Revolve Group, the parent company of popular fashion e-commerce platforms Revolve and Fwrd, experienced significant growth in its annual revenues for 2022. The company announced a 24% increase in revenues, reaching a total of $1.1 billion, largely driven by a surge in active customers. Net sales for the Revolve segment saw a year-over-year increase of 24% to $921.7 million, while Fwrd segment net sales grew by 23% to $179.7 million. Domestic net sales also saw a healthy increase of 26%, while international net sales grew by 13%.

Despite this strong revenue growth, Revolve Group’s net income for the year declined by 41% to $58.7 million. In the fourth quarter of 2022, revenues continued to rise, reaching $259.2 million, representing a three-year compound annual growth rate of 21%. The company added 91,000 active customers during this quarter, bringing the total to 2,340,000, marking a 27% year-over-year increase. In 2022, Revolve Group successfully added 500,000 active customers, setting a new record for the company.

The decrease in net income for 2022 can be attributed to various factors, including lower gross margins, increased operating expenses outpacing sales growth, and fluctuations in the effective tax rate. However, despite these challenges, Revolve Group remains optimistic about its future prospects. Co-founder and co-CEO Mike Karanikolas emphasized the company’s ability to strike a balance between inventory investments and profitable growth. He also highlighted the company’s strong technological capabilities, data-driven culture, financial discipline, operational excellence, and innovative team as key strengths that position Revolve Group for continued market share expansion.

Looking forward, the company has reported solid net sales growth in the first seven weeks of the first quarter of 2023, ending on March 31. Net sales have increased by a mid-single digit percentage compared to the same period last year. With its impressive performance and positive outlook, Revolve Group is poised for sustained success in the fashion e-commerce industry.

Useful links:
Revolve website
Fwrd website