The fashion retailer showed strong YoY growth, plans retail location in The Grove in 2025
Revolve Group, Inc. (NYSE: RVLV), a leading next-generation fashion retailer catering to Millennial and Generation Z consumers, announced impressive financial results for the fourth quarter and full year ended December 31, 2024. The company demonstrated strong growth, with substantial year-over-year increases in revenue, net income and adjusted EBITDA.
In addition, its limited-time Revolve retail location at Los Angeles’ The Grove will transition into a permanent space. Spanning 8,450 square feet, the two-story store will feature a handpicked collection of customer-favorite Revolve brands, a curated selection from FWRD and exclusive vintage and rare handbags from FWRD Renew.
Financial Performance Highlights
“We finished the year with an outstanding fourth quarter, highlighted by double-digit topline growth year-over-year and a more than doubling of net income and adjusted EBITDA year-over-year,” said co-founder and co-CEO Mike Karanikolas. “Notably, our business was strong across the board, with net sales increasing at a double-digit rate across Revolve, FWRD, domestic and international markets.”
Co-founder and co-CEO Michael Mente added, “Our team performed exceptionally well this year, optimizing marketing and logistics, reducing return rates, enhancing merchandising and product assortment, and improving site navigation for better product discovery. Importantly, we achieved these strong financial results while continuing to invest in strategic initiatives such as expanding our owned brands, integrating AI technology and exploring physical retail expansion.”
Fourth Quarter 2024 Financial Summary
• Net Sales: $293.7 million (14% YoY growth)
• Gross Profit: $154.3 million (15% YoY growth)
• Gross Margin: 52.5% (up from 52.0% in Q4 2023)
• Net Income: $11.8 million (237% YoY increase)
• Adjusted EBITDA: $18.3 million (114% YoY increase)
• Operating Cash Flow: $3.9 million (compared to -$3.9 million in Q4 2023)
• Free Cash Flow: $1.8 million (compared to -$5.0 million in Q4 2023)
Operational Metrics
• Active Customers: 2.67 million (5% YoY increase)
• Total Orders Placed: 2.17 million (7% YoY increase)
• Average Order Value (AOV): $301 (slightly down 1% from $303 in Q4 2023)
Key Business Insights and Trends
• Revolve Group’s fourth-quarter performance was driven by double-digit sales growth across all segments and geographies.
• REVOLVE Segment Sales: $252.0 million (15% YoY increase)
• FWRD Segment Sales: $41.8 million (11% YoY increase)
• Domestic Sales: $236.6 million (11% YoY increase)
• International Sales: $57.1 million (29% YoY increase)
The company also realized notable cost efficiencies, particularly in marketing, fulfillment, and selling and distribution expenses. These efficiencies, combined with gross margin expansion and strong revenue growth, resulted in a significant boost in net income and adjusted EBITDA.
2025 Business Outlook
Looking ahead, Revolve Group expects continued profitability and strategic investments to drive growth.
Full-Year 2025 Guidance
• Gross Margin: 52.4% to 52.9%
• Fulfillment Expenses: 3.0% to 3.2% of net sales
• Selling & Distribution Expenses: 17.0% to 17.2% of net sales
• Marketing Expenses: 14.9% to 15.1% of net sales
• General & Administrative Expenses: $155 million to $158 million
• Effective Tax Rate: 24% to 26%
Q1 2025 Guidance
• Gross Margin: 52.2% to 52.7%
• Fulfillment Expenses: 3.2% of net sales
• Selling & Distribution Expenses: 17.4% of net sales
• Marketing Expenses: 14.9% of net sales
• General & Administrative Expenses: $39.5 million
Continued Momentum in Early 2025 During the first seven weeks of 2025 (January 1 - February 18), Revolve Group reported net sales growth in the high single digits year-over-year, signaling strong momentum heading into the new year.
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