Revolve segment net sales were $244.7 million, an increase of 30 percent year-over-year from $188.8 million in the year-ago period.įWRD saw net sales of $45.3 million, an increase of 14 percent year-over-year from $39.8 million. Net Sales: Total net sales were a record $290.1 million, an increase of 27 percent year-over-year over the $228.6 million taken in during the 2021 second quarter. Revolve’s balance sheet remains debt free. The Revolve brand generated a gross margin of 57.5 percent in the quarter, up from the 57 percent rate in the prior-year quarter, while the company’s luxury fashion segment FWRD had a gross margin of 47.2, down from the year-ago period’s 49.4 percent.Ĭash and cash equivalents as of Jwere $237.9 million, an increase of $18.3 million, from June 30, 2021. It was partially offset by inventory valuation adjustments due to the higher inventory levels. The margin increase is driven largely by strong full-price selling, a favorable mix shift and a higher owned-brands mix of net sales year-over-year. Gross margin was 55.9 percent, an increase of 29 basis points (0.29 percentage points) year-over-year from last year’s 55.6 percent margin, marking the company’s highest-ever gross margin for a second quarter. It’s not going to be 100 percent of the inventory, but there is a small impact there.” “Over time the benefits will be on the outbound, being able to shift to customers closer from that distribution center, versus shipping all the way from L.A. Revolve will have more room to complete this balancing act after opening its first East Coast warehouse in Shoemakersville, Pa. While we feel good about the quality of inventory, the overall balance is elevated, and we are working diligently to bring it back in balance.” “However, with the demand trend shifting during the second quarter, as discussed, our inventory balance ended the quarter in a place that is higher than we would like. “Our inventory investments are reflective of our efforts to keep pace with the robust consumer demand we had experienced over the past several quarters,” Timmermans said in the call. Inventory was $208.5 million, an increase of 75 percent from the inventory balance of $118.8 million as of June 30, 2021. He also indicated that the company is factoring in that return rates will remain elevated throughout 2022. In particular, Revolve experienced a higher return rate year-over-year with normalizing product mix being a key contributor as dresses grew to 32 percent of net sales in the second quarter of 2022 from 24 percent in the second quarter of 2021.Ĭhief financial officer Jesse Timmermans said the return rates are trending above 2019 levels.
Fuel surcharges in the second quarter were more than 4x what they were in the prior year, and increased 60 percent for the first quarter. Mike Kazanikolas, co-CEO, co-founder, and chairman of the board at Revolve, said in an earnings call that cost pressures came largely from customer shipping expenses, specifically higher return rates and fuel surcharges. Madewell Focuses on Regenerative Cotton and Bluesign-Approved Denim The company saw quarterly growth of approximately 124,000 active customers during the second quarter of 2022, the highest ever for a second quarter. While sales growth has slowed, Revolve is doing better in acquiring customers. “We believe these customers are likely to pull back in spending in the near term as macro uncertainties loom.” “We estimate that Revolve’s average household income could fall in the $60k-$75k range, and core customers are aspirational shoppers who typically allocate an outsized portion to discretionary apparel,” Oliver Chen, senior equity research analyst at Cowen, wrote in a research note. In a Nutshell: In previewing the third quarter, net sales in July increased approximately 10 percent year-over-year amid the current uncertain macroeconomic environment, with the millennial and Gen Z-loved fashion brand referring to both inflation and low consumer sentiment as factors slowing growth.
Revolve stock was trading down 13.03 percent Thursday afternoon at $26.91 per share. Stock dropped more than 16 percent in after-hours trading on Wednesday after sales and earnings per share both missed Wall Street projections in the wake of increased cost pressures related to return rates and fuel surcharges. Revolve saw a record $290.1 million in net sales in the second quarter, increasing 27 percent year-over-year on net income of $16.3 million.
0 kommentar(er)
