Fashion retailer Revolve Group will soon enable its customers in the U.S. to use Affirm to pay over time.The retailer will add this payment method in the U.S. in the coming days, both online and in its mobile app, and plans to then expand it to its customers in Canada and the U.K., the companies said in a Wednesday (April 2) press release.“Shopping should be effortless, and payment flexibility is a key part of our premium experience,” Revolve Group Co-founder and Co-CEO Mike Karanikolas said in the release. ...

Revolve Group reported better-than-expected fourth-quarter earnings with significant gains in revenue and earnings per share.Revolve Group (RVLV -4.74%), a leader in online fashion retail, recently announced its fourth-quarter 2024 results on February 25, 2025. The earnings highlighted notable revenue growth and improved profitability, with revenue reaching $293.73 million, surpassing analyst estimates of $283 million by 3.5%. This marks a 14% increase from $257.78 million in the same quarter last year. Its ...

Revolve Group, Inc. (NYSE:RVLV) Q4 2024 Earnings Conference Call February 25, 2025 4:30 PM ET Company Participants Erik Randerson – Vice President-Investor Relations Mike Karanikolas – Co-Founder and Co-Chief Executive Officer Michael Mente – Co-Founder and Co-Chief Executive Officer Jesse Timmermans – Chief Financial Officer Conference Call Participants Randy Konik – Jefferies Oliver Chen – TD Cowen Jim Duffy – Stifel Nathan Feather – Morgan Stanley Michael Binetti – Evercore ISI Mark Altschwager – Baird A ...

For the quarter ended December 2024, Revolve Group (RVLV) reported revenue of $293.73 million, up 14% over the same period last year. EPS came in at $0.17, compared to $0.05 in the year-ago quarter.The reported revenue represents a surprise of +4.26% over the Zacks Consensus Estimate of $281.74 million. With the consensus EPS estimate being $0.09, the EPS surprise was +88.89%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determin ...

Group 1 - Revolve Group reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and showing an increase from $0.05 per share a year ago, representing an earnings surprise of 88.89% [1] - The company achieved revenues of $293.73 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.26%, and up from $257.78 million year-over-year [2] - Over the last four quarters, Revolve Group has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2] Group 2 - The stock has underperformed, losing about 11.2% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $293.68 million, and for the current fiscal year, it is $0.75 on revenues of $1.21 billion [7] Group 3 - The Zacks Industry Rank indicates that the Textile - Apparel sector is currently in the top 15% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Revolve Group is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Q4 and FY 2024 Financial Highlights February 25, 2025 Unless otherwise indicated, all references in this presentation to "we," "our," "us," or similar terms refer to Revolve Group, Inc. and its subsidiaries. Use of Non-GAAP Financial Measures PAGE 2 In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow. These non- GAAP measures are in addition to, not a substitute for or superior to, measures ...

Sales Performance - In 2024, approximately 82% of net sales were at full price, significantly higher than industry benchmarks[32] - Sales of products at full retail price represented approximately 82% of total net sales in 2024, reflecting the effectiveness of the company's merchandising strategy[42] - In 2024, the company generated $1.1 billion in net sales and served 2.7 million active customers, with an average order value of $302[41] - Net sales of owned brands accounted for 18.2% of REVOLVE segment net sales in 2024, indicating a growing emphasis on proprietary offerings[46] Customer Engagement and Technology - Customer orders placed through mobile devices represented 73.7% of total orders in 2024[37] - The company has built a community of thousands of influencers enrolled in its proprietary brand ambassador program[33] - The company relies on a proprietary technology platform for inventory management, pricing, and trend forecasting[32] - The technology platform supports over 20 years of data, optimizing merchandising, marketing, and customer service operations[63] - The company allows customers to engage in 12 languages and pay in over 50 currencies using one of 20 payment methods, enhancing customer experience and accessibility[67] - The proprietary inventory tracking system provides real-time updates regarding the status of orders, contributing to customer satisfaction and loyalty[70] Product Offerings and Brand Strategy - The company launched an average of over 1,900 new styles per week in 2024[32] - Owned brands contributed 18.2% of the REVOLVE segment's net sales in 2024, with five out of the top ten brands being owned brands[34] - The company offered over 1,000 emerging and established brands through REVOLVE, including 29 owned brands, and over 500 brands through FWRD in 2024[102] - The owned brand portfolio is supported by a flexible network of manufacturing partners, allowing for rapid product introduction and market responsiveness[59] - The company is focusing on expanding its product offerings to include luxury, beauty, and home products, targeting Millennial and Generation Z consumers[146] Operational Efficiency and Fulfillment - The company has a highly scalable and flexible infrastructure that optimizes inventory and order allocation, reducing shipping and fulfillment expenses, and delivering merchandise quickly and efficiently to customers[70] - Over 96% of orders are shipped on the same day if placed before 3:00 p.m. Eastern Time, and the company offers free two-day shipping and free returns to customers in the United States[70] - The company operates three fulfillment centers located in California and Pennsylvania, which are expected to support near-term growth plans[146] - Future growth may be hindered by challenges in optimizing and managing fulfillment center capacity, potentially leading to increased costs and delays in order fulfillment[144] Growth and Expansion Plans - The company aims to expand its operations and physical store presence efficiently and cost-effectively[23] - The company intends to evaluate the expansion of physical retail stores to increase brand awareness and customer acquisition[53] - The company has opened its first permanent brick-and-mortar store and is in the process of opening a second, with plans for further expansion[113] Risks and Challenges - The company is exposed to risks associated with sourcing, manufacturing, and warehousing, particularly in China[19] - The company must adapt to rapidly evolving social media platforms to maintain effective marketing and customer engagement[106] - Rising rates from third-party vendors and logistics providers could materially impact financial results if costs are not passed on to customers[116] - The company relies on third-party vendors for sourcing, which exposes it to price fluctuations and demand disruptions, potentially impacting operating results negatively[118] - Quality control issues with third-party suppliers could lead to regulatory actions and harm the company's reputation, resulting in potential inventory write-downs[123] - Increased tariffs and trade disputes between the U.S. and China may restrict the flow of goods and increase costs, impacting profitability[127] Financial and Regulatory Compliance - The company faces risks related to payment processing, including compliance with regulations and potential fraud, which could impact financial performance[156] - The company is subject to various domestic and foreign laws and regulations that could impact its operations, including consumer protection laws and regulations related to privacy and data security[78] - Compliance with evolving trade and other regulations is complex and may lead to significant penalties or operational disruptions[167] - Changes in tax laws, such as the Inflation Reduction Act of 2022, could materially impact after-tax profitability and effective tax rates[180] Cybersecurity and Data Protection - Cybersecurity risks are heightened due to geopolitical tensions, which may lead to increased incidents of data breaches and security threats[208] - The company has faced phishing and social engineering attacks in the past, indicating vulnerabilities in its data security measures[206] - The reliance on third-party vendors for data processing increases the risk of unauthorized access and data breaches, complicating compliance efforts[207] - The company incurs significant costs to detect and prevent security breaches, with expectations of increased costs as improvements are made to systems and processes[210] Employee Growth and Management - As of December 31, 2024, the company had 1,632 employees, up from just over 1,000 employees at the end of 2019, reflecting a growth of over 63% in headcount[73] - The company faces challenges in managing growth, including hiring and integrating new employees while maintaining operational efficiency[100]

Financial Performance - Fourth quarter 2024 net sales reached $293.7 million, a 14% increase year-over-year from $257.8 million in Q4 2023[3] - Gross profit for Q4 2024 was $154.3 million, reflecting a 15% year-over-year increase[9] - Net income for Q4 2024 was $11.8 million, a significant increase of 237% compared to $3.5 million in Q4 2023[9] - Adjusted EBITDA for Q4 2024 was $18.3 million, up 114% from $8.5 million in the same quarter last year[9] - For the full year 2024, net sales totaled $1.13 billion, a 6% increase from $1.07 billion in 2023[12] - Gross profit for the year ended December 31, 2024, was $593,273,000, representing a 7.0% increase from $554,199,000 in 2023[41] - Net income attributable to stockholders for the year was $49.6 million, a significant increase from $28.1 million in 2023, representing a growth of 76.3%[35] - Free cash flow for the year ended December 31, 2024, was $26.7 million, down from $43.3 million in 2023, reflecting changes in working capital[39] Customer Metrics - Active customers increased to 2.668 million in Q4 2024, a 5% growth year-over-year[4] - Active customers reached 2,668, an increase from 2,543 in the previous year, indicating a growth of 4.9%[43] - Total orders placed in Q4 2024 were 2.172 million, representing a 7% increase from 2.022 million in Q4 2023[4] - Total orders placed increased to 2,172 for the three months ended December 31, 2024, up from 2,022 in 2023, marking a growth of 7.4%[43] Sales Breakdown - Domestic net sales for Q4 2024 were $236.6 million, an 11% increase year-over-year, while international net sales were $57.1 million, a 29% increase[9] - The United States accounted for $236,644,000 in net sales for the three months ended December 31, 2024, up from $213,658,000 in 2023, representing an increase of 10.7%[41] Operational Efficiency - Operating expenses for the year were $541.9 million, slightly up from $532.1 million in 2023, indicating controlled expense management[35] - The company expects gross margin for FY 2025 to be between 52.4% and 52.9%[11] - Gross margin improved to 52.5% for the three months ended December 31, 2024, compared to 52.0% in 2023[43] Strategic Initiatives - The company plans to continue expanding its product offerings and enhancing customer experience through strategic investments in technology and marketing[31] - The company repurchased $11.8 million worth of stock in 2024, with $57.6 million remaining under its stock repurchase program[18]

Core Insights - Revolve Group, Inc. reported strong financial results for Q4 and full year 2024, with double-digit growth in net sales and significant increases in net income and Adjusted EBITDA [2][12][13] Financial Performance - Q4 2024 net sales reached $293.7 million, a 14% increase from $257.8 million in Q4 2023 [3][5] - Gross profit for Q4 2024 was $154.3 million, up 15% year-over-year, with a gross margin of 52.5% [3][5] - Net income for Q4 2024 was $11.8 million, a 237% increase compared to $3.5 million in Q4 2023 [3][13] - Adjusted EBITDA for Q4 2024 was $18.3 million, reflecting a 114% year-over-year increase [3][13] - For the full year 2024, net sales totaled $1.13 billion, a 6% increase from $1.07 billion in 2023 [12][18] - Full year gross profit was $593.3 million, a 7% increase, with a gross margin of 52.5% [12][18] Operational Metrics - Active customers increased by 5% year-over-year to 2.67 million as of December 31, 2024 [4][14] - Total orders placed in Q4 2024 were 2.17 million, a 7% increase from 2.02 million in Q4 2023 [4][40] - Average order value in Q4 2024 was $301, slightly down from $303 in Q4 2023 [4][40] Segment Performance - The REVOLVE segment net sales were $252.0 million in Q4 2024, a 15% increase year-over-year, while the FWRD segment net sales were $41.8 million, an 11% increase [13][39] - Domestic net sales for Q4 2024 were $236.6 million, up 11% year-over-year, and international net sales were $57.1 million, a 29% increase [13][39] Cash Flow and Balance Sheet - Net cash provided by operating activities for the full year 2024 was $26.7 million, a decrease of 38% from $43.3 million in 2023 [12][18] - Free cash flow for the full year 2024 was $18.0 million, down 54% from $39.1 million in 2023 [12][18] - As of December 31, 2024, cash and cash equivalents were $256.6 million, a 5% increase from $245.4 million in 2023 [18][36] Business Outlook - The company provided guidance for FY 2025, expecting gross margin between 52.4% to 52.9% and general and administrative expenses between $155 million to $158 million [10][11]

Core Insights - Revolve Group is establishing a permanent store at The Grove in Los Angeles, transitioning from a temporary holiday shop that was successful in attracting foot traffic and celebrity appearances [1][2][4] Company Overview - Revolve Group, Inc. is a next-generation fashion retailer targeting Millennial and Generation Z consumers, offering a curated selection of apparel, footwear, accessories, and beauty products [8][9] - The company operates through two segments: REVOLVE, which features premium brands, and FWRD, which focuses on luxury brands [9] Store Details - The new store will span 8,450 square feet and will include a selection of popular REVOLVE brands, curated items from FWRD, and exclusive vintage handbags [3] - The store will temporarily close for renovations before reopening in Fall 2025 [5] Strategic Importance - The Grove is a high-traffic shopping destination, which aligns with Revolve's strategy to enhance customer acquisition and brand awareness [4] - The experiential retail approach aims to create memorable in-person shopping experiences, blending fashion and discovery [6]