Revolve Group, the popular online fashion retailer that caters to young consumers, has announced a 16% increase in sales for the fourth quarter. This growth was mainly driven by the success of its high-end Forward business, which experienced a significant 33% increase in sales. Overall, Revolve Group’s net sales for the quarter reached $147.6 million, up from $127.7 million in the same period the previous year. The company’s namesake Revolve segment also saw a healthy 13% increase in sales, totaling $125.2 million.

While Revolve Group’s sales performance in the fourth quarter remained strong, it is worth noting that it represents a slight slowdown compared to the robust growth rates of 22.8% and 22.5% seen in the second and third quarters, respectively. Furthermore, the company’s total fourth-quarter revenues fell below analysts’ expectations of $152.2 million. Nevertheless, Revolve Group’s net income for the quarter rose by 9% to $8.4 million, compared to $7.7 million in the same period the previous year.

For the full year of 2019, Revolve Group achieved sales of $601.0 million, marking a substantial 21% increase from the previous year. The majority of these sales, amounting to $527.3 million, were generated by the Revolve segment, which experienced a solid 22% year-over-year increase. The remaining $73.7 million of sales came from the Forward segment, representing a 13% increase.

Co-founder and co-CEO of Revolve Group, Michael Mente, expressed his satisfaction with the company’s growth and profitability in 2019. He stated, “We take pride in maintaining our consistent track record of achieving strong top-line growth and profitability. In 2019, we achieved over 20% net sales growth, continued profitability growth, and exceptional cash flow.” Looking ahead, Revolve Group has set a target range of net sales between $679 million and $703 million for fiscal 2020, reflecting a growth rate of 13% to 17%. The company also projects adjusted EBITDA to be in the range of $56 million to $61 million.

However, Revolve Group acknowledges that the current outbreak of the coronavirus in China may have a negative impact on its net sales. The company anticipates supply chain disruptions affecting its own brand and, to a lesser extent, third-party labels. Additionally, reduced consumer demand in China is also expected. Despite these challenges, co-founder and co-CEO Mike Karanikolas remains positive about the future of the company. He explained, “We are excited about our initiatives for 2020, which include building on the momentum in the Forward segment and International markets, as well as investing in the core Revolve segment. We plan to enhance our owned brands platform and continue innovating in marketing, technology, and customer experience.”

Useful links:
– For more information about Revolve Group and its products, visit their official website: Revolve
– To stay updated on the latest fashion trends and news, check out this fashion website: Vogue