Revolve Shares Down 15%, 2Q Sales Rise But Income Falls

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By Stephen Nakrosis

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Shares of fashion retailer Revolve Group Inc. were lower in Wednesday’s late-trading session, after the company released second-quarter financial results which showed rising sales but declining income.

At 6:08 pm ET, the company’s shares were trading 15.97% lower, at $26 a share. Volume at the time topped 607,000 shares. The stock finished the day’s regular session with a 6.51% gain, closing at $30.94 a share.

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After the bell, Revolve reported second-quarter earnings per share of 22 cents on sales of $290 million. In the year-ago period, the company reported EPS of 42 cents on sales of $228.6 million.

Mike Karanikolas, the company’s co-founder and co-chief executive, said, “we delivered strong results in the second quarter, highlighted by record net sales that increased 27% year-over-year.” He also said, “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.”

Revolve said the second quarter saw a higher return rate year-over-year. “Selling and distribution costs also reflect significantly increased fuel surcharges on customer shipments due to higher fuel prices,” the company said.

Revolve also said “within our general and administrative expenses we have established an accrual for a pending legal matter.”

Write to Stephen Nakrosis at [email protected]

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Credit: www.marketwatch.com /

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