Revolve Q4 sales dip despite improvements in international, namesake retail segments

Revolve Group announced on Tuesday net sales for the fourth quarter totalled $257.8 million, a decrease of 1%, as the U.S. luxury e-commerce firm continues to see improvements in revenue growth. 

The Los Angeles-based company said domestic net sales were $213.7 million, a year-over-year decrease of 2%, while international sales increased 7% to $44.1 million for the three months.

By segment, Revolve sales inched forward 1%, offset by a 10% drop in Fwrd sales to $37.8 million. 

For the full-year ending December 31, Revolve Group clocked a 3% drop in net sales to $1.1 billion, with net income of $28.1 million, down 52%, hurt by the slight decrease in net sales, reduced gross profit and an increase in operating expenses year-over-year. 

​”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,” added 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.” 

On Monday, the company announced the appointment of Marianna Hewitt as the creative director of its in-house label, L’Academie, after the addition of Jennifer Baxter Moser to its board of directors, back in January.