Revolve Group Inc. reported total second quarter net sales of 290.1 million dollars, an increase of 27 percent year-over-year.
Gross margin was 55.9 percent, an increase of 29 basis points and the company’s highest-ever gross margin for a second quarter.
The company attributed the sales increase to continued strong growth in active customers, highlighted by quarterly growth of approximately 124,000 during the second quarter of 2022, the highest ever for a second quarter. Total active customers grew to 2.2 million, an increase of 39 percent year-over-year.
"We delivered strong results in the second quarter, highlighted by record net sales that increased 27 percent year-over-year, gross margin expansion to record levels for a second quarter, and continued strong growth in active customers," said the company’s co-founder and co-CEO Mike Karanikolas in a statement.
Highlights of Revolve’s second quarter results
The company’s net income was 16.3 million dollars, a decrease of 48 percent, impacted by the differences in effective tax rate and the growth in operating expenses.
Adjusted EBITDA was 26.9 million dollars, a year-over-year decrease of 24 percent, while diluted earnings per share (EPS) were 22 cents, a decrease of 48 percent.
Revolve segment net sales were 244.7 million dollars, an increase of 30 percent and FWRD segment net sales were 45.3 million dollars, an increase of 14 percent. The company said, FWRD faced a much more difficult growth comparison against the prior-year comparable period as FWRD net sales had increased 151 percent in the second quarter of 2021.
Domestic net sales increased 30 percent and international net sales increased 14 percent.
The company’s net sales in July 2022 increased approximately 10 percent amidst an increasingly uncertain macroenvironment with inflation at a 40-year high and U.S. consumer sentiment reaching a record low in the second quarter and against a more elevated prior-year comparison than we faced in the first half of 2022.
"Over our nearly 20 years of operating history, we believe we have demonstrated a unique track record for outperforming the competition in times of disruption and volatility, and we have complete confidence in our team's ability to continue to execute through even the most challenging circumstances," added Revolve co-founder and co-CEO Michael Mente.