Revolve first-quarter sales hurt by domestic dip resulting in earnings plummet
Revolve Group Inc. announced on Wednesday revenues for the first quarter dipped 1% to $279.6 million,on the back a dwindling Revolve segment sales, partially offset by an increase in sales at its Fwrd segment.
The Los Angeles-based company said Revolve net sales were $231.7 million, a year-over-year decrease of 3%, while Fwrd segment sales were $48 million, up 5%. Domestic net sales decreased 5%, and international net sales increased 16% year-over-year, the fashion group said.
Coinciding with the overall sales decline, Revolved record a 37% drop in net income to $14.2 million.
"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.
Beyond the first quarter, Revolve said sales in April decreased approximately 7%, against a difficult prior-year comparison. It also attributed the sales decline to an uncertain macroeconomic environment highlighted by consumer inflationary pressures, U.S. Department of Commerce reports of decelerating consumer spending on apparel in recent months and continued foreign exchange headwinds year-over-year.
"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," added co-founder and co-CEO Michael Mente.
In April, the luxury e-tailer unveiled what it said is the world's first AI-generated billboard campaign, entitled 'Best Trip', in celebration of the company's 20th anniversary.
Copyright © 2023 FashionNetwork.com All rights reserved.