Revolve Group Announces Fourth Quarter and Full Year 2023 Financial Results

LOS ANGELES, Feb. 27, 2024

"I'm proud of our team's accomplishments in 2023 that set us up well for 2024," said co-founder and co-CEO Mike Karanikolas. "Despite the challenging backdrop for consumer discretionary spending, we closed out the year with a solid fourth quarter that included improved sales trends, year-over-year expansion of our gross margin and early progress on selling and distribution cost efficiencies."

"Our profitable and cash generative business remains a key competitive advantage that has enabled us to invest in longer-term growth initiatives throughout the cycle at a time when many industry peers have no choice but to significantly reduce investment," said co-founder and co-CEO Michael Mente.  "Our focus on maximizing value creation over the long-term is supported by investments in our brands, technology and operations as well as delivering value to stockholders through our $100 million stock repurchase program." 

Fourth Quarter 2023 Financial Summary

		Three Months Ended December 31,
		2023				2022 ARIVA.DE Börsen-Geflüster Kurse Revolve Group 18,14 $ -1,04%				YoY Change
		(in thousands, except percentages)
Net sales		$	257,778			$	259,153			(1 %)
Gross profit		$	134,049			$	133,288			1 %
Gross margin			52.0	%			51.4	%
Net income		$	3,494			$	7,868			(56 %)
Adjusted EBITDA (non-GAAP financial measure)		$	8,538			$	14,137			(40 %)
Net cash used in operating activities		$	(3,876)			$	(11,015)			NM
Free cash flow (non-GAAP financial measure)		$	(4,960)			$	(12,278)			NM

Fourth Quarter 2023 Operational Metrics

Additional Fourth Quarter 2023 Metrics and Results Commentary 

• Trailing 12-month Active customers increased by 33,000 during the fourth quarter of 2023, growing to 2,543,000 as of December 31, 2023, an increase of 9% year-over-year.  
• Total net sales were $257.8 million, a decrease of 1% year-over-year, and a sequential improvement from the 4% decrease year-over-year reported in the third quarter of 2023.      
• Gross profit was $134.0 million, an increase of 1% year-over-year.
• Gross margin was 52.0%, a year-over-year increase of 57 basis points that was driven by margin expansion in the REVOLVE segment. It was the first year-over-year increase in gross margin in six quarters. 
• Within operating expenses, our variable operating costs were more efficient than implied by our fourth quarter 2023 outlook, primarily driven by early progress in our efforts to contain shipping and logistics costs, which was offset by higher-than-expected general and administrative expenses.              
• Net income was $3.5 million, a year-over-year decrease of 56%, primarily due to growth in operating expenses year-over-year that more than offset the slight growth in gross profit referenced above. 
• Adjusted EBITDA was $8.5 million, a year-over-year decrease of 40%.  
• Diluted earnings per share (EPS) was $0.05, a year-over-year decrease of 55%.    

Additional Fourth Quarter 2023 Net Sales Commentary

• REVOLVE segment net sales were $220.0 million, a year-over-year increase of 1%.
• FWRD segment net sales were $37.8 million, a year-over-year decrease of 10%.
• Domestic net sales were $213.7 million, a year-over-year decrease of 2%.    
• International net sales were $44.1 million, a year-over-year increase of 7%.   

Additional trend information regarding Revolve Group's fourth quarter and full year 2023 financial results and operating metrics is available in the Q4 and FY 2023 Financial Highlights presentation available on the company's investor relations website at https://investors.revolve.com. 

Results Since the End of Fourth Quarter 2023

During the first eight weeks of 2024 (January 1, 2024 to February 25, 2024), net sales decreased by a mid-single digit percentage year-over-year compared to the same period in 2023.    

2024 Business Outlook

Based on information available to us as of February 27, 2024, we are providing the following guidance for the full year ending December 31, 2024 and the first quarter ending March 31, 2024.  

	FY 2024 Outlook
Gross margin	52.5% to 53.0%
Fulfillment expenses	3.3% to 3.5% of net sales
Selling and distribution expenses	17.8% to 18.0% of net sales
Marketing expenses	16.0% to 16.2% of net sales
General and administrative expenses	$130 million to $133 million
Effective tax rate	24% to 26%
	First Quarter 2024 Outlook
Gross margin	51.4% to 51.9%
Fulfillment expenses	3.5% of net sales
Selling and distribution expenses	18.1% of net sales 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 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares 02:00 - PR Newswire Third Point Investors Ltd - Monthly Update: May 2024 NAV Performance 02:00 - PR Newswire Vesuvius Plc - Transaction in Own Shares +++ 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