US retailer Revolve Group's sales rise 27% in Q2FY22

The company’s gross margin was 55.9 per cent, an increase of 29 basis points year-over-year, and our highest-ever gross margin for a second quarter. Growth in total operating expenses outpaced the company’s year-over-year growth in net sales, primarily due to deleverage in selling and distribution costs.  In particular, it experienced a higher return rate year-over-year with normalising product mix being a key contributor as dresses grew to 32 per cent of net sales in the second quarter of 2022 from 24 per cent in the second quarter of 2021, the company said in a press release.

"We delivered strong results in the second quarter, highlighted by record net sales that increased 27 per cent year-over-year, gross margin expansion to record levels for a second quarter, and continued strong growth in active customers," said co-founder and co-CEO Mike Karanikolas. "We delivered these results despite macroeconomic conditions that became more challenging as the quarter progressed, creating cost pressures that impacted profitability, and also contributed to a moderating year-over-year growth trend in net sales in June that has continued into the third quarter."

"Over our nearly 20 years of operating history, we believe we have demonstrated a unique track record for outperforming the competition in times of disruption and volatility,  and we have complete confidence in our team's ability to continue to execute through even the most challenging circumstances," added Mente. "I'm excited about our future and believe that our strong team, data centric culture, entrepreneurial spirit, operational excellence, and strong connection with the next-generation consumer position us to gain further market share in the months and years ahead."  

Fibre2Fashion News Desk (RR)