Revolve Group posts double-digit annual growth on record active customers
Revolve Group announced on Thursday revenues for the full-year 2022 increase 24% to $1.1 billion, on the back of record active customer numbers for the twelve months ending December 31.
The owner or Revolve and Fwrd fashion e-commerce platforms said Revolve segment net sales were $921.7 million, a year-over-year increase of 24%, while Fwrd segment net sales were $179.7 million, a year-over-year increase of 23%. Domestic net sales increased 26% year-over-year and international net sales increased 13% year-over-year in 2022.
Net income for the year fell 41% to $58.7 million.
Likewise, fourth-quarter revenues reached $259.2 million, a year-over-year increase of 8% and representing a three-year compound annual growth rate of 21%. Active customers increased by 91,000 during the fourth quarter, growing to 2,340,000, an increase of 27% year-over-year. The addition of 500,000 active customers during 2022 represents record active customer growth for a full year by a wide margin, the company added.
Net income was $7.9 million, a 73 decrease on 2021, a comparison that was impacted by the lower gross margin referenced above, an increase in operating expenses that outpaced sales growth year-over-year and the meaningful differences in our effective tax rate.
"While the macro-environment has become more challenging in recent quarters, we have moved quickly and made progress in balancing our inventory investments while continuing to deliver profitable growth that truly stands out within our sector," said Mike Karanikolas, co-founder and co-CEO. "We are more excited than ever about the opportunity that lies ahead. With our technology and data-driven culture, financial discipline, operational excellence and innovative team, we believe we are well positioned to continue to take market share."
During the first seven weeks of the first quarter of 2023 ending on March 31, 2023 , net sales increased by a mid-single digit percentage year-over-year during the period, the company added.
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