Revolve Profits Surge As Outings Are Back
They’re dressing for nights out on the town again.
Revolve Group, the Los Angeles-based online retail company known for clothing and apparel targeted at younger shoppers, reported a record $22 million in net income in the first quarter of 2021, a roughly 435 percent increase from last year.
In the three months ending on March 31, the company’s net sales were a record $179 million, a 22.5 percent increase from last year, and it registered some $33 million in cash flow, the company said Thursday after the bell. Its shares rose roughly 9 percent in after-market trading to $56.40.
“Our exceptional results for the first quarter reinforce our belief that Revolve is uniquely positioned for the reopening of economies and the post-COVID-19 world as a brand consumers associate with living an active social lifestyle,” the company’s cofounder and co-chief executive officer Mike Karanikolas said in a statement.
“We are excited to reaccelerate our investment in the business to support our next phase of growth,” he said.
The sales growth came from demand for both, beauty, sleep and casual wear apparel as well as going-out clothes, and shoppers more inclined to spend stimulus checks on discretionary purchases, the company said.
“Particularly exciting is that the strong recovery in March came from a return to growth in styles associated with social outings, such as dresses, as well as continued strong growth in at-home related products, including beauty, intimates and activewear that have grown rapidly throughout the pandemic,” Revolve cofounder and co-chief executive officer Michael Mente said in a statement.
“Driven by our powerful brand, our proprietary technology, and our data-driven merchandising, our results demonstrate great progress against our goal of developing a deeper relationship with our customer and capturing a larger share of her wallet over time,” he said.
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