluted earnings per share (EPS) were 16 cents, a decrease of 27 percent.

"With our profitable business model and strong balance sheet, we are excited about our continued investments in our brand and technology that we believe will enable us to further capture market share in pursuit of our very large global market opportunity," added co-founder and co-CEO Michael Mente.

The company said that net sales in October 2022 increased approximately 3 percent amidst an increasingly uncertain macroenvironment highlighted by inflationary pressures and foreign exchange headwinds due to significant appreciation of the U.S. dollar against foreign currencies in recent months, and against a more elevated prior-year comparison than in the first nine months of 2022.