Revolve Group Announces Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Revolve Group (NYSE: RVLV) reported strong Q4 2024 results with notable growth across all segments. Total net sales reached $293.7 million, up 14% year-over-year, while net income surged 237% to $11.8 million. The company's gross margin improved to 52.5%, up 53 basis points.

Key Q4 metrics include:

• REVOLVE segment: $252.0M (+15% YoY)
• FWRD segment: $41.8M (+11% YoY)
• Domestic sales: $236.6M (+11% YoY)
• International sales: $57.1M (+29% YoY)
• Active customers: 2.67M (+5% YoY)

For full-year 2024, total net sales grew 6% to $1.1 billion, with net income up 73% to $48.8 million. The company maintains a strong balance sheet with $256.6M in cash and remains debt-free. Early 2025 performance shows high single-digit growth in net sales.

Positive

• Net income surged 237% YoY in Q4
• 14% revenue growth across all segments in Q4
• 29% international sales growth in Q4
• 52.5% gross margin, up 53 basis points
• Debt-free balance sheet with $256.6M cash
• Active customers grew by 40,000 in Q4

Negative

• FWRD segment declined 3% for full-year 2024
• Operating cash flow decreased 38% YoY
• Free cash flow dropped 54% YoY
• Inventory increased 13% YoY to $229.2M

Insights

Financial Analyst

Revolve Group's Q4 2024 results demonstrate exceptional execution and acceleration in both growth and profitability metrics, significantly outperforming expectations. The 14% year-over-year revenue growth to $293.7 million shows meaningful acceleration from Q3's 10% growth rate, indicating strengthening momentum as the company closed out 2024.

What's particularly impressive is the balanced nature of this growth across all business segments. Both the core REVOLVE segment (15% growth) and luxury-focused FWRD segment (11% growth) delivered double-digit increases, suggesting the company's multi-tier strategy is resonating across price points. The geographic diversification is equally compelling, with international markets surging 29% year-over-year – nearly triple the domestic growth rate of 11%. This international expansion represents a significant long-term opportunity as it currently accounts for just 20% of total sales.

The profitability improvements are even more striking than the revenue growth. Q4 net income soared 237% to $11.8 million while Adjusted EBITDA more than doubled to $18.3 million. These gains reflect both gross margin expansion (up 53 basis points to 52.5%) and substantial operational efficiencies. The improved return rates mentioned by management are particularly significant, as each percentage point reduction in returns flows directly to the bottom line by reducing shipping, processing, and inventory costs.

Inventory management appears disciplined, with the 13% year-over-year inventory increase slightly below the 14% Q4 sales growth. This alignment suggests the company is maintaining appropriate stock levels without excess accumulation, critical for a fashion retailer where inventory obsolescence risks are high.

The strategic initiatives outlined – expansion of owned brands, AI technology deployment, and physical retail exploration – represent a multi-pronged approach to sustaining growth. The owned brand strategy is particularly important as it typically delivers higher margins than third-party merchandise while strengthening brand loyalty. Meanwhile, the company's strong balance sheet ($256.6 million in cash, no debt) provides ample flexibility to pursue these growth initiatives while continuing share repurchases.

While the high single-digit growth reported for early 2025 represents some deceleration from Q4's 14% pace, it still outperforms much of the specialty retail sector, which continues to face consumer spending headwinds. Revolve's digital-first model and targeted focus on millennial and Gen Z consumers positions it well to continue gaining market share in a challenging retail environment.

Retail Industry Expert

Revolve Group's Q4 2024 results represent a remarkable acceleration in both growth trajectory and profitability metrics, positioning the company as an outperformer in the challenging specialty retail landscape. The 14% revenue growth significantly outpaces most comparable contemporary fashion retailers, many of whom are struggling to achieve even low-single-digit growth in the current consumer environment.

What's particularly impressive is the company's ability to drive balanced growth across all business segments simultaneously – a rarity in retail where companies typically see strength in some channels offset by weakness in others. The 15% growth in the core REVOLVE segment alongside 11% growth in the luxury-focused FWRD business demonstrates effective multi-tier positioning across price points. Similarly, the geographic diversification shows exceptional execution, with international markets surging 29% while domestic growth remained robust at 11%.

The dramatic profitability expansion – with net income up 237% and Adjusted EBITDA increasing 114% – reflects structural improvements rather than one-time gains. Management highlighted three key operational enhancements driving this leverage: marketing efficiency improvements, logistics optimization, and a "meaningfully reduced return rate" in the second half of 2024. This last factor is particularly significant in fashion e-commerce, where return rates typically range from 25-40% and each percentage point reduction flows directly to the bottom line.

Inventory management appears disciplined with the 13% year-over-year increase slightly below the 14% sales growth rate – a positive indicator in an industry where inventory misalignment frequently erodes margins. This suggests the company's merchandising analytics and demand forecasting capabilities are functioning effectively, minimizing markdown risk.

The exploration of physical retail expansion represents a potentially significant strategic evolution for Revolve. While digital-native brands often struggle with the operational complexities and capital requirements of brick-and-mortar expansion, selective physical locations could enhance brand awareness, reduce customer acquisition costs, and decrease return rates by allowing customers to experience products before purchase. The success of this initiative will depend heavily on site selection, format development, and integration with the existing digital ecosystem.

The company's focus on owned brand expansion has substantial margin enhancement potential. Vertically integrated products typically carry gross margins 15-20% higher than third-party merchandise while strengthening brand differentiation and customer loyalty. Combined with the AI technology deployment mentioned by management – likely focused on personalization, inventory optimization, and marketing efficiency – these initiatives position Revolve for continued market share gains despite the slight deceleration indicated by the high single-digit growth reported for early 2025.

E-commerce Strategist

Revolve Group's Q4 2024 results showcase exceptional execution across both growth and profitability dimensions, with the company's digital-first strategy clearly resonating with its Millennial and Gen Z target demographic. The 14% revenue growth to $293.7 million represents significant acceleration from Q3 and substantially outperforms the broader specialty apparel sector, where many competitors are struggling to achieve even low single-digit growth amid challenging consumer spending patterns.

The company's multi-channel growth strategy is delivering impressive results across all segments. The core REVOLVE business grew 15%, while the luxury-focused FWRD segment increased 11% – demonstrating effective positioning across price tiers despite differing market dynamics. The geographic diversification strategy is proving particularly effective, with international markets surging 29% compared to 11% domestic growth. This international expansion represents a substantial long-term opportunity as cross-border e-commerce continues to gain traction.

What's most remarkable about these results is the dramatic profitability expansion that accompanied the revenue growth. The 237% increase in net income and 114% growth in Adjusted EBITDA reflect structural improvements in the operating model rather than temporary gains. Management highlighted three key operational enhancements driving this leverage:

• Marketing efficiency improvements, likely reflecting more sophisticated attribution modeling and channel optimization
• Logistics and fulfillment optimizations, reducing per-order handling costs
• A "meaningfully reduced return rate" in the second half of 2024 – a critical metric in fashion e-commerce where returns typically represent 25-40% of orders and significantly impact profitability

The company's inventory management appears exceptionally disciplined with 13% year-over-year growth slightly below the 14% sales growth rate. This alignment is particularly impressive in fashion retail, where inventory mismanagement frequently leads to margin erosion through markdowns. The synchronization suggests Revolve's data-driven merchandising approach and demand forecasting capabilities are functioning effectively.

The strategic initiatives outlined by management position Revolve for continued differentiation in an increasingly competitive landscape. The owned brand expansion enhances margin potential while creating proprietary products unavailable elsewhere. The AI technology deployment likely targets three critical areas: personalization algorithms to improve conversion rates, inventory optimization to reduce stockouts and overstocks, and marketing efficiency enhancements to lower customer acquisition costs.

Perhaps most intriguing is the exploration of physical retail opportunities, representing a potential evolution beyond Revolve's digital-native roots. While brick-and-mortar expansion introduces operational complexity and capital requirements, selective physical locations could enhance brand awareness, create immersive experiences aligned with Revolve's lifestyle positioning, and potentially reduce return rates by allowing customers to experience products before purchase – addressing one of the fundamental challenges of online fashion retail.

LOS ANGELES, Feb. 25, 2025 /PRNewswire/ -- Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the fourth quarter and full year ended December 31, 2024.

"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."

"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," said co-founder and co-CEO Michael Mente. "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." 

Fourth Quarter 2024 Financial Summary

		Three Months Ended December 31,
		2024				2023				YoY Change
		(in thousands, except percentages)
Net sales		$	293,728			$	257,778			14 %
Gross profit		$	154,298			$	134,049			15 %
Gross margin			52.5	%			52.0	%
Net income		$	11,770			$	3,494			237 %
Adjusted EBITDA (non-GAAP financial measure)		$	18,272			$	8,538			114 %
Net cash provided by (used in) operating activities		$	3,918			$	(3,876)			NM
Free cash flow (non-GAAP financial measure)		$	1,831			$	(4,960)			NM

NM – not meaningful

Fourth Quarter 2024 Operational Metrics

		Three Months Ended December 31,
		2024				2023				YoY Change
		(in thousands, except average order value and percentages)
Active customers			2,668				2,543			5 %
Total orders placed			2,172				2,022			7 %
Average order value		$	301			$	303			(1 %)

Additional Fourth Quarter 2024 Metrics and Results Commentary 

• Trailing 12-month Active customers increased by 40,000 during the fourth quarter of 2024, growing to 2,668,000 as of December 31, 2024, an increase of 5% year-over-year.
• Total net sales were $293.7 million, an increase of 14% year-over-year, and a sequential improvement from the 10% increase year-over-year reported in the third quarter of 2024.
• Gross profit was $154.3 million, an increase of 15% year-over-year.
• Gross margin was 52.5%, a year-over-year increase of 53 basis points that was primarily driven by margin expansion in the FWRD segment.
• We achieved meaningful year-over-year efficiencies in our operating expenses, driven by strong efficiencies in our marketing, fulfillment, and selling and distribution expenses compared to the prior-year period, partially offset by growth in general and administrative expenses as a percentage of net sales year-over-year. General and administrative expenses for the fourth quarter of 2024 include $2.7 million in non-routine items excluded from Adjusted EBITDA, as explained further below in the non-GAAP reconciliation tables and accompanying disclosures in this press release. General and administrative expenses for the fourth quarter of 2023 include $3.4 million in non-routine items excluded from Adjusted EBITDA.
• Net income was $11.8 million, a year-over-year increase of 237%, primarily due to strong growth in net sales, gross margin expansion, leverage on operating expenses year-over-year, and a lower effective tax rate in the fourth quarter of 2024.
• Adjusted EBITDA was $18.3 million, a year-over-year increase of 114%.
• Diluted earnings per share (EPS) was $0.17, a year-over-year increase of 240%.

Additional Fourth Quarter 2024 Net Sales Commentary

Net sales increased by a double-digit rate year-over-year across segments and geographies.

• REVOLVE segment net sales were $252.0 million, a year-over-year increase of 15%.
• FWRD segment net sales were $41.8 million, a year-over-year increase of 11%.
• Domestic net sales were $236.6 million, a year-over-year increase of 11%.
• International net sales were $57.1 million, a year-over-year increase of 29%.

Additional trend information regarding Revolve Group's fourth quarter and full year 2024 financial results and operating metrics is available in the Q4 and FY 2024 Financial Highlights presentation available on the company's investor relations website at https://investors.revolve.com. 

Results Since the End of Fourth Quarter 2024

During the first seven weeks of 2025 (January 1, 2025 to February 18, 2025), net sales increased by a high single-digit percentage year-over-year compared to the same period in 2024.    

2025 Business Outlook

Based on information available to us as of February 25, 2025, we are providing the following guidance for the full year ending December 31, 2025 and the first quarter ending March 31, 2025.  

	FY 2025 Outlook
Gross margin	52.4% to 52.9%
Fulfillment expenses	3.0% to 3.2% of net sales
Selling and distribution expenses	17.0% to 17.2% of net sales
Marketing expenses	14.9% to 15.1% of net sales
General and administrative expenses	$155 million to $158 million
Effective tax rate	24% to 26%
	First Quarter 2025 Outlook
Gross margin	52.2% to 52.7%
Fulfillment expenses	3.2% of net sales
Selling and distribution expenses	17.4% of net sales
Marketing expenses	14.9% of net sales
General and administrative expenses	$39.5 million

Full Year 2024 Financial Summary

		Year Ended December 31,
		2024				2023				YoY Change
		(in thousands, except percentages)
Net sales		$	1,129,911			$	1,068,719			6 %
Gross profit		$	593,273			$	554,199			7 %
Gross margin			52.5	%			51.9	%
Net income		$	48,771			$	28,147			73 %
Adjusted EBITDA (non-GAAP financial measure)		$	69,516			$	43,409			60 %
Net cash provided by operating activities		$	26,692			$	43,342			(38 %)
Free cash flow (non-GAAP financial measure)		$	18,005			$	39,144			(54 %)

Full Year 2024 Operational Metrics

		Year Ended December 31,
		2024				2023				YoY Change
		(in thousands, except average order value and percentages)
Active customers			2,668				2,543			5 %
Total orders placed			8,867				8,701			2 %
Average order value		$	302			$	297			2 %

Additional Full Year 2024 Metrics and Results Commentary

• Total net sales were $1.1 billion, a year-over-year increase of 6%.
• Gross profit was $593.3 million, a year-over-year increase of 7%.
• Gross margin was 52.5%, a year-over-year increase of 65 basis points.
• Net income was $48.8 million, a year-over-year increase of 73%, primarily reflecting the increase in net sales, gross margin expansion and leverage on operating expenses year-over-year.
• Adjusted EBITDA was $69.5 million, a year-over-year increase of 60%.
• Diluted EPS was $0.69, a year-over-year increase of 82%.

Additional Full Year 2024 Net Sales Commentary

• REVOLVE segment net sales were $970.5 million, a year-over-year increase of 7%.
• FWRD segment net sales were $159.4 million, a year-over-year decrease of 3%.
• Domestic net sales were $903.5 million, a year-over-year increase of 4%.
• International net sales were $226.4 million, a year-over-year increase of 14%.

Cash Flow and Balance Sheet Commentary   

• Net cash provided by operating activities was $26.7 million and free cash flow was $18.0 million for the year ended December 31, 2024, a decrease of 38% and 54%, respectively. The decrease in both cash flow measures primarily reflects unfavorable movements in working capital, partially offset by higher net income.
• Stock repurchases were $11.8 million for the year ended December 31, 2024, exclusive of broker fees and excise taxes. The company repurchased 767,198 shares of its Class A common stock during the full year 2024, at an average cost of $15.35. $57.6 million remained available under the company's $100 million stock repurchase program as of December 31, 2024.
• Balance sheet: Cash and cash equivalents as of December 31, 2024 grew to $256.6 million, an increase of $11.2 million, or 5%, from $245.4 million as of December 31, 2023. Our balance sheet as of December 31, 2024 remains debt free.
• Inventory as of December 31, 2024 was $229.2 million, an increase of $25.7 million, or 13%, from the inventory balance of $203.6 million as of December 31, 2023. The increase in inventory balance year-over-year was slightly lower than our 14% year-over-year growth in net sales during the fourth quarter of 2024.

Conference Call Information
Revolve Group management will host a call today at 4:30 pm ET / 1:30 pm PT to discuss today's results in more detail.  To participate, please dial  (888) 596-4144 within the United States or (646) 968-2525 outside the United States approximately 10 minutes before the scheduled start of the call. The conference ID for the call is 2756104. The conference call will also be accessible, live via audio broadcast, on the Investor Relations section of the Revolve Group website at http://investors.revolve.com. A replay of the conference call will be available online at http://investors.revolve.com. In addition, an audio replay of the call will be available for one week following the call and can be accessed by dialing 1-800-770-2030 within the United States or (609) 800-9909 outside the United States. The replay conference ID is 2756104. 

Forward-Looking Statements

This press release contains ''forward-looking statements'' within the meaning of the safe harbor provisions of the U.S.  Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our growth prospects and market share gains, expansion of owned brands, deployment of AI technology, expansion of physical retail and outlook for the first quarter and full year of 2025. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to changing economic conditions and their impact on consumer demand and our business, operating results and financial condition; demand for our products; supply chain challenges; the effect of tariffs; inflationary pressures; wars and conflicts in  Ukraine/Russia, Israel/Gaza and the Middle East; other geopolitical tensions; our fluctuating operating results; seasonality in our business; our ability to acquire products on reasonable terms; our e-commerce business model; our ability to attract customers in a cost effective manner; the strength of our brand; competition; fraud; system interruptions; our ability to fulfill orders; the impact of public health crises on our business, operations and financial results; the effect of claims, lawsuits, government investigations, other legal or regulatory proceedings or commercial or contractual disputes; and other risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, or SEC, including, without limitation, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and our Annual Report on Form 10-K for the year ended December 31, 2024, which we expect to file with the SEC on February 25, 2025. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Use of Non-GAAP Financial Measures and Other Operating Metrics

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: Adjusted EBITDA and free cash flow.    

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this release. We encourage reviewing the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items.

Definitions of our non-GAAP financial measures and other operating metrics are presented below. 

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other (income) expense, net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense, certain transaction costs and certain non-routine items. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes an item that we do not consider to be indicative of our core operating performance.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used in purchases of property and equipment, and purchases of rental product. We view free cash flow as an important indicator of our liquidity because it measures the amount of cash we generate. Free cash flow also reflects changes in working capital.

Active Customers

We define an active customer as a unique customer account from which a purchase was made across our platform at least once in the preceding 12-month period. In any particular period, we determine our number of active customers by counting the total number of customers who have made at least one purchase in the preceding 12-month period, measured from the last date of such period. We view the number of active customers as a key indicator of our growth, the reach of our sites, the value proposition and consumer awareness of our brand, the continued use of our sites by our customers and their desire to purchase our products.

Total Orders Placed

We define total orders placed as the total number of orders placed by our customers, prior to product returns, across our platform in any given period.  We view total orders placed as a key indicator of the velocity of our business and an indication of the desirability of our products and sites to our customers. Total orders placed, together with average order value, is an indicator of the net sales we expect to recognize in a given period.

Average Order Value

We define average order value as the sum of the total gross sales from our sites in a given period, prior to product returns, divided by the total orders placed in that period. We believe our high average order value demonstrates the premium nature of our product assortment. Average order value varies depending on the site through which we sell merchandise, the mix of product categories sold, the number of units in each order, the percentage of sales at full price, and for sales at less than full price, the level of markdowns.

About Revolve Group, Inc.

Revolve Group, Inc. (NYSE: RVLV) is the next-generation fashion retailer for Millennial and Generation Z consumers. As a trusted premium lifestyle brand and a go-to online source for discovery and inspiration, we deliver an engaging customer experience from a vast yet curated offering of apparel, footwear, accessories, beauty and home products. Our dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers and more than 1,000 emerging, established and owned brands.

We were founded in 2003 by our co-CEOs, Michael Mente and Mike Karanikolas. We sell merchandise through two complementary segments, REVOLVE and FWRD, that leverage one platform. Through REVOLVE, we offer an assortment of premium apparel, footwear, accessories and beauty products from emerging, established and owned brands. Through FWRD, we offer an assortment of curated and elevated iconic and emerging luxury brands.  For more information, visit www.revolve.com. 

Contacts:

Investors:

Erik Randerson, CFA
562.677.9513
IR@revolve.com 

Media:

Jennifer Walker
revolve@walkerdrawas.com 

REVOLVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net sales		$	293,728			$	257,778			$	1,129,911			$	1,068,719
Cost of sales			139,430				123,729				536,638				514,520
Gross profit			154,298				134,049				593,273				554,199
Operating expenses:
Fulfillment			9,456				8,997				37,389				36,654
Selling and distribution			48,359				45,776				195,169				197,052
Marketing			43,326				42,353				167,176				171,774
General and administrative			41,756				34,724				142,122				126,585
Total operating expenses			142,897				131,850				541,856				532,065
Income from operations			11,401				2,199				51,417				22,134
Other income, net			(3,246)				(2,677)				(13,030)				(15,627)
Income before income taxes			14,647				4,876				64,447				37,761
Provision for income taxes			2,877				1,382				15,676				9,614
Net income			11,770				3,494				48,771				28,147
Less: Net loss attributable to non-controlling interest			566				—				786				—
Net income attributable to Revolve Group, Inc. stockholders		$	12,336			$	3,494			$	49,557			$	28,147
Earnings per share of Class A and Class B    common stock:
Basic		$	0.17			$	0.05			$	0.70			$	0.39
Diluted		$	0.17			$	0.05			$	0.69			$	0.38
Weighted average number of shares of Class A and Class B common stock outstanding:
Basic			70,975				71,782				70,846				72,961
Diluted			72,135				72,171				71,677				73,583

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
		December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	256,600			$	245,449
Accounts receivable, net			10,338				12,405
Inventory			229,244				203,587
Income taxes receivable			1,195				1,625
Prepaid expenses and other current assets			63,711				65,523
Total current assets			561,088				528,589
Property and equipment (net of accumulated depreciation of $22,230 and $17,994    as of December 31, 2024 and December 31, 2023, respectively)			8,937				7,763
Right-of-use lease assets			36,259				36,440
Intangible assets, net			2,294				1,875
Goodwill			2,042				2,042
Other assets			18,067				2,172
Deferred income taxes, net			36,860				30,005
Total assets		$	665,547			$	608,886
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	45,098			$	47,821
Income taxes payable			4				—
Accrued expenses			38,524				40,714
Returns reserve			69,661				63,780
Current lease liabilities			9,066				6,863
Other current liabilities			33,744				30,442
Total current liabilities			196,097				189,620
Non-current lease liabilities			31,665				34,126
Total liabilities			227,762				223,746
Stockholders' equity:
Class A common stock, $0.001 par value; 1,000,000,000 shares    authorized as of December 31, 2024 and December 31, 2023;    39,699,150 and 38,693,589 shares issued and outstanding as of December 31, 2024    and December 31, 2023, respectively.			40				39
Class B common stock, $0.001 par value; 125,000,000 shares authorized    as of December 31, 2024 and December 31, 2023; 31,501,330 and    32,597,119 shares issued and outstanding as of December 31, 2024 and    December 31, 2023, respectively.			32				33
Additional paid-in capital			133,046				116,713
Retained earnings			305,070				268,355
Non-controlling interest			(403)				—
Total stockholders' equity			437,785				385,140
Total liabilities and stockholders' equity		$	665,547			$	608,886

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
		Year Ended December 31,
		2024				2023
Operating activities:
Net income		$	48,771			$	28,147
Adjustments to reconcile net income to net cash provided by operating    activities:
Depreciation and amortization			4,429				5,094
Rental product depreciation			736				—
Equity-based compensation			10,028				5,839
Deferred income taxes, net			(6,855)				(5,251)
Changes in operating assets and liabilities:
Accounts receivable			2,067				(6,984)
Inventories			(24,791)				11,637
Income taxes receivable			430				1,349
Prepaid expenses and other current assets			1,812				(5,649)
Other assets			(13,593)				(1,365)
Accounts payable			(2,723)				(2,968)
Income taxes payable			4				(229)
Accrued expenses			(2,190)				2,448
Returns reserve			5,881				399
Right-of-use lease assets and current and non-current lease liabilities			(77)				3,010
Other current liabilities			2,763				7,865
Net cash provided by operating activities			26,692				43,342
Investing activities:
Purchases of property and equipment			(5,649)				(4,198)
Purchases of rental product			(3,038)				—
Cash paid for acquisition			(427)				—
Net cash used in investing activities			(9,114)				(4,198)
Financing activities:
Proceeds from the exercise of stock options, net			6,415				536
Repurchases of Class A common stock			(11,778)				(30,913)
Net cash (used in) provided by financing activities			(5,363)				(30,377)
Effect of exchange rate changes on cash and cash equivalents			(1,064)				1,958
Net increase in cash and cash equivalents			11,151				10,725
Cash and cash equivalents, beginning of period			245,449				234,724
Cash and cash equivalents, end of period		$	256,600			$	245,449
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes, net of refund		$	22,203			$	12,995
Operating leases		$	9,305			$	7,012
Supplemental disclosure of non-cash activities:
Lease assets obtained in exchange for new operating lease liabilities		$	7,180			$	20,452

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
The following table summarizes our net sales, cost of sales and gross profit for each of our reportable segments (in thousands):
		Three Months Ended December 31,								Year Ended December 31,
Net sales		2024				2023				2024				2023
REVOLVE		$	251,972			$	220,025			$	970,517			$	904,525
FWRD			41,756				37,753				159,394				164,194
Total		$	293,728			$	257,778			$	1,129,911			$	1,068,719
Cost of sales
REVOLVE		$	114,416			$	98,682			$	435,918			$	412,708
FWRD			25,014				25,047				100,720				101,812
Total		$	139,430			$	123,729			$	536,638			$	514,520
Gross profit
REVOLVE		$	137,556			$	121,343			$	534,599			$	491,817
FWRD			16,742				12,706				58,674				62,382
Total		$	154,298			$	134,049			$	593,273			$	554,199
The following table lists net sales by geographic area (in thousands):
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
United States		$	236,644			$	213,658			$	903,484			$	870,405
Rest of the world			57,084				44,120				226,427				198,314
Total		$	293,728			$	257,778			$	1,129,911			$	1,068,719

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
KEY OPERATING AND FINANCIAL METRICS
(Unaudited)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
		(in thousands, except average order value and percentages)
Gross margin			52.5	%			52.0	%			52.5	%			51.9	%
Adjusted EBITDA		$	18,272			$	8,538			$	69,516			$	43,409
Free cash flow		$	1,831			$	(4,960)			$	18,005			$	39,144
Active customers			2,668				2,543				2,668				2,543
Total orders placed			2,172				2,022				8,867				8,701
Average order value		$	301			$	303			$	302			$	297

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
A reconciliation of non-GAAP Adjusted EBITDA to net income for the three months and year ended December 31, 2024 and 2023 is as follows:
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
		(in thousands)
Net income		$	11,770			$	3,494			$	48,771			$	28,147
Excluding:
Other income, net			(3,246)				(2,677)			$	(13,030)				(15,627)
Provision for income taxes			2,877				1,382			$	15,676				9,614
Depreciation and amortization			928				1,342			$	4,429				5,094
Equity-based compensation			3,277				1,610			$	10,028				5,839
Transaction costs (1)			700				—			$	1,194				—
Non-routine items (2)			1,966				3,387			$	2,448				10,342
Adjusted EBITDA		$	18,272			$	8,538			$	69,516			$	43,409

(1)	Includes legal and professional service fees related to potential and consummated strategic acquisitions and investments.
(2)	Non-routine items in the three months and year ended December 31, 2024 included a $2.0 million non-routine loss related to a shipment theft incident, which we expect to recover in full through our insurance in future periods. Non-routine items for the year ended December 31, 2024 also included a $0.5 million charge for a settled matter related to non-routine import and export fees. Non-routine items in the three months and year ended December 31, 2023 included $0.6 million and $7.5 million in legal fees and charges for two separate settled legal matters, respectively and $2.8 million related to non-routine import and export fees.

 

A reconciliation of non-GAAP free cash flow to net cash provided by operating activities for the three months and year ended December 31, 2024 and 2023 is as follows:
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
		(in thousands)
Net cash provided by (used in)    operating activities		$	3,918			$	(3,876)			$	26,692			$	43,342
Purchases of property and equipment			(1,830)				(1,084)				(5,649)				(4,198)
Purchases of rental product			(257)				—				(3,038)				—
Free cash flow		$	1,831			$	(4,960)			$	18,005			$	39,144
Net cash used in investing activities		$	(2,087)			$	(1,084)			$	(9,114)			$	(4,198)
Net cash provided by (used in)  financing activities		$	5,623			$	(18,279)			$	(5,363)			$	(30,377)

 

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SOURCE Revolve Group, Inc.

FAQ

What was Revolve Group's (RVLV) revenue growth in Q4 2024?

RVLV's Q4 2024 net sales grew 14% year-over-year to $293.7 million.

How much did RVLV's international sales grow in Q4 2024?

International sales increased by 29% year-over-year to $57.1 million in Q4 2024.

What was Revolve's (RVLV) net income for Q4 2024?

Net income was $11.8 million, representing a 237% increase year-over-year.

How many active customers does RVLV have as of Q4 2024?

RVLV reported 2,668,000 active customers, a 5% increase year-over-year.

What is RVLV's cash position at the end of 2024?

RVLV held $256.6 million in cash and cash equivalents, up 5% from previous year.