Tue, May 6, 8:34 PM (12 days ago)
**Revolve Group, Inc. (RVLV) Q1 2025 Financial Performance Summary** **Financial Health & Performance:** - **Revenue:** $296.7 million, up 9.7% YoY. - **Net Income:** $11.4 million, up 5.1% YoY. - **Gross Margin:** 52.0%, down slightly from 52.3% in Q1 2024. - **Operating Expenses:** $139.6 million, up 5.6% YoY. - **Cash Flow:** $45.1 million, up 17.6% YoY. **Key Metrics:** - **Active Customers:** 2.7 million, up 5.9% YoY. - **Total Orders:** 2.3 million, up 3.8% YoY. - **Average Order Value:** $295, down 1.3% YoY. **Segment Performance:** - **REVOLVE Segment:** $254.4 million, up 10.8% YoY. - **FWRD Segment:** $42.4 million, up 3.3% YoY. **Geographic Performance:** - **U.S. Sales:** $239.2 million, up 9.2% YoY. - **International Sales:** $57.5 million, up 11.7% YoY. **Trends & Uncertainties:** - **Tariffs & Trade:** Increased tariffs on Chinese goods impact cost of sales and product pricing. - **Customer Acquisition & Retention:** Focus on engaging existing customers and acquiring new ones through marketing efforts. - **Inventory Management:** Effective inventory management crucial for maintaining gross margins and avoiding markdowns. - **Seasonality:** Operating results relatively consistent across all quarters, not materially impacted by seasonal trends. **Future Operations Impact:** - **Investments:** Continued investment in technology, data analytics, and marketing strategies to drive growth. - **International Expansion:** Focus on elevating international service levels and customer experience. - **Risk Factors:** Economic downturns, tariffs, competition, and regulatory changes pose risks to financial performance. **Conclusion:** Revolve Group, Inc. demonstrated solid financial performance in Q1 2025, with notable growth in revenue and active customers. However, the company faces challenges from increased tariffs and competitive pressures. Continued investment in technology and marketing, along with effective inventory management, will be crucial for sustaining growth and maintaining profitability.