Revolve Group Q1 sales and earnings decline

Revolve Group’s first quarter net sales were 270.6 million dollars, a decrease of 3 percent.

Net sales in April 2024 increased by a low single digit percentage, a sequential improvement compared to the trend reported for the first quarter of 2024.

"We delivered significant expansion of our gross margin and year-over-year efficiency in our variable logistics costs in the first quarter of 2024, which contributed to strong profitability and cash flow generation that further strengthened our balance sheet," said co-founder and co-CEO Mike Karanikolas in a statement.

Gross profit for the quarter was 141.5 million dollars, an increase of 2 percent, while gross margin was 52.3 percent, an increase of 250 basis points that was driven by margin expansion in the Revolve segment.

Net income was 10.9 million dollars, down 23 percent, adjusted EBITDA was 13.3 million dollars, a decrease of 12 percent and diluted earnings per share (EPS) was 15 cents, a decrease of 21 percent.

Revolve segment net sales were 229.6 million dollars, down 1 percent, FWRD segment net sales were 41 million dollars, down 15 percent, domestic net sales were 219.1 million dollars, a decrease of 3 percent and international net sales were 51.5 million dollars, also a decrease of 3 percent.

Commenting on the company’s performance, Revolve Group co-founder and co-CEO Michael Mente added: "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."