Revolve Group, a popular online retailer, faced a decline in revenues during the third quarter of 2023. The company reported a total revenue of $257.6 million, representing a 4% decrease compared to the previous year. This decline can be attributed to a decrease in average spend per active customer and a dip in sales for both the Revolve and Fwrd brands. Revolve’s net sales reached $217.7 million, down 2%, while Fwrd segment sales plummeted by 14% to $39.9 million.
Looking at sales by region, domestic net sales amounted to $207.2 million, showing a 5% decrease from the previous year. Even international sales experienced a decline, reaching $50.4 million, down 1% year-over-year.
In terms of net income, Revolve Group faced a significant decrease with $3.2 million, representing a 73% drop. This decline can be primarily attributed to the decrease in net sales, a reduction in gross profit compared to the same period last year, continued pressure on certain operating expenses, and an accrual of $6.6 million for a pending legal matter.
Despite the challenging quarter, Revolve Group did experience positive growth in its active customer base. The number of active customers increased by 52,000 during the third quarter, reaching a total of 2,510,000 as of September 30. This represents a 12% increase compared to the previous year.
Co-founder and co-CEO Michael Mente expressed optimism about the future of the company. He highlighted the achievement of surpassing 2.5 million active customers and emphasized the potential for improved results in the long term. Mente stated that while the average spend per active customer has decreased in the current challenging environment, this is expected to normalize as conditions improve. Revolve Group plans to utilize its core competencies of technology innovation, operating efficiency, and brand building to drive future growth.
As Revolve Group continues to navigate the ever-changing fashion industry landscape, the company remains committed to its mission of providing a unique and personalized shopping experience for its customers. With a solid customer base and a dedication to innovation, Revolve Group is well-positioned to adapt and thrive in the coming years.
Useful links:
1. Revolve Group Official Website
2. Fwrd Official Website
