Revolve Group's Q4 and full year sales accelerate

For the fourth quarter, Revolve Group, Inc. total net sales were 239.8 million dollars, 70 percent increase and reflecting two-year growth of 63 percent compared to the fourth quarter of 2019.

This two-year growth rate, the company said in a statement, is an improvement relative to the 58 percent two-year growth rate reported for the third quarter of 2021 and a further improvement from the two-year growth rates reported for the first and second quarters of 2021.

“Our exceptional fourth quarter results demonstrate the power of our brands and our connection with the next generation consumer, highlighted by further acceleration of our net sales growth to 70 percent over the prior year and 63 percent over the fourth quarter of 2019,“ said the company’s co-founder and co-CEO Mike Karanikolas.

Review of Revolve’s Q4 results

The company added that accelerated growth in active customers was a key driver of strong results, highlighted by record quarterly growth of 162,000 active customers during the fourth quarter of 2021. Total active customers grew to 1.8 million, an increase of 25 percent year-over-year.

Gross margin was 54.8 percent, a decrease of 116 basis points from 56 percent in the fourth quarter of 2020, and an increase of 189 basis points compared to 52.9 percent in the fourth quarter of 2019.

Net income was 29.4 million dollars, an increase of 55 percent, and reflects two-year growth of 250 percent compared to net income in the fourth quarter of 2019. Adjusted EBITDA was 34.2 million dollars, an increase of 82 percent, and reflects two-year growth of 150 percent compared to the fourth quarter of 2019.

Diluted earnings per share (EPS) was 39 cents, an increase of 50 percent, and reflects two-year growth of 225 percent compared to EPS in the fourth quarter of 2019.

Revolve segment net sales were 200 million dollars, up 68 percent, and reflect two-year growth of 60 percent compared to the fourth quarter of 2019. FWRD segment net sales were 39.8 million dollars, up 83 percent, and reflect two-year growth of 78 percent compared to the fourth quarter of 2019. Domestic net sales increased 80 percent and international net sales increased 34 percent and reflect two-year growth of 62 percent and 67 percent compared to domestic and international net sales in the fourth quarter of 2019, respectively.

The company added that during the approximately seven weeks since December 31, 2021, net sales increased at a growth rate in the same zone as 70 percent growth in net sales during the fourth quarter of 2021.

Revolve Group’s full year sales increase 54 percent

Total net sales for the full year were 891.4 million dollars, an increase of 54 percent and reflect two-year growth of 48 percent compared to 2019.

Gross margin was 55 percent, an increase of 237 basis points from 52.6 percent in 2020, and an increase of 138 basis points from 53.6 percent in 2019. Net income was 99.8 million dollars, an increase of 76 percent and reflects two-year growth of 180 percent compared to 2019.

Adjusted EBITDA was 114.6 million dollars, an increase of 65 percent and reflects two-year growth of 106 percent compared to 2019. Diluted earnings per share (EPS) was 1.34 dollars, an increase of 70 percent.

Revolve segment net sales were 745.1 million dollars, an increase of 49 percent and reflect two-year growth of 41 percent compared to Revolve segment net sales in 2019. FWRD segment net sales were 146.3 million dollars, an increase of 83 percent and reflects two-year growth of 98 percent compared to 2019. Domestic net sales increased 55 percent and international net sales increased 46 percent, reflecting two-year growth compared to domestic and international net sales in 2019 of 44 percent and 68 percent, respectively.