Latest news with #MikeKaranikolas
Fibre2Fashion
7 days ago
- Business
- Fibre2Fashion
US' Revolve Q2 FY25 sales rise 9%, net income dips on one-off charges
American retailer Revolve Group has posted its second quarter (Q2) fiscal 2025 results, reporting a 9 per cent year-over-year (YoY) increase in net sales to $309 million, driven by growth in both Revolve and Fwrd segments. Gross profit also rose 9 per cent to $167.1 million, with gross margin improving slightly to 54.1 per cent, aided by a higher share of owned brand sales. The active customers rose 6 per cent to 2.74 million, with total orders placed growing 7 per cent. Despite these operational gains, net income fell 35 per cent to $10 million due to a swing in other income to a $2.9 million expense, higher foreign exchange losses, a $2.4 million non-cash charge from a subsidiary disposal, and an increased effective tax rate of 33.7 per cent. Revolve Group has reported a 9 per cent YoY rise in Q2 FY25 net sales to $309 million, with strong growth in both Revolve and Fwrd segments. Gross profit rose to $167.1 million, while net income dropped 35 per cent to $10 million. Adjusted EBITDA increased 12 per cent. The company raised its FY25 gross margin outlook and highlighted continued investment in AI, new brands, and retail expansion. Adjusted EBITDA improved 12 per cent YoY to $22.9 million, reflecting improved fulfilment and distribution efficiency. Diluted EPS dropped to $0.14 from $0.21 in Q2 FY24, Revolve said in a press release. The international net sales grew 17 per cent to $67.3 million, outpacing the 7 per cent growth in domestic sales. Cash and cash equivalents stood strong at $310.7 million, up 27 per cent YoY, with the company maintaining a debt-free balance sheet. Free cash flow for the quarter was $9.6 million. In Q2 FY25, the Revolve segment generated net sales of $268.4 million, marking a 9 per cent YoY increase. The Fwrd segment followed with $40.6 million in net sales, up 10 per cent. Domestically, sales reached $241.6 million, a 7 per cent rise, while international sales surged 17 per cent YoY to $67.3 million. 'This is our highest Adjusted EBITDA margin in three years, and our highest operating cash flow for any second quarter in the past four years,' said Mike Karanikolas co-founder and co-CEO at Revolve . 'I am especially proud of the team for delivering the strong second quarter results within such a volatile environment and amidst all the macro uncertainty surrounding tariff policy announcements in early April.' Looking ahead, Revolve expects gross margin for FY25 between 52.1 to 52.6 per cent—raised from the prior forecast of 50 to 52 per cent—while maintaining guidance for fulfilment, selling, and marketing expenses. The company also noted that July 2025 net sales grew approximately 7 per cent YoY. Revolve's Q3 FY25 guidance includes a gross margin between 51.2 and 51.7 per cent and G&A expenses of $38.5 million. 'Our ability to deliver profitable growth and market share gains in the second quarter, while at the same time continuing to invest in exciting long-term growth drivers, is a true reflection of the platform we have built, our operating excellence, and the team's ability to execute,' said Michael Mente, co-founder and co-CEO at Revolve . 'Importantly, our healthy cash flow generation gives us the capacity to continue to invest in exciting initiatives such as AI enhancements, developing new owned brands, physical retail exploration, and category expansion that collectively have the potential to accelerate our profitable growth and market share gains for years to come.' Fibre2Fashion News Desk (SG)
Yahoo
7 days ago
- Business
- Yahoo
Revolve's Q2 Sales Rise 9% as Customer Counts and Average Spend Both Rise
Revolve's bottom line took a tax-related hit in the second quarter, but the party-ready e-commerce company continued to show top-line growth. Revolve's second-quarter net income fell to $10 million from $15.4 million a year earlier, hit by the timing of certain tax items the company expected to record this quarter. More from WWD Ariana Greenblatt Curates '90s and Y2K-inspired Summer Collection With Revolve On Released a New Swiss-Inspired Sneaker Only Available at Revolve and Fwrd Halle Berry, Gabrielle Union, Jeannie Mai and More Stars Attend Oscars After Party Raising Funds for Eaton Wildfire Victims Still, diluted earnings per share of 13 cents came in 1 cent ahead of the 14 cents analysts had penciled in, according to Yahoo Finance. And adjusted earnings before interest, taxes, depreciation and amortization rose 12 percent to $22.9 million. Gross margins increased 4 basis points to 54.1 percent of sales, getting a boost from a higher mix of owned brands. Overall sales increased 9 percent to $309 million. Sales at the Revolve division also rose 9 percent to $268.4 million, while Fwrd was up 10 percent to $40.6 million. The company's top-line growth outpaced its active customer count, which rose to 2.7 million for the last 12 months, an increase of 6 percent. Cofounder and co-chief executive officer Mike Karanikolas told analysts on a conference call: 'Our customer base continues to increase and, on average, we are generating more revenue per active customer, helped by a lower return rate year-over-year in our successful efforts to capture a greater share of the consumer's wallet.' He also touted Revolve's international growth. While the business is still smaller abroad, at $67.3 million in sales in the quarter, that marked 17 percent growth. Michael Mente, cofounder and co-CEO, said the company — known for its high-profile events — is getting heard in a crowded market. 'Our brand-elevating Revolve Festival held in April set the tone for the second quarter by delivering significantly greater marketing impact of reduced spending year-over-year,' Mente said. 'Aspirational content from Revolve Festival in the Coachella Valley dominated social media feeds during the one-week period around our events.' Shares of Revolve rose 1.5 percent to $21 in after-hours trading on Tuesday. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
Yahoo
07-05-2025
- Business
- Yahoo
Revolve (NYSE:RVLV) Posts Q1 Sales In Line With Estimates But Stock Drops
Online fashion retailer Revolve (NASDAQ:RVLV) met Wall Street's revenue expectations in Q1 CY2025, with sales up 9.7% year on year to $296.7 million. Its GAAP profit of $0.16 per share was 14.7% above analysts' consensus estimates. Is now the time to buy Revolve? Find out in our full research report. Revolve (RVLV) Q1 CY2025 Highlights: Revenue: $296.7 million vs analyst estimates of $297.4 million (9.7% year-on-year growth, in line) EPS (GAAP): $0.16 vs analyst estimates of $0.14 (14.7% beat) Adjusted EBITDA: $19.3 million vs analyst estimates of $15.3 million (6.5% margin, 26.1% beat) Operating Margin: 5%, up from 3.4% in the same quarter last year Free Cash Flow Margin: 14.4%, up from 0.7% in the previous quarter Active Customers : 2.7 million, up 152,000 year on year Market Capitalization: $1.36 billion "I am very proud of our team's continued outstanding execution and flexibility that has driven our strong performance," said co-founder and co-CEO Michael Mente. Company Overview Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy. Sales Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Revolve grew its sales at a sluggish 5.1% compounded annual growth rate. This fell short of our benchmark for the consumer internet sector and is a tough starting point for our analysis. Revolve Quarterly Revenue This quarter, Revolve grew its revenue by 9.7% year on year, and its $296.7 million of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 7.9% over the next 12 months. While this projection suggests its newer products and services will fuel better top-line performance, it is still below average for the sector. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Active Customers Buyer Growth As an online retailer, Revolve generates revenue growth by expanding its number of users and the average order size in dollars. Over the last two years, Revolve's active customers , a key performance metric for the company, increased by 7.4% annually to 2.7 million in the latest quarter. This growth rate is slightly below average for a consumer internet business. If Revolve wants to reach the next level, it likely needs to enhance the appeal of its current offerings or innovate with new products.
Fashion Network
06-05-2025
- Business
- Fashion Network
Revolve sales up double-digits on growth across all channels
Revolve Group announced on Tuesday revenues for the first quarter rose 10% to $296.7 million, thanks to growth across all brand channels and geographies at the U.S. luxury retail firm. The Los Angeles-based company said Revolve segment sales were $254.4 million, a year-over-year increase of 11%, while sister brand Fwrd logged a 3% increase in sales to $42.3 million. By region, domestic sales were $239.2 million, up 9%, outpaced by international sales, which surged 12% to $57.5 million, for the quarter ending March 31. In line with the sales growth, the company said net income totalled $11.4 million, an increase from $10.9 million in the first quarter of 2024. "Our strong execution within a dynamic macro environment resulted in outstanding first quarter results, highlighted by double-digit top-line growth, 57% growth in operating income year-over-year, and $45 million in operating cash flow that further strengthened our balance sheet," said co-founder and co-CEO, Mike Karanikolas. "We achieved these strong results while continuing to invest in key initiatives that we believe will drive long-term success, which is especially important during this uncertain time when industry peers with weaker foundations are dialing back investment plans." The company said that post-first quarter, sales in April increased by a mid-single digit percentage year-over-year, highlighted by comparably stronger net sales growth in international markets. "I am very proud of our team's continued outstanding execution and flexibility that has driven our strong performance," said co-founder and co-CEO Michael Mente. "It is the strength of our team, our solid financial foundation and our flexibility that we believe position us well to navigate through the current geopolitical and macro-uncertainty while continuing to invest in the exciting growth opportunities ahead. We have consistently outperformed through challenging periods in the past and are entering this current cycle on strong footing, giving us the confidence not just to manage through the near-term challenges, but also to gain further market share and drive long-term gains."
Fashion Network
06-05-2025
- Business
- Fashion Network
Revolve sales up double-digits on growth across all channels
Revolve Group announced on Tuesday revenues for the first quarter rose 10% to $296.7 million, thanks to growth across all brand channels and geographies at the U.S. luxury retail firm. The Los Angeles-based company said Revolve segment sales were $254.4 million, a year-over-year increase of 11%, while sister brand Fwrd logged a 3% increase in sales to $42.3 million. By region, domestic sales were $239.2 million, up 9%, outpaced by international sales, which surged 12% to $57.5 million, for the quarter ending March 31. In line with the sales growth, the company said net income totalled $11.4 million, an increase from $10.9 million in the first quarter of 2024. "Our strong execution within a dynamic macro environment resulted in outstanding first quarter results, highlighted by double-digit top-line growth, 57% growth in operating income year-over-year, and $45 million in operating cash flow that further strengthened our balance sheet," said co-founder and co-CEO, Mike Karanikolas. "We achieved these strong results while continuing to invest in key initiatives that we believe will drive long-term success, which is especially important during this uncertain time when industry peers with weaker foundations are dialing back investment plans." The company said that post-first quarter, sales in April increased by a mid-single digit percentage year-over-year, highlighted by comparably stronger net sales growth in international markets. "I am very proud of our team's continued outstanding execution and flexibility that has driven our strong performance," said co-founder and co-CEO Michael Mente. "It is the strength of our team, our solid financial foundation and our flexibility that we believe position us well to navigate through the current geopolitical and macro-uncertainty while continuing to invest in the exciting growth opportunities ahead. We have consistently outperformed through challenging periods in the past and are entering this current cycle on strong footing, giving us the confidence not just to manage through the near-term challenges, but also to gain further market share and drive long-term gains."
