Revolve Group (NYSE:RVLV) delivered impressive fourth-quarter results, exceeding analyst expectations as revenue climbed 14% year-over-year. Despite the strong earnings, the company’s stock dropped more than 6% intra-day today.
The fashion e-commerce retailer reported adjusted earnings per share of $0.17, significantly outpacing the expected $0.10. Quarterly revenue surged to $293.73 million, beating forecasts of $282.67 million and marking a substantial increase from $257.78 million in the prior-year period.
Profitability soared, with net income more than tripling to $11.77 million from $3.49 million in Q4 2023. Adjusted EBITDA also more than doubled, reaching $18.27 million, compared to $8.54 million a year ago.
Looking ahead, Revolve expects gross margins to remain strong, projecting a range of 52.2% to 52.7% for Q1 2025 and 52.4% to 52.9% for the full year.
The company also reported steady growth in its customer base, which expanded 5% year-over-year to 2.67 million active users. Total orders placed increased by 7% to 2.17 million, reflecting continued momentum in consumer demand.