Revolve Group Inc (RVLV) Reports Q3 2023 Earnings: Net Sales Down 4%, Net Income Drops 73%
Revolve Group Inc (NYSE:RVLV) reports a 4% decrease in net sales and a 73% decrease in net income in Q3 2023
Active customers increased by 12% year-over-year, surpassing 2.5 million
Net cash provided by operating activities increased by 25% year-over-year
The company repurchased 907,219 shares of its Class A common stock during Q3 2023
Revolve Group Inc (NYSE:RVLV), a next-generation fashion retailer, announced its financial results for the third quarter ended September 30, 2023, on November 1, 2023. The company reported a decrease in net sales and net income, but saw an increase in net cash provided by operating activities.
Financial Performance
Revolve Group Inc (NYSE:RVLV) reported net sales of $257.6 million, a year-over-year decrease of 4%. Gross profit was $133.2 million, a year-over-year decrease of 6%. Net income was $3.2 million, a year-over-year decrease of 73%. Despite the decrease in net sales and net income, the company saw a 25% increase in net cash provided by operating activities, amounting to $12.5 million.
Active Customers and Orders
The company reported an increase of 12% year-over-year in active customers, surpassing 2.5 million. Total orders placed increased by 9% year-over-year. However, the average order value decreased by 7%.
Stock Repurchase and Cash Flow
Revolve Group Inc (NYSE:RVLV) repurchased 907,219 shares of its Class A common stock during the third quarter of 2023, at an average cost of $13.87 per share. The company reported a year-over-year increase of 33% in free cash flow, amounting to $11.5 million. As of September 30, 2023, the company had cash and cash equivalents of $266.9 million.
Outlook
Revolve Group Inc (NYSE:RVLV) provided an updated outlook for the full year ending December 31, 2023. The company expects gross margin to be between 51.8% to 51.9%, and fulfillment expenses to be 3.5% of net sales. Selling and distribution expenses are expected to be 18.7% of net sales, and marketing expenses to be between 16.2% to 16.3% of net sales.
Conclusion
Despite the challenging environment, Revolve Group Inc (NYSE:RVLV) continues to focus on driving improved results across a wide range of longer-term initiatives. The company remains debt-free and continues to leverage its core competencies of technology innovation, operating efficiency, and brand building.
Explore the complete 8-K earnings release (here) from Revolve Group Inc for further details.
This article first appeared on GuruFocus.
