Revolve sales growth accelerates in third quarter
Los Angeles-based online fashion retailer Revolve Group, Inc. announced net sales of $244.1 million for the third quarter ended September 30, 2021, on Wednesday, up 62% from $151.0 million in the prior-year period.
The figure also represented a 58% rise compared to the $154.2 million reported by Revolve in Q3 2019, the most recent third quarter before the company suffered from the impact of the Covid-19 pandemic. As pointed out by Revolve co-founder and co-CEO Mike Karanikolas in a release, this growth reflected “a meaningful acceleration” when compared to the 41% rise in sales reported by the e-tailer between the second quarter of 2021 and Q2 2019.
Broken down by segment, the company achieved sales of $204.2 million in its namesake Revolve business, up 56% year over year, and 51% compared to Q2 2019. In the FWRD segment, quarterly sales were $39.9 million, up 95% compared to the prior-year period and 112% from two years ago.
The company’s domestic sales saw year-over-year growth of 65% in the quarter, while its international revenues rose 49%.
The group’s e-commerce platform currently boasts 1.7 million active users, a 12% increase from 1.5 million a year ago. The number of orders placed through the platform in the third quarter rose 60% year over year to $1.1 million, while average order value increased 19% to $276.
Despite all of this progress, however, Revolve’s net income slipped 14% from $19.4 million in Q3 2020 to $16.7 million in Q3 2021. According to the company, this reflected increased investments in brand marketing initiatives as it sought to capitalize on the reopening of economies in the wake of the Covid-19 crisis, as well as on existing brand momentum.
Compared to the third quarter of 2019, when the group’s net earnings totaled $9.6 million, Revolve’s income in its most recent Q3 reflected growth of 74%.
Diluted earnings per share were $0.22, down 19% from $0.27 last year and up 69% compared to Q3 2019.
“Our third quarter results reinforce our conviction that our competitive strengths will enable us to continue to thrive as we transition to a post-pandemic world,” commented Revolve co-founder and co-CEO Michael Mente. “Our current momentum and the strength of our brands is broad based across both Revolve and FWRD. We are particularly excited by our recent announcement that Kendall Jenner is serving as FWRD’s creative director.”
Model and TV personality Jenner was appointed to this role in September, when it was revealed that she would be tasked with curating the FWRD site’s offering, as well as monthly trend edits, among other responsibilities.
Year to date, Revolve has achieved net sales of $651.6 million, up 48% from $439.9 million in the same period in the previous year, while the company’s net income so far this year is currently $70.5 million, or $0.95 per diluted share, compared to $37.8 million, or $0.52 per diluted share, a year ago.
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