Revolve Group FY22 results reveal “record growth” in active customers

Revolve Group, the owners of Revolve and FWRD, have reported a 24% increase in sales during the 2022 fiscal year, despite seeing a "challenging" Q4.

Revolve, which was founded in 2003, displayed a struggling balance sheet during the fourth quarter of 2022. Net sales were up by 8% to £214.3 million ($259.2 million). Gross profit was up by 1% to £110.2 million ($133.3 million) and adjusted EBITDA stood at £11.7 million ($14.1 million), down 59%.

Despite the troubling three month period, ending 31 December 2022, the full financial year proved profitable for the online retailer.

2022 full-year results compared to the year prior include:

• Net sales up by 24% to £909.7 million ($1.1 billion)
• Gross profit up by 21% to £489.8 million ($592.3 million)
• Gross margin up by 53.8%
• Net income up by 41% to £48.5 million ($58.7 million)
• Adjusted EBITDA down by 21% to £74.6 million ($90.2 million)
• Active customers were up by a record 27%.

Revolve’s segment net sales were £762.2 million ($921.7 million), a year-on-year increase of 24%. FWRD's segment net sales were £148.6 million ($179.7 million), a year-over-year increase of 23%.

Domestic net sales increased 26% year-over-year and international net sales increased 13% year-over-year.

Michael Mente, Co-founder and Co-CEO, commented: "2022 was the 19th full year since Mike and I founded REVOLVE, and I'm proud of our financial performance and the accomplishments our team delivered in such a dynamic operating environment.

"Our net sales for the year increased 24% to $1.1 billion, we delivered record growth in active customers, and we generated significant profitably and cash flow that further strengthened our balance sheet."

Mike Karanikolas, Co-founder and Co-CEO, added: "While the macroenvironment has become more challenging in recent quarters, we have moved quickly and made progress in balancing our inventory investments while continuing to deliver profitable growth that truly stands out within our sector.

"We are more excited than ever about the opportunity that lies ahead. With our technology and data-driven culture, financial discipline, operational excellence and innovative team, we believe we are well positioned to continue to take market share."