Strong First Quarter Financial Performance
Revolve reported a 10% year-over-year increase in net sales, with domestic net sales up 9% and international net sales up 12%. Operating income grew by 57% year-over-year, and adjusted EBITDA increased by 45%.
Increased Operating Cash Flow
The company generated $45 million in operating cash flow during the first quarter, increasing their cash position by $44 million, with cash and cash equivalents exceeding $300 million.
Successful Marketing Initiatives
REVOLVE Festival in Coachella Valley led to a 40% increase in press impressions and a 25% increase in social media impressions year-over-year with reduced spending.
Improved Inventory Dynamics
Inventory decreased by 7% compared to year-end 2024, with the net sales growth outpacing inventory growth. The mix of owned brand net sales as a percentage of REVOLVE segment net sales increased year-over-year for the first time in 2.5 years.
Continued Investment in Technology and AI
Revolve is leveraging AI for customer service improvement and product discovery, including AI algorithms for call transcriptions and a new AI-powered styling feature.