LA-based fashion e-tailer Revolve has reported record profit in the first quarter of the year as US lockdown restrictions eased, stimulus checks were distributed, and demand for going-out clothes returned.
The company, which targets Millennial and Gen Z consumers, said net income hit 22.3 million dollars in the first quarter ended March 31, a year-over-year increase of 435 percent and more than four times greater than Q1 2019 net income.
Total net sales in the quarter increased 22.5 percent to 178.9 million dollar, compared to 146.1 million dollars a year ago when the pandemic was in full swing. Net sales at the company’s Revolve segment increased 22.2 percent to 152.2 million dollars, while its Forward segment grew 23.8 percent to 26.7 million dollars.
‘Going out’ fashion returns
It came as the US eased lockdown restrictions and the US federal government handed out stimulus payments in March 2021, resulting in a bounce-back in demand for categories associated with social outings, such as dresses, after a year of lockdowns.
The company said continued sales growth in at-home products such as beauty, intimates and activewear also helped sales growth.
“Our exceptional results for the first quarter reinforce our belief that Revolve is uniquely positioned for the reopening of economies and the post-Covid world as a brand consumers associate with living an active social lifestyle,” said co-founder and co-CEO Mike Karanikolas in a release. “We are excited to re-accelerate our investment in the business to support our next phase of growth.”
The second half of the co-founder, co-CEO duo, Michael Mente, said it was “particularly exciting” that the company’s strong recovery since March came from a rebound in styles associated with social outings, combined with continued strong growth in at home related products.
“Driven by our powerful brand, our proprietary technology, and our data driven merchandising, our results demonstrate great progress against our goal of developing a deeper relationship with our customer and capturing a larger share of her wallet over time,” Mente said.