Revolve 2021 income, revenues spike on fourth-quarter active customer and sales growth

By

Benjamin Fitzgerald

Published
Feb 24, 2022

Luxury online retail company Revolve Group on Wednesday reported a revenue and earnings spike in 2021, on the back of accelerated growth in both active customers and sales during the fourth quarter.

The owner of millennial-focused luxury portals Revolve and FWRD said net sales during the fourth quarter totalled $239.8 million, a year-over-year increase of 70%, and reflected a two-year growth of 63% compared to the fourth quarter of 2019, before the onset of the Covid-19 pandemic. 

Accelerated growth in active customers was a key driver in the fourth quarter, highlighted by record quarterly growth of 162,000 active customers, taking the number to 1.8 million, or an increase of 25% year-over-year, "illustrating the strong consumer appeal of our offerings," said the Los Angeles-based company.

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“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% over the prior year and 63% over the fourth quarter of 2019,“ said co-founder and co-CEO Mike Karanikolas.

Likewise, quarterly net income reached $29.4 million, a year-over-year increase of 55%, and reflected two-year growth of 250% compared to net income in the fourth quarter of 2019.

“I am very proud of our team for continuing to deliver such outstanding results amidst a challenging macro environment and supply chain headwinds, including record profitability for a fourth quarter with $29 million in net income, increasing 55% over the prior year and 250% over the fourth quarter of 2019," saud Karanikolas

By segment, Revolve net sales were $200million, for the quarter, year-over-year increase of 68%,  while FWRD sales totalled $39.8 million, a year-over-year increase of 83%.

Geographically, domestic sales increased 80% year-over-year and international net sales increased 34% year-over-year.

For the full year ending December 31, Revolve Group sales surged to $891.4 million, a year-over-year increase of 54%, and 48% growth compared to 2019.  ​Net income spiked to $99.8 million, a year-over-year increase of 76%, and 180% growth compared to 2019.