Revolve Group posts Q4 revenue increase of 8 percent

Revolve Group said total fourth quarter net sales were 259.2 million dollars, up 8 percent and represented a three-year compound annual growth rate of 21 percent.

During the first seven weeks of the first quarter of 2023 , the company added that net sales increased by a mid-single digit percentage year-over-year during the period.

“2022 was the 19th full year since Mike and I founded Revolve, and I'm proud of our financial performance and the accomplishments our team delivered in such a dynamic operating environment," said the company’s co-founder and co-CEO Michael Mente.

Highlights of Revolve Group’s Q4

The company’s active customers increased by 91,000 during the fourth quarter of 2022, growing to 2,340,000 as of December 31, 2022, an increase of 27 percent year-over-year.

Gross margin was 51.4 percent, down 339 basis points. Net income was 7.9 million dollars, down 73 percent, adjusted EBITDA was 14.1 million dollars, down 59 percent and diluted earnings per share were 11 cents, a decrease of 72 percent.

Revolve segment net sales were 217.1 million dollars, an increase of 9 percent, FWRD segment net sales were 42 million dollars, up 5 percent, domestic net sales increased 9 percent and international net sales increased 1 percent.

"While the macroenvironment has become more challenging in recent quarters, we have moved quickly and made progress in balancing our inventory investments while continuing to deliver profitable growth that truly stands out within our sector," added Mike Karanikolas, the company’s co-founder and co-CEO.

Review of Revolve Group’s annual performance

Total net sales for the year were 1.1 billion dollars, an increase of 24 percent.

Gross margin was 53.8 percent, a decrease of 117 basis points. Net income was 58.7 million dollars, down 41 percent, adjusted EBITDA was 90.2 million dollars, a decrease of 21 percent and diluted EPS was 79 cents, a decrease of 41 percent.

Revolve segment net sales were 921.7 million dollars, up 24 percent, FWRD segment net sales were 179.7 million dollars, an increase of 23 percent, domestic net sales increased 26 percent and international net sales increased 13 percent year-over-year.