- Huw Hughes |
US fashion e-tailer Revolve has more than doubled its profit in the third quarter despite a small dip in sales.
For the three months to 30 September, the California-based company saw its net profit increase 103 percent to 19.4 million dollars, while net sales dropped 2 percent to 151 million dollars.
Breaking it down by segment, the namesake Revolve segment saw net sales fall 3.6 percent to 130.6 million dollars, while the Forward segment saw net sales increase 9 percent to 20.5 million dollars, with the latter’s handbag category performing particularly well.
Revolve reports record profit
“Strong execution on our merchandising and operational initiatives led to another quarter of record results,” co-founder and co-CEO Mike Karanikolas said in a statement. “Despite the challenging backdrop and short-term pressures, we continued to drive efficiencies throughout the business in the third quarter, leading to higher margins and record profitability.”
The brand, which targets Millennial and Gen Z consumers, said moving forward it will continue to invest in its inventory position, particularly in targeted categories that reflect current lifestyle trends such as loungewear, athleisure, and knits.
Co-founder and co-CEO Michael Mente said: “Our strong results underscore the power of our brand, the strength of our business, and most importantly, the incredible execution of our team.
“We achieved the strong profitability while continuing to invest in key initiatives to maximize our growth potential over the long term, such as elevating our international service levels, further innovation in broadening our marketing playbook, and category expansion within our owned brands.”
Photo credit: Revolve, Facebook