US fashion e-tailer Revolve has reported a 126 percent increase in net income for the fourth quarter of the year.
The company, which targets Millennial and Gen Z consumers, said net income reached 19 million dollars in the three months to December 31, compared to 8.4 million dollars a year earlier.
That was despite a 5 percent drop in sales to 140.8 million dollars.
The LA-based company’s gross margin increased by 305 basis points to 56 percent, the highest it’s ever recorded for a fourth quarter.
Record year at Revolve despite pandemic
“Our highly profitable fourth quarter capped a year of record net income and cash flow generation achieved despite the challenging Covid-19 backdrop,” said co-founder and co-CEO Michael Mente in a statement.
“Our 2020 results are a true testament to our team’s agility, highlighted by 57 million dollars in net income and 74 million dollars in operating cash flow, representing year-over-year increases of approximately 60 percent on both measures.”
For the full year, Revolve reported a 59 percent increase in net income to 56.8 million dollars, while net sales fell 3 percent to 580.6 million dollars.
Gross margin was 52.6 percent, a decrease of 99 basis points.
“We believe Revolve is well positioned to benefit from the reopening of economies, which will enable our customer to finally enjoy the active social lifestyle she loves and has come to associate with Revolve,” said co-founder and co-CEO Mike Karanikolas.
“With our cash position more than doubling during 2020 and a clean inventory position as we enter 2021, we are focused on capitalizing on the exciting opportunities ahead.”
Image: Revolve, Facebook