Revolve Group announced on Tuesday sales for the fourth quarter surged 14% to $293.7 million, on the back on double-digit sales growth across both Revolve and Fwrd brands, and domestically and overseas.
Revolve
The Los Angeles-based luxury retail group said sales at its namesake Revolve segment increased 15% to $250 million, almost outpaced by an 11% sales gain at sister retailer, Fwrd, to $41.8 million.
By region, quarterly domestic sales were $236.6 million, up 11%, while international sales surged 29% to $57.1 million, during the three months ending December 31, 2024.
Fourth-quarter net incomeskyrocketed 237% to $11.8 million, on the back of strong growth in sales, gross margin expansion, leverage on operating expenses year-over-year, and a lower effective tax rate in the fourth quarter of 2024, according to the luxury e-tailer.
Annual sales were $1.1 billion, a year-over-year increase of 6%.
“We finished the year with an outstanding fourth quarter, highlighted by double-digit top-line 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 year-over-year across Revolve, Fwrd, domestic and international.”
Michael Mente, co-founder and co-CEO, added: “The team performed exceptionally this year, delivering marketing and logistics efficiency gains, a meaningfully reduced return rate in the second half of the year, significant advancements in our merchandising and product assortment, and enhanced site navigation features that further elevate product discovery. Importantly, we achieved strong financial results while continuing to invest in key initiatives that we believe set us up well for profitable growth and market share gains over the long term, including expansion of owned brands, deploying AI technology and exploration of physical retail expansion.”
In a separate release on Tuesday, Revolve Group said that its limited-time-only Revolve holiday shop at Los Angeles’ The Grove will become a permanent store location this fall.
Last October, the retailer appointed South Korean-Canadian K-pop artist Jeon Somi as its first-ever global brand ambassador.
The Spanish fashion conglomerate Tendam has a new majority owner. Nine months after canceling its plans for an IPO in Spain, the investment vehicle of the Abu Dhabi royal family, Multiply Group, has acquired a 67% stake in the company from private equity firms CVC Capital Partners and PAI Partners. The deal values the company at over €1 billion, according to reports from the business daily Expansión.
Multiply Group acquires a 67% stake in Tendam, strengthening its presence in the global fashion market. – Tendam
The acquisition follows unsuccessful attempts to take Tendam public, as the market conditions failed to meet the expectations of CVC and PAI Partners. Both firms had been part of Tendam’s ownership since 2006, following a complex bidding war that also involved private equity firm Permira. In 2017, CVC and PAI Partners acquired Permira’s 33% stake, becoming the sole owners.
According to the same source, in addition to IPO attempts, CVC and PAI Partners had also explored other options for the company, including selling it to investors with an industrial profile or to the department store group El Corte Inglés.
Formerly known as Grupo Cortefiel, Tendam’s portfolio includes Women’secret, Springfield, Cortefiel, Pedro del Hierro, Hoss Intropia, Slowlove, High Spirits, Dash and Stars, OOTO, Milano, Fifty, and Hi&Bye. The group operates more than 1,760 points of sale across 80 countries, including standalone stores, department store corners, and franchises. It also maintains an online presence through over 33 websites.
What a difference a different colour and an Oscar-winning composer can make to a fashion show, as Gucci showed in its first post-Sabato De Sarno collection in Milan on Tuesday.
The debut show of the six-day Milan Fashion Week, the show and set were useful reminders of Gucci brand power, something far too many people have forgotten lately.
Gone was the deep purple that obsessed the banished creative director. Instead, the green room, invitations, curtains, and banquette seating inside the huge show space were hearty Castleton green. Even the catwalks were done in two massive interlocking green Gs.
A model walks the runway in Gucci’s Castleton green show space, reflecting a new direction for the house. – Photo Credits: Godfrey Deeny
Presented inside Superstudio Maxi, a giant party club in south Milan, the show was blessed with a fantastic original soundtrack by Justin Hurwitz, who won two Oscars for Best Original Song and Best Original Score for La La Land. He energetically conducted a live chamber orchestra before a front row, where Kering CEO and Gucci patron François-Henri Pinault sat beside Julia Garner, Jessica Chastain, Parker Posey, Jannik Sinner, Yara Shahidi, Dev Patel, Xiao Zhan, and Wen Qi—not bad going for a house without a designer.
A rousing performance that drove forward this show and collection, a cautious yet snappy array of Gucci hits over several decades created by the in-house design team. Ranging from ’60s fur and deep mohair peacoats; to knee-length skirts slit up the side, big-button tunics, or some perfectly cut Donegal tweed business suits. Dolce Vita damsels out for a stroll, certain to make heads turn.
Gucci’s runway featured rich textures and fluid silhouettes, blending heritage with modern elegance. – Photo Cresits: Godfrey Deeny
All the way to the 90s slip dresses, oversized coated blazers with peak collars, or bouclé wool mini cocktails. Best of all were the interlocking G-print velvet dresses and the semi-sheer skirts paired with velour leotards and worn with gold stirrup pendants, adding plenty of oomph. All this was worn with several new takes on the 1955 horse-bit bag that looked very commercial.
There was a time under Alessandro Michele, when the Gucci girl looked like she lived in Brooklyn. None of these girls looked like they ever took a subway.
Halfway through, the chamber orchestra changed rhythms and out came the menswear collection, featuring a sharp new double-breasted suit with an elongated jacket and slim pants, slashed at the back at the ankle and worn with natty leather slippers. Noting too awe-inspiring, but decent merch as were some great scrawny mohair cardigans. Though quite why there were six versions of the same coat, albeit in different materials was hard to comprehend.
Gucci’s menswear collection featured sleek tailoring with modern proportions and effortless elegance. – Photo Credits: Godfrey Deeny
“We wanted to make a brand statement,” said Gucci CEO Stefano Cantino. And the house most certainly did with an excellently staged show that ended with a score of young designers taking a joint bow at the bandstand. All dressed in Castleton green sweatshirts.
Despite it being one of those foggy days when clouds descend like lumpy porridge from the Alps and Milan looks very mournful, several thousand fans swarmed around outside, cheering each star as they exited. Gucci may have suffered several tricky years and seen revenues fall 20% in the most recent quarter, but judging by these fans; the label is still a major cult marque.
The house was mum about the eventual successor to De Sarno, though an announcement is expected in the next several weeks – with Hedi Slimane the designer with the shortest odds.
Business may have been weak but there is plenty of life in the house of Gucci.
Tougher laws on UK retail crime are taking their first steps through parliament today (Tuesday 25 February).
Pexels
The government’s Crime and Policing Bill, which will mostly apply in England and Wales, contains over 50 measures including stricter penalties for shoplifting of items under £200 and making it a new offence to assault a shop worker.
It also contains new ‘Respect Orders’, reminiscent of the Anti-social Behaviour Orders introduced by the last Labour government before being abolished in 2014.
Current laws don’t go far enough for shoplifting theft under £200 and such crimes can only be tried in a magistrates court.
Home secretary Yvette Cooper said: “The new Crime and Policing Bill is about taking back our streets and town centres, restoring respect for law and order, and giving the police and local communities the support and tools they need to tackle local crime.”
The British Retail Consortium warned in January that retail crime is “spiralling out of control”, hitting its highest level on record. Theft alone is now costing retailers £2.2 billion a year while violent and abusive incidents were up more than 50% last year. The crime prevention cost for stores is around £1.8 billion annually.