Revolve Group announced on Wednesday revenues for the third quarter were $257.6 million, a decrease of 4%, on the back of decline in average spend per active customer, and dips across both brands.
The owner of fashion platforms Revolve and Fwrd said net sales at Revolve were $217.7 million, down 2%, partially offsetting a 14% plummet in Fwrd segment sales at $39.9 million.
By region, domestic net sales were $207.2 million, down 5%, while international sales were $50.4 million, a year-over-year decrease of 1%.
The company’s bottom line copped a beating during the three months ending September. Net income was $3.2 million, down 73%, on the back of a decline in net sales, reduction in gross profit year-over-year, continued pressure on certain operating expenses, and a $6.6 million accrual for a pending legal matter.
The Los Angeles-based retailer did, however, reveal trailing 12-month active customers increased by 52,000 during the third quarter, growing to 2,510,000 as of September 30, an increase of 12% year-over-year.
”A key highlight of the third quarter was surpassing 2.5 million active customers, an increase of 12% year-over-year, and over one million more active customers than the third quarter of 2019,” said co-founder and co-CEO Michael Mente.
“While average spend per active customer has decreased year-over-year in this very challenging environment, we view this as a temporary dynamic that will normalize as the environment improves. As we look ahead, our team is energized by the opportunity to drive improved results across a wide range of longer-term initiatives that leverage our core competencies of technology innovation, operating efficiency and brand building that have served us well for the past 20 years.”
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