Revolve Group, a prominent player in the fashion industry, has delivered impressive results in its Q3 earnings report, defying industry challenges. Despite facing headwinds, the company reported Q3 revenues of $257.6 million, representing a modest 4% decline. This decline can be attributed to a reduction in the average spending per active customer and reduced sales across both of its renowned brands.
Revolve Group, the parent company of Revolve and Fwrd, disclosed that net sales at Revolve reached $217.7 million, marking a 2% decrease. This dip was partially offset by a 14% reduction in Fwrd segment sales, amounting to $39.9 million.
Analyzing sales performance by region, domestic net sales registered at $207.2 million, reflecting a 5% decline. International sales dipped to $50.4 million, marking a 1% decrease year-over-year.
Despite facing financial challenges, the Los Angeles-based retailer achieved a significant milestone. The number of active customers over the trailing 12 months grew by 52,000 during the third quarter, reaching a total of 2,510,000 as of September 30, marking a robust 12% year-over-year increase.
Co-founder and co-CEO Michael Mente underscored the company’s resilience, stating, «A key highlight of the third quarter was surpassing 2.5 million active customers, an increase of 12% year-over-year, and over one million more active customers than the third quarter of 2019. While average spending per active customer has decreased year-over-year in this challenging environment, we view this as a temporary dynamic that will normalize as the situation improves. Looking ahead, our team is energized by the opportunity to drive improved results across a wide range of longer-term initiatives that leverage our core competencies of technology innovation, operating efficiency, and brand building that have served us well for the past two decades.»
Revolve Group’s Q3 performance highlights its adaptability and readiness to navigate changing industry dynamics while seizing future opportunities. This resilience positions the company for continued growth and success in the ever-evolving world of fashion and retail.