The US clothing retailer Revolve Group Inc. suffered another decline in sales in the third quarter of the 2023 financial year. The profit of the e-commerce specialist, which not only has young fast fashion brands but also renowned designer labels in its range, actually collapsed.
According to an interim statement published on Wednesday, group sales in the months July to September amounted to 257.6 million US dollars (242.6 million euros). Compared to the same quarter last year, revenue fell by four percent.
Profit fell even more due to a lower gross margin. Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special items fell by 46 percent to $9.5 million. The reported net profit even fell by 73 percent to just under 3.2 million US dollars (3.0 million euros).
Co-founder and co-CEO Mike Karanikolas highlighted that the retailer has made progress in aligning its inventory levels with sales trends. In addition, the company increased the number of active customers to over 2.5 million in the past quarter. Karanikolas viewed the fact that the average order value fell compared to the previous year as only a temporary effect of the “very difficult market environment”.