US fashion e-tailer Revolve reported record profits in the second quarter of this year, more than doubling from a year ago.
The Los Angeles-based fashion company posted a net profit of $ 31.5 million in the three months to June 30, an increase of 122% year-on-year and a 148% increase over two years ago.
The company’s net revenue to Millennial and Gen Z consumers was $ 228.6 million, up 60% from a year ago and 41% above 2019 levels.
Gross profit margin was 55.6%, an increase of 517 basis points year-on-year, benefiting from “healthy inventory and consumer demand dynamics”.
Adjusted EBITDA was $ 35.4 million, up 70% year-on-year and 87% above 2019 levels.
Co-founder and co-CEO Mike Karanikolas said the results resulted in record new customer additions and an unprecedented number of re-purchases from us for several quarters while social events were suspended. He said it was brought about by “activated customers.”
Regarding current transactions, the company said it was “encouraged” by the pace of reopening and economic recovery across the United States and in many of the major international markets.
July net sales increased by more than 40% compared to July 2019, both year-over-year and on a two-year growth basis.
However, the company warned that Covid-19 was “cautious” as it continued to negatively impact its business and net sales in some regions, and said, “The Covid-19 variant that recently affected certain regions. We are closely monitoring the development of the company. ”
Revolve reports record profits in the second quarter
Source link Revolve reports record profits in the second quarter