The net income of the company was $11.4 million. Adjusted EBITDA stood at $19.3 million, an increase of 45 per cent YoY that primarily reflects an increase in net sales and gross profit combined with increased efficiency in the company’s selling and distribution costs, marketing investment and fulfilment costs, partially offset by increased general and administrative expenses, Revolve said in a press release.
Revolve has reported Q1 2025 net sales of $296.7 million, up 10 per cent YoY, with gross profit rising 9 per cent to $154.3 million.
Adjusted EBITDA surged 45 per cent to $19.3 million.
For FY25, the company expects gross margin of 50–52 per cent amid macroeconomic challenges.
Co-CEOs highlighted strong execution, and continued investments, while pursuing long-term growth opportunities.
The diluted earnings per share (EPS) remained at $0.16, an increase from $0.15 in Q1 2024.
In Q1, Revolve segment reported net sales of $254.4 million, reflecting 11 per cent YoY increase, and FWRD segment recorded net sales of $42.3 million, up 3 per cent. Domestically, net sales reached $239.2 million, marking a 9 per cent rise YoY, while international net sales grew by 12 per cent to $57.5 million.
For the full year ending December 31, 2025, the company is expecting gross margin between 50 per cent and 52 per cent, down from the earlier range of 52.4 per cent to 52.9 per cent due to ongoing macroeconomic challenges including tariffs, inflation, supply chain disruptions, and currency volatility. Meanwhile, the fulfilment expenses are expected to remain steady at 3 to 3.2 per cent of net sales, while selling and distribution expenses are forecast to rise slightly to 17.2 to 17.5 per cent of net sales.
The marketing expenses are unchanged at 14.9 to 15.1 per cent of net sales. General and administrative expenses are now estimated at $154 million to $157 million, slightly below the previous range.
For the second quarter (Q2) of 2025, ending June 30, 2025, the company is anticipating a gross margin of 52 to 53 per cent, fulfilment expenses at 3.1 per cent of net sales, selling and distribution expenses at 17.9 per cent, marketing expenses at 15 per cent, and general and administrative expenses of $39 million.
“Our strong execution within a dynamic macro environment resulted in outstanding first quarter results, highlighted by double-digit top-line growth, 57 per cent growth in operating income year-over-year, and $45 million in operating cash flow that further strengthened our balance sheet,” said co-founder and co- chief executive officer (CEO) Mike Karanikolas. “We achieved these strong results while continuing to invest in key initiatives that we believe will drive long-term success, which is especially important during this uncertain time when industry peers with weaker foundations are dialling back investment plans.”
“I am very proud of our team’s continued outstanding execution and flexibility that has driven our strong performance. It is the strength of our team, our solid financial foundation and our flexibility that we believe position us well to navigate through the current geopolitical and macro-uncertainty while continuing to invest in the exciting growth opportunities ahead,” said co-founder and co-CEO Michael Mente. “We have consistently outperformed through challenging periods in the past and are entering this current cycle on strong footing, giving us the confidence not just to manage through the near-term challenges, but also to gain further market share and drive long-term gains.”
Fibre2Fashion News Desk (SG)