US fashion e-tailer Revolve has reported record profit in the second quarter of the year, more than doubling from a year ago.
The LA-based fashion company posted net income of 31.5 million dollars in the three months to June 30, 122 percent higher than the prior-year period and 148 percent higher than two years ago.
The company, which targets Millennial and Gen Z consumers, reported net sales of 228.6 million dollars, 60 percent higher than a year ago and 41 percent above 2019 levels.
Gross margin was 55.6 percent - a year-over-year increase of 517 basis points - benefiting from “healthy inventory and consumer demand dynamics”.
Adjusted EBITDA was 35.4 million dollars, a year-over-year increase of 70 percent, and 87 percent above 2019 levels.
Revolve sales in July up 40 percent
Co-founder and co-CEO Mike Karanikolas said the results were driven by record new customer additions and “unprecedented numbers of reactivated customers who hadn’t purchased from us in several quarters while social events were on pause”.
In terms of current trading, the company said it was “encouraged” by the pace of reopening and economic recovery across the US and in many of its key international markets.
It said net sales in July increased more than 40 percent on both a year-over-year basis and on a two-year growth basis versus July 2019.
But the company warned it remained “cautious” as Covid-19 continues to have a negative impact on its operations and on net sales in some regions and said it is “closely monitoring developments for Covid-19 variants that have recently impacted certain regions”.