Revolve Group Announces First Quarter 2024 Financial Results

LOS ANGELES, May 7, 2024

"We delivered significant expansion of our gross margin and year-over-year efficiency in our variable logistics costs in the first quarter of 2024, which contributed to strong profitability and cash flow generation that further strengthened our balance sheet," said co-founder and co-CEO Mike Karanikolas. "I am also encouraged that we returned to positive growth in net sales year-over-year during the final month of our first quarter of 2024 as well as during the first month of our second quarter of 2024."

"I am excited by our progress on key initiatives that further improves our foundation for profitable growth," said co-founder and co-CEO Michael Mente.  "In recent months, we have delivered great progress on drivers of future growth and efficiency including product category expansion, elevating service levels in international markets, leveraging AI technology, further enhancing our digital merchandising, and efficiently investing in our brands to further strengthen our connection with the next-generation consumer."   

 First Quarter 2024 Financial Summary

		Three Months Ended March 31,
		2024				2023 ARIVA.DE Börsen-Geflüster Kurse Revolve Group 18,33 $ 0,00%				YoY Change
		(in thousands, except percentages)
Net sales		$	270,581			$	279,609			(3 %)
Gross profit		$	141,502			$	139,220			2 %
Gross margin			52.3	%			49.8	%
Net income		$	10,873			$	14,172			(23 %)
Adjusted EBITDA (non-GAAP financial measure)		$	13,267			$	15,010			(12 %)
Net cash provided by operating activities		$	38,391			$	48,829			(21 %)
Free cash flow (non-GAAP financial measure)		$	36,656			$	47,681			(23 %)

Operational Metrics

Additional First Quarter 2024 Metrics and Results Commentary

• Trailing 12-month Active customers grew to 2,551,000 as of March 31, 2024, an increase of 5% year-over-year. 
• Net sales were $270.6 million, a year-over-year decrease of 3%, which reflects increased net sales at full price in the first quarter of 2024 that were more than offset by lower net sales at a markdown year-over-year. 
• Gross profit was $141.5 million, a year-over-year increase of 2%. 
• Gross margin was 52.3%, a year-over-year increase of 250 basis points that was driven by margin expansion in the REVOLVE segment. The increased gross margin primarily reflects a higher mix of net sales at full price in the first quarter of 2024 and lower inventory valuation adjustments as compared to the first quarter of 2023.     
• Net income was $10.9 million, a year-over-year decrease of 23%, and included an insurance recovery of $2.8 million ($2.1 million, net of taxes) within other income, net.    
• Adjusted EBITDA was $13.3 million, a year-over-year decrease of 12% that primarily reflects higher general and administrative expenses in the first quarter of 2024 and increased marketing investment due to a shift in the timing of brand marketing investments year-over-year, partially offset by increased gross profit and efficiencies in selling and distribution costs year-over-year.  
• Diluted earnings per share (EPS) was $0.15, a year-over-year decrease of 21%. EPS for the first quarter of 2024 included the insurance recovery mentioned above equivalent to approximately $0.03 per share.   

Additional Net Sales Commentary

• REVOLVE segment net sales were $229.6 million, a year-over-year decrease of 1%.
• FWRD segment net sales were $41.0 million, a year-over-year decrease of 15%.   
• Domestic net sales were $219.1 million, a year-over-year decrease of 3%.
• International net sales were $51.5 million, also a year-over-year decrease of 3%.  

Cash Flow and Balance Sheet

• Net cash provided by operating activities was $38.4 million and free cash flow was $36.7 million, further strengthening our balance sheet and supporting our commitment to enhance shareholder value through capital allocation. These cash flow metrics decreased 21% and 23%, respectively, versus the first quarter of 2023, when our cash flow benefited meaningfully from favorable working capital movements including a large reduction in inventory during the prior-year period.  
• Stock repurchases were $8.0 million for the first quarter ended March 31, 2024, exclusive of broker fees and excise taxes. The company repurchased 530,007 shares of its Class A common stock during the first quarter at an average cost of $15.17. $61.4 million remained available under the company's $100 million stock repurchase program as of March 31, 2024.
• Cash and cash equivalents: The strong cash flow generation has further strengthened our balance sheet and liquidity. Cash and cash equivalents as of March 31, 2024 were $273.4 million, an increase of $28.0 million, or 11%, from $245.4 million as of December 31, 2023. Our balance sheet as of March 31, 2024 remains debt free. The year-over-year decrease in cash and cash equivalents compared to March 31, 2023 primarily reflects significant cash flow generated from operations that was more than offset by $38.6 million in stock repurchases since we established our $100 million stock repurchase program in August 2023.
• Inventory as of March 31, 2024 was $201.8 million, an increase of $11.7 million, or 6%, from March 31, 2023.            

Additional trend information regarding Revolve Group's first quarter of 2024 financial results and operating metrics is available in the Q1 2024 Financial Highlights presentation available on our investor relations website:  https://investors.revolve.com/events-and-presentations/default.aspx 

Results Since the End of the First Quarter of 2024

Net sales in April 2024 increased by a low single digit percentage year-over-year, a sequential improvement compared to the year-over-year trend reported for the first quarter of 2024.

2024 Business Outlook

Based on information available to us as of May 7, 2024, we are providing the following guidance for the full year ending December 31, 2024 and the second quarter ending June 30, 2024.  

	Updated FY 2024 Outlook	Prior FY 2024 Outlook
Gross margin	52.5% to 53.0%	52.5% to 53.0%
Fulfillment expenses	3.3% to 3.5% of net sales	3.3% to 3.5% of net sales
Selling and distribution expenses	17.8% to 18.0% of net sales	17.8% to 18.0% of net sales
Marketing expenses	16% to 16.2% of net sales	16% to 16.2% of net sales
General and administrative expenses	$130 million to $133 million	$130 million to $133 million
Effective tax rate	24% to 26%	24% to 26% Werbung Mehr Nachrichten zur Revolve Group Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 05:34 - PR Newswire Norges Bank - Form 8.3 - Virgin Money UK PLC 02:00 - PR Newswire BlackRock Sustainable American Income Trust Plc - Total Voting Rights 05.06.24 - ARIVA.DE Redaktion Minimales Kursplus bei der Mercedes-Benz Group-Aktie (65,75 €) +++ Breaking the Wall +++    Uranmarkt geht wieder steil! Warum Sie hier dabei sein sollten! weiterlesen» Anzeige wo-site-teaser-box-17178_site-teaser-box_2024-06-06_08%253A00%253A00_2024-06-07_09%253A00%253A59