2023-05-03 16:12:50 ET
Revolve Group ( NYSE: RVLV ) reported a sales drop of 1% in Q1 to $279.6M even as the number of active customers rose 19% to 2.42M. Revolve segment sales were down 3% to $231.7M and FWRD segment sales rose 5% to $48.0M.
Domestic sales decreased 5% year-over-year and international net sales increased 16%.
Total orders place were up 6% for the quarter and the average order value was unchanged from a year ago at $288.
Gross margin was down 468 basis points to 49.8% of sales, primarily reflecting a lower mix of net sales at full price in the quarter. Net income was down 37% to $14.2M. RVLV noted the comparison that was impacted by the lower gross margin and an increase in operating expenses year-over-year, partially offset by an increase in other income due primarily to an insurance reimbursement. Adjusted EBITDA plunged 52% to $15.0M.
"Supported by our strong profitability and cash flow that truly stand out within the fashion e-commerce sector, we are continuing to innovate and leverage new technologies while executing on several important growth, brand-building and efficiency initiatives that we believe will further strengthen our foundation for profitable growth over the long term," said co-founder and co-CEO Michael Mente.
Shares of Revolve Group fell 7.85% in after-hours trading to $18.44.
More on Revolve Group:
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- Read more breakdowns on Revolve Group from Seeking Alpha analysts
- View the growth metrics
- See the financial and valuation comparisons to sector peers
- Dig into the Seeking Alpha Quant Rating
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Revolve Group slides after Q1 revenue trails estimates