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Sep 30, 2021
Revolve Q3 2021 Earnings Report
Announced third quarter 2021 financial results, featuring record quarterly net sales and increased customer engagement.
Key Takeaways
Revolve Group reported record quarterly net sales in Q3 2021, with a 62% increase year-over-year and a 58% increase compared to Q3 2019. The company saw increased customer engagement, including record quarterly growth in active customers. Net income was $16.7 million, a year-over-year decrease of 14% primarily attributable to increased investments in brand marketing initiatives.
Net sales increased by 62% year-over-year, reaching $244.1 million.
Gross margin was 55.1%, a slight decrease of 16 basis points year-over-year.
Net income decreased by 14% year-over-year to $16.7 million due to increased investments in brand marketing.
Active customers increased by 12% year-over-year to 1.678 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company's strong growth continued into the beginning of the fourth quarter, with net sales growth in October 2021 broadly in the range of the third quarter growth rate. However, the company remains guarded in its optimism due to COVID-19 and industry-wide supply chain challenges.
Positive Outlook
- Strong growth in the first three quarters of 2021 continued into the beginning of the fourth quarter.
- Net sales growth in October 2021 was broadly in the range of the third quarter growth rate.
- Excitement about recent momentum across the business.
- Encouraging growth in Active Customers during the third quarter of 2021.
- Brands are resonating well with next-generation consumers globally.
Challenges Ahead
- COVID-19 continues to present daily challenges.
- Industry-wide supply chain challenges persist.
- COVID-19 has negatively impacted certain aspects of operations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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