Revolve Group tapped Sofia Richie Grainge for the launch of its newest company-owned label named SRG.
The ready-to-wear line, which was announced Thursday, adds to an expanding roster of owned brands that have brought a higher-margin business for Revolve.
“This partnership marks a new era for Revolve – one that expands our offerings, while continuing to push boundaries and deliver the trends our community loves,” Revolve Group Chief Brand Officer Raissa Gerona said in a statement.
Revolve Group executives have repeatedly called out the potential in the company’s owned brands and their increasing percentage of revenue for the namesake business. Revolve Group consists of the Revolve and FWRD fashion retailers.
Co-CEO and co-founder Michael Mente told analysts during the company’s most recent earnings update in August that company-owned brands have notched five straight quarters of year-over-year growth that’s outpacing overall increases.
Mente called out in-house brands as a “key driver of traffic, new customer acquisition and net sales at full price.”
SRG Details
The debut SRG collection is comprised of suiting, outerwear, silk shirts and dresses. It retails from $250 to $1,850.
The brand launched on Revolve.com and Revolve’s luxury sister retailer, FWRD.com. SRG has its own dedicated online shop where the collection will also be sold once the site launches.
Richie Grainge described her label’s investment pieces as “intentional, timeless and personal” and called the partnership with Revolve Group a “natural” fit.
As of the company’s 2024 annual report, in-house brands totaled 29 and occupied five spots on the top 10 labels shopped by Revolve division customers.
Among the company’s owned brands are Lovers and Friends, GRLFRND, Camila Coelho, Elsa Hosk’s Helsa and Nicole Richie’s House of Harlow 1960.
Those owned brands drove a little over 18 percent of the Revolve division’s 2024 net sales.
Strong Returns
The launch of SRG comes as Revolve Group explores other expansion opportunities.
Outside of partnerships with big names on new labels, the company’s also expected to soon open the doors to its newest physical store at The Grove in Los Angeles.
That location follows the opening of the company’s first-ever permanent location in Aspen.
Last month, Revolve opened The Cotton Shop in Nashville. The pop-up shop was merchandised around cotton apparel and accessories.
Revolve Group generated net sales of $309 million in the June quarter, which was up 9 percent from a year ago. Net income dropped 35 percent to $10 million. That was mostly attributed to the company’s decision to exit its ownership of French couture label Alexandre Vauthier. Revolve bought the troubled business out of administration but ultimately decided to move on from the business in favor of what CFO Jesse Timmermans said in August would bear out in higher returns.
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