Revolve Group, Inc. reported a net sales increase of 9.7% for the first quarter of 2025, reaching $296.7 million compared to $270.6 million in the same period of 2024. The company's gross profit also rose to $154.3 million, resulting in a gross margin of 52.0%, slightly down from 52.3% year-over-year. Net income for the quarter was $11.4 million, or $0.16 per diluted share, compared to $10.9 million, or $0.15 per diluted share, in the prior year. The increase in revenue was attributed to a lower proportion of returned purchases and a 3.8% rise in the number of orders shipped, despite a 1.3% decrease in average order value.
In terms of operational metrics, Revolve's active customer count grew to 2.7 million, up from 2.6 million a year earlier, reflecting successful customer acquisition strategies. The total orders placed also increased to 2.3 million, compared to 2.2 million in the previous year. The company continues to focus on its two segments, REVOLVE and FWRD, with REVOLVE generating $254.4 million in net sales, a 10.8% increase, while FWRD saw a 3.3% increase to $42.4 million. The U.S. market remained the primary revenue driver, contributing 80.6% of total sales.
Revolve's balance sheet showed total assets of $713.9 million as of March 31, 2025, up from $665.5 million at the end of 2024. Cash and cash equivalents increased to $300.8 million, while accounts receivable rose to $16.8 million. The company's current liabilities also increased to $225.9 million, leading to a total stockholders' equity of $453.4 million, up from $437.8 million. The company reported a significant increase in its returns reserve, which rose to $78.5 million, reflecting the challenges of managing inventory and customer returns.
Looking ahead, Revolve faces several risks, including economic downturns, increased tariffs, and challenges in managing growth and inventory. The company has acknowledged that heightened tariffs, particularly on goods imported from China, could adversely impact its cost structure and pricing strategies. Despite these challenges, Revolve remains committed to expanding its international presence and enhancing its product offerings. The company plans to continue investing in its technology and logistics infrastructure to support growth and improve customer experience.
About Revolve Group, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.