Shares of Revolve Group (RVLV 3.60%) soared on Friday, up by 14% at 11:30 a.m. EST, after the company reported first-quarter earnings. The results handily beat expectations, and Revolve expressed optimism about economic recovery.
Revenue in the first quarter increased 22% to $178.9 million, topping the consensus estimate of $156.3 million. That resulted in net income of $22 million, or $0.30 per share. Wall Street analysts were looking for just $0.12 per share in profit. The online fashion retailer said active customers were 1.48 million, orders placed were 1.3 million, and the average order value was $256.
"Our exceptional results for the first quarter reinforce our belief that REVOLVE is uniquely positioned for the reopening of economies and the post-COVID world as a brand consumers associate with living an active social lifestyle," co-CEO Mike Karanikolas said in a statement. "We are excited to reaccelerate our investment in the business to support our next phase of growth."
The COVID-19 pandemic continues to affect results, but Revolve sees light at the end of the tunnel. After the quarter closed on March 31, net sales in April continued to gain momentum and "meaningfully" outpaced the first quarter's overall growth rate of 22%, the company said. The company pointed to ongoing progress in vaccine distribution and other signs that the economy in the U.S. is recovering. Revolve has resumed in-person marketing events with safety protocols in place.