Revolve Q3 profits climb 34%
today Nov 8, 2019
Revolve Group Inc. announced on Thursday a net income jump of 33.9 percent, climbing to $9.6 million in its third quarter ended September 30, 2019.
The Los Angeles-based online clothing company said it had profit of 13 cents per share.
Meanwhile, the online women's fashion retailer saw total net sales climbed 22.5 percent year-over-year to $154.2 million.
Its Revolve segment recorded the highest increase with net sales of $135.4 million, climbing 23.7 percent, while its Forward segment reached net sales of $18.8 million, up 14.2 percent year-over-year.
“We delivered strong growth in net sales, profitability and cash flows in Q3, while continuing to invest in the large market opportunity ahead of us,” said co-founder and co-CEO Mike Karanikolas, in a news statement.
“Our ability to drive profitable growth at scale illustrates our unique business model and the deep relationship we have established with our growing customer base,” added co-founder and co-CEO Michael Mente.
Revolve built its company by targeting millennial and Gen Z women via a network of some 3,500 influencers, with large followings on social media platforms like Instagram. The company often throws extravagant parties for influencers and hosts more than 100 events a year.
Founded in 2003 by Michael Mente and Mike Karanikolas, Revolve Group raised $212 million in an initial public offering earlier this year, in June.
It priced its shares at $18 each for an initial public offering with an overall valuation of $1.23 billion.
Looking ahead, the fashion e-commerce company expects full-year revenue in the range of $598 million to $606 million, up 20-22 percent.
Adjusted EBITDA is expected to be in the range of $51 - $55 million.
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