Fashion retailer Revolve Group has generated $273.7m in net sales in the second quarter (Q2) of fiscal year (FY) 2023, down 6% compared to the corresponding period in FY22.
Sales of REVOLVE and FWRD segments decreased by 4% and 15% while domestic and international sales decreased by 7% and 4%, respectively, over the quarter.
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The retailer’s gross profit for the quarter ending 30 June 2023 was $147.7m, which is 9% behind last year’s figure.
Driven by a lower mix of net sales at full price during the quarter, Revolve’s gross margin decreased 198 basis points (bps) to 54.0%.
Its net income also decreased by 55% to $7.3m due to a fall in net sales, year-on-year gross profit and continued pressure on certain operating expenses.
The retailer’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for Q2 FY23 was $10.4m, representing a 61% decline.
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By GlobalDataIts diluted earnings per share (EPS) also fell 55% to $0.10 over the quarter.
During the quarter, the retailer saw its trailing 12-month active customers increase by 34,000 to 2,458,000.
Revolve Group co-founder and co-CEO Mike Karanikolas “Aspirational consumer discretionary spending remains challenging, particularly on goods in the US for our younger customer demographic, which is evident in our second quarter financial results.
“Regardless of macroeconomic challenges, we remain on offense and our team continues to deliver great progress on several important growth and efficiency initiatives that we believe will further strengthen our foundation for market share gains and profitable growth over the long term.”
In the full year of 2023, Revolve expects a gross margin in the range of 52% to 52.5%. It anticipates a gross margin of 52% to 52.3% in the third quarter.
