Revolve profits skyrocket with return of social outings
Los Angeles-based online fashion retailer Revolve Group, Inc. achieved record income of $22.3 million in the first quarter, representing an increase of 435% compared to $4.2 million in the prior-year period. Diluted earnings per share for the quarter came to $0.30, up from $0.06 in Q1 2020.
These results also represented strong growth when compared to Q1 2019, the most recent first quarter before the onset of the Covid-19 pandemic, when Revolve’s earnings totaled $5.0 million.
According to Revolve co-founder and co-CEO Michael Mente, “the strong recovery in March came from a return to growth in styles associated with social outings, such as dresses, as well as continued strong growth in at home related products, including beauty, intimates and activewear that have grown rapidly throughout the pandemic.”
Total net sales for the quarter ended March 31, 2021, were $178.9 million, reflecting a year-over-year increase of 22.5% from $146.1 million in the same period in the previous year.
Looked at in more detail, the company’s Revolve segment contributed net sales of $152.2 million in the quarter, up 22.2% from the prior-year period, while sales in the Forward segment totaled $26.7 million, increasing 23.8% year over year.
Growth in the group’s international sales outperformed the performance of domestic sales with a year-over-year increase of 38%, compared to a 19% rise on the company’s home market. Progress in Revolve’s international business was driven by strong gains in Australia, Canada, and Greater China, all of which delivered strong double-digit sales growth in the quarter.
“Our exceptional results for the first quarter reinforce our belief that Revolve is uniquely positioned for the reopening of economies and the post-Covid world as a brand consumers associate with living an active social lifestyle,” commented the group’s other co-founder and co-CEO, Mike Karanikolas, in a release. “We are excited to re-accelerate our investment in the business to support our next phase of growth.”
Since the end of the first quarter, the company’s strong momentum has continued to build, with year-over-year growth in April noticeably outstripping that seen in 2021.
Revolve also pointed out that, having recently resumed and achieved success with its in-person marketing events in Australia and Los Angeles, the company is planning to make further investments in marketing events and programs in order to “capitalize on the reopening opportunity with newly vaccinated consumers.”
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