Revolve Group posts strong growth in Q2 earnings

Revolve Group’s second quarter net sales were 282.5 million dollars, up 3 percent, while diluted earnings per share of 21 cents, increased 110 percent.
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Gross profit for the quarter was 152.6 million dollars, an increase of 3 percent, while gross margin was 54 percent, an increase of 7 basis points.

Net income was 15.4 million dollars, an increase of 111 percent and adjusted EBITDA of 20.5 million dollars, increased 97 percent.

“Key contributors to our strong results were significantly improved marketing efficiency and greater efficiency in our logistics costs, helped by the first year-over-year decrease in our return rate in more than three years,” said the company’s co-founder and co-CEO Mike Karanikolas.

The company said in a release that after the end of the quarter, net sales in July increased by a mid-single digit percentage.

The company’s Revolve segment net sales were 245.5 million dollars, up 4 percent and FWRD segment net sales of 36.9 million dollars, decreased 4 percent. The company added that domestic net sales were 225.1 million dollars, up 1 percent, while international net sales of 57.4 million dollars, increased 13 percent, driven by growth in nearly all major regions.

Commenting on the outlook, Revolve Group co-founder and co-CEO Michael Mente said: “Beyond the numbers, we continue to make great progress on longer-term initiatives that we believe further reinforce our foundation for profitable growth in the years to come.”