Revolve income surges on strong sales growth across all channels

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.

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 income skyrocketed 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.