Swedish DTC outdoor company RevolutionRace (RVRC) says it is seeing continued robust growth at the start of the third quarter of its fiscal year, after sales in the second quarter increased by 58 percent to 392 million Swedish kronor (€37.5m-$42.8m) amid continued strong demand for multifunctional garments. On a constant currency basis, second-quarter sales were up by 59 percent.

RevolutionRace’s second-quarter results brought rolling sales in the 12 months through the end of December to SEK 1,164 million (€111.5m-$127.1m), a 103 percent improvement on the year earlier. The average order value in the second quarter grew to SEK 776 (€74.3-$84.8) from SEK 753 the year earlier, due to a favorable product and market mix, particularly in jackets.

In the second quarter, adjusted Ebit rose by 73 percent to SEK 117.5 million (€11.3m-$12.8m). The adjusted Ebit margin widened to 28.9 percent from 27.0 percent, resulting in the company attributed to strong marketing and operational performance. The gross margin narrowed to 71.6 percent from 71.9 percent the year earlier, with the positive impact of market mix offset by a higher share of sales with price reductions and increased freight costs due to price hikes and the use of alternative shipment methods from Asia. Cash flow from operating activities decreased to SEK 34.4 million (€3.3m-$3.8m) from SEK 61.7 million the year earlier, mainly due to an increase in inventories, which was according to plan.

Sales in the DACH region rose by 98 percent to SEK 192 million (€18.4m-$21.0m) and represented 49 percent of all sales in the second quarter. Growth was led by Germany, the company’s largest market, which saw sales rise by 97 percent to SEK 164 million (€15.7m-$17.9m). According to RVRC, the October launch in Switzerland exceeded expectations and brought the number of markets served through local online stores to 17.

Sales in the Nordic region progressed by 13 percent to SEK 125 million (€12.0m-$13.7m), with sales in Sweden increasing by 6 percent to SEK 58.8 million (€5.6m-$6.4m) and sales in Finland growing by 9 percent to SEK 34.3 million (€3.3m-$3.8m). Sales in the rest of the world jumped by 84 percent to SEK 75 million (€7.2m-$8.2m), as the company said new markets are developing according to, or better than, plan.

RVRC highlighted the strong start to the third quarter, typically a seasonally weaker quarter than the second. The company is planning to launch backpacks in the third quarter after hiking shoes, a new product for the company, sold out within two days of its launch in December. In terms of volume and models, more shoes will be available for sale in the third quarter, the company said.