US retailer Revolve Group registers gross margin of 49.8% in Q1

The company’s active customers increased by 84,000 during the first quarter of 2023, growing to 2,424,000 as of March 31, 2023, an increase of 19 per cent year-over-year. Net sales were $279.6 million, a year-over-year decrease of 1 per cent against a very difficult prior-year comparison yet representing a four-year compound annual growth rate of 19 per cent since the first quarter of 2019.

In the first quarter, net income was $14.2 million, a year-over-year decrease of 37 per cent, a comparison that was impacted by the lower gross margin and an increase in operating expenses year-over-year, partially offset by an increase in other income due primarily to an insurance reimbursement, the company said in a press release.

"We achieved excellent progress on rebalancing our inventory position and generated exceptional cash flow in the first quarter, despite a macroeconomic environment that became increasingly challenging as the quarter progressed, leading to deceleration in our net sales momentum," said co-founder and co-CEO Mike Karanikolas.

"Supported by our strong profitability and cash flow that truly stand out within the fashion e-commerce sector, we are continuing to innovate and leverage new technologies while executing on several important growth, brand-building and efficiency initiatives that we believe will further strengthen our foundation for profitable growth over the long term," said co-founder and co-CEO Michael Mente. 

Inventory as of March 31, 2023 was $190.2 million, a decrease of $25.1 million, or 12 per cent, from December 31, 2022, and an increase of $10.9 million year-over-year, or 6 per cent, from the inventory balance of $179.2 million as of March 31, 2022.

Fibre2Fashion News Desk (RR)