Revolve Group has reported a drop in sales and profit in the second quarter of the year.
The US fashion retailer made net sales of 273.7 million dollars in the three months to June 30, a year-on-year decrease of 6 percent.
Sales at its Revolve segment fell 4 percent to 235.1 million dollars, while sales at its Fwrd segment fell 15 percent to 38.6 million dollars.
Domestic US sales, its biggest market, were hit by a drop in demand - down 7 percent to 222.9 million dollars, which was slightly offset by a 5 percent increase in international sales to 50.9 million dollars.
The group’s net profit for the quarter was slashed to 7.3 million dollars from 16.3 million dollars the prior year, which was primarily due to sales decline, reduction in gross profit, and continued pressure on certain operating expenses.
Commenting on the results, co-founder and co-CEO Mike Karanikolas said: “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.”
The group also announced its board has authorized a stock repurchase program of up to 100 million dollars of its Class A common stock.
Co-founder and co-CEO Michael Mente said: “While the current economic environment remains challenging, the 100 million dollars repurchase program underscores our confidence in our opportunity for continued profitable growth and market share capture over the long-term.”