<\/p>\n
\n\tThe kids are all right \u2014 or at least they\u2019re still spending.<\/p>\n
\n\tRevolve Group Inc., which bills itself as \u201cthe next-generation fashion retailer for Millennial and Gen Z consumers\u201d turned in a stronger-than-expected top line for the third quarter.<\/p>\n
\n\tSales rose 20 percent to $356 million for the quarter ended Sept. 30 \u2014 better than the 16.9 percent analysts counted on, according to Yahoo Finance. Sales at both divisions moved in lock step with the corporate average, with Revolve up to $306.8 million and Fwrd tallying $49.2 million.<\/p>\n
\n\tThe company\u2019s active customer count rose 18 percent to 3.2 million for the trailing 12 months. Those shoppers delivered Revolve a 19 percent increase in orders, although the average order value slipped 5 percent to $292, a decline the company said was \u201cprimarily attributable to initial sales of Grow-Good beauty products at much lower price points.\u201d Grow-Good, which launched in the spring, is part of a joint venture with Cardi B.<\/p>\n
\n\tMichael Karanikolas, cofounder and co-chief executive officer, told analysts on a conference call: \u201cOur strong top-line results and the momentum in our customer base in recent quarters is especially noteworthy in an environment where many in our industry have seen softer trends. We believe that it shows our investments are delivering results and reflects the team\u2019s disciplined execution against our key growth initiatives.\u201d<\/p>\n
\n\tKaranikolas also pointed to continued improvement in the company\u2019s return rate, which decreased by more than 2 percent from a year earlier.<\/p>\n
\n\tHe pointed to category diversification as \u201ca big driver\u201d of the shift, along with other initiatives that have helped the company cut return rates in eight of the last 10 quarters.<\/p>\n
\n\tThe improvement in returns helped \u201cabsorb the impact of higher fuel surcharges on our logistics costs this quarter,\u201d he said.<\/p>\n
\n\tThose shipping costs prevented the revenue increases from translating well on the bottom line.<\/p>\n
\n\tNet income fell 27 percent to $15.5 million for the quarter and adjusted earnings before interest, taxes, depreciation and amortization dipped 7 percent to $23.5 million.<\/p>\n
\n\tInvestors traded shares of the company down 4.8 percent to $20.50 in after-hours trading on Tuesday.<\/p>\n
\n\tMichael Mente, cofounder and co-CEO, said in a statement: \u201cOur strong top-line growth and customer engagement metrics are a reflection of our brand strength and a result of our investments in brand building, physical retail expansion and key partnerships, including the recent launch of Revolve Los Angeles and our inaugural Revolve Magazine, our new joint venture with Donatella Versace, and recently announced expanded partnerships with Kendall Jenner and Dwyane Wade.\u201d<\/p>\n
\n\tRevolve spent 14.3 percent of sales, or $50.8 million, on marketing in the third quarter, up from 13.7 percent, or $40.4 million, a year earlier.<\/p>\n
\n\tThe company said that increase reflected a rise in \u201cperformance marketing and brand marketing investments to support various growth initiatives, including our first namesake label, Revolve Los Angeles, within our owned brand assortment.\u201d<\/p>\n
\n\tRevolve is going to keep spending to put itself in front of consumers and plans to devote 16.9 percent of sales to marketing in the fourth quarter.<\/p>\n
#Revolve #RVLV #Earnings #Decline #Sales #Gains<\/p>\n","protected":false},"excerpt":{"rendered":"
The kids are all right \u2014 or at least they\u2019re still spending. Revolve Group Inc., which bills itself as \u201cthe next-generation fashion retailer for Millennial and Gen Z consumers\u201d turned… <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[242],"tags":[],"class_list":["post-1871","post","type-post","status-publish","format-standard","hentry","category-editors-pick"],"_links":{"self":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts\/1871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1871"}],"version-history":[{"count":0,"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts\/1871\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}