Cardi B’s Grow-Good Becomes Top-10 Revolve Brand

Cardi B‘s Grow-Good Beauty has become one of Revolve’s 10 biggest-selling brands, giving the retailer a new customer pipeline less than a year after launch.

Grow-Good’s third-quarter net sales nearly doubled from the previous quarter, Revolve co-founder and co-CEO Michael Mente said during the company’s November 3 earnings call. Revolve did not disclose the brand’s revenue or its share of total sales.

“Repeat purchases among existing customers have increased meaningfully over the past three months,” Mente said, according to Glossy. He also said the line was already contributing to Revolve’s bottom line.

That matters because Grow-Good is doing more than adding shampoo, conditioner, serum and a hair mask to Revolve’s inventory. Co-CEO Mike Karanikolas said its shoppers have a different profile from the company’s usual fashion customers, although Revolve is “still in the early stages” of understanding their behavior.

Revolve added 202,000 active customers during the quarter, its largest sequential increase. The total reached 3.24 million for the 12 months ending September 30, an 18 percent rise from a year earlier. Karanikolas said Grow-Good played a “meaningful role” in that growth but did not break out how many shoppers it brought in.

The lower-priced beauty products also changed the shape of Revolve’s business. Average order value fell 5 percent to $292. The company said the decline was primarily tied to initial Grow-Good sales at price points well below its fashion assortment. Without the line, the metric would have been roughly flat.

Revolve’s quarterly results showed net sales up 20 percent to $356 million and total orders up 19 percent. Gross profit rose 19 percent to $191.8 million, while adjusted EBITDA fell 7 percent to $23.5 million. The company also said its return rate dropped by more than two percentage points as beauty and international orders became a larger part of the mix.

Cardi and Revolve formally launched Grow-Good in April after a March presale. In October, the brand expanded into independent beauty supply shops in New York, Atlanta, Chicago, Houston and Los Angeles, then staged a day of custom hair treatments at a New York salon.

The third-quarter numbers provide the first clear look at what that rollout is doing for the parent company: attracting more shoppers, producing repeat business and adding profit, even as its lower prices pull down Revolve’s average ticket.