Financial Performance - Gross margin for the three months ended September 30, 2024, was 51.2%, compared to 51.7% for the same period in 2023[89] - Adjusted EBITDA for the three months ended September 30, 2024, was $17,503 thousand, up from $9,484 thousand in the same period in 2023[89] - Free cash flow for the three months ended September 30, 2024, was $6,171 thousand, compared to $11,492 thousand for the same period in 2023[89] - Net cash provided by operating activities for the three months ended September 30, 2024, was $9,052 thousand, down from $12,486 thousand in the same period in 2023[98] - Total net sales for the three months ended September 30, 2024, were $283.1 million, an increase of $25.5 million from $257.6 million in the same period of 2023[132] - Net sales for the nine months ended September 30, 2024, increased by 3.1% to $836.2 million compared to $810.9 million in the same period in 2023[140] - Income before income taxes was $49.8 million for the nine months ended September 30, 2024, compared to $32.9 million for the same period in 2023, representing a significant increase[148] Customer Engagement - Active customers increased to 2,628 thousand for the three months ended September 30, 2024, from 2,510 thousand in the same period in 2023[89] - Total orders placed for the three months ended September 30, 2024, were 2,200 thousand, compared to 2,133 thousand in the same period in 2023[89] - Average order value for the three months ended September 30, 2024, was $303, up from $299 in the same period in 2023[89] - Active customers increased during the period ended September 30, 2024, compared to the same period in 2023, driven by enhanced engagement and new customer acquisition[99] - Total orders placed increased in the three months ended September 30, 2024, compared to the same period in 2023, reflecting improved customer engagement[101] Sales and Revenue Breakdown - REVOLVE segment net sales for the three months ended September 30, 2024, were $243.4 million, an increase of 11.8% compared to $217.7 million in the same period of 2023[115] - FWRD segment net sales for the three months ended September 30, 2024, were $39.7 million, a decrease of 0.5% compared to $39.9 million in the same period of 2023[116] - Net sales to customers in the United States for the three months ended September 30, 2024, were $222.7 million, representing a 7.5% increase from $207.2 million in the same period of 2023[117] - Net sales to customers outside of the United States for the three months ended September 30, 2024, were $60.5 million, an increase of 20.0% compared to $50.4 million in the same period of 2023[118] Cost and Expenses - Cost of sales as a percentage of net sales for the three months ended September 30, 2024, was 48.8%, slightly up from 48.3% in the same period of 2023[131] - Cost of sales increased by 11.2% to $138.3 million for the three months ended September 30, 2024, representing 48.8% of net sales, up from 48.3% in the same period in 2023[134] - Fulfillment expenses were relatively flat at $9.3 million for the three months ended September 30, 2024, accounting for 3.3% of net sales, down from 3.6% in the same period in 2023[135] - Selling and distribution expenses decreased by 2.0% to $47.9 million for the three months ended September 30, 2024, representing 16.9% of net sales, down from 19.0% in the same period in 2023[136] - General and administrative expenses decreased by 3.7% to $33.9 million for the three months ended September 30, 2024, accounting for 12.0% of net sales, down from 13.7% in the same period in 2023[138] Strategic Initiatives - The company has invested in technology and data analytics to enhance customer experience and optimize inventory management[82] - The company plans to continue expanding its international presence while maintaining focus on the core U.S. market[87] - The logistics infrastructure supports free shipping and returns in the U.S., optimizing inventory allocation and reducing fulfillment expenses[86] - The company emphasizes a product mix that includes emerging and owned brands to minimize overlap with competitors and enhance marketing efficiency[81] - The company plans to open additional physical stores and conduct in-person events to enhance customer engagement and brand awareness[107] - The company utilizes a data-driven approach for inventory management, which allows for better alignment with customer demand and trends[112] Economic Factors - Economic factors such as inflation, employment rates, and consumer confidence significantly impact the company's performance and customer spending[104] - The company continues to monitor inflation impacts and is implementing strategies to mitigate its effects, which may affect product demand[164] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2024, were $252.8 million, an increase from $245.4 million as of December 31, 2023[149] - Working capital increased to $369.0 million as of September 30, 2024, compared to $339.0 million at the end of 2023[149] - Net cash provided by operating activities was $22.8 million for the nine months ended September 30, 2024, down from $47.2 million for the same period in 2023[159] - Net cash used in investing activities was $7.0 million for the nine months ended September 30, 2024, compared to $3.1 million in 2023[161] - Net cash used in financing activities was $11.0 million for the nine months ended September 30, 2024, compared to $12.1 million in 2023, primarily due to share repurchases[162] - The company has a line of credit providing up to $75.0 million in revolver borrowings, with no borrowings outstanding as of September 30, 2024[152] - A stock repurchase program of up to $100 million was authorized in August 2023, with repurchases based on market conditions[155]

LOS ANGELES, Nov. 5, 2024 /PRNewswire/ -- Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Financial Summary Three Months Ended September 30, 2024 2023 YoY Change (in thousands, except percentages) Net sales $ 283,146 $ 257,603 10 % Gross profit $ 144,867 $ 133,232 9 % <td colspan="1" row ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Revolve Group (RVLV) . This company, which is in the Zacks Textile - Apparel industry, shows potential for another earnings beat.When looking at the last two reports, this online women's fashion retailer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 81.25%, on average, in th ...

LOS ANGELES, Oct. 18, 2024 /PRNewswire/ -- Revolve Group, Inc. (NYSE: RVLV) announced today that it will release financial results for the third quarter ended September 30, 2024, after the market close on Tuesday, November 5, 2024, followed by a conference call at 1:30 PM (PT) / 4:30 PM (ET) on the same day. Shortly following the release of its financial results, the company will make available a Q3 2024 financial highlights presentation at http://investors.revolve.com. Approximately one hour after the comp ...

LOS ANGELES, Aug. 29, 2024 /PRNewswire/ -- Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, will present at the Piper Sandler Growth Frontiers Conference on Tuesday, September 10, 2024 at 11:30 a.m. ET / 8:30 a.m. PT. A live webcast of the presentation will be available within the "Events and Presentations" section of Revolve Group Inc.'s investor relations website at http://investors.revolve.com. The webcast will also be available for replay ...

Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $282 million, a 3% increase year-over-year, driven by improved trends in both segments [7][27] - Net income was $15 million or $0.21 per diluted share, representing a 111% increase year-over-year [8][31] - Adjusted EBITDA was $20 million, up 97% year-over-year, with a nearly 350 basis point expansion in adjusted EBITDA margin [8][31] - Consolidated gross margin increased to 54%, up 7 basis points year-over-year [28] Business Line Data and Key Metrics Changes - REVOLVE segment net sales increased by 4% year-over-year, marking the best performance in six quarters [7] - FWRD segment net sales decreased by 4% year-over-year, although this was an improvement of 10 points from the previous quarter [7] - Active customers grew to 2.6 million, a 5% increase year-over-year [27] Market Data and Key Metrics Changes - Domestic net sales increased by 1% year-over-year, while international net sales rose by 13% year-over-year [27] - Notable growth in international markets, particularly in China, where Revolve became the second largest seller of fashion merchandise on Tmall Global during the 618 shopping festival [11] Company Strategy and Development Direction - The company is focused on expanding brand awareness and customer base while leveraging AI technology to enhance customer experience [12][13] - The acquisition of an 80% stake in luxury brand Alexandre Vauthier is seen as a strategic move to capture market share in the luxury segment [18][19] - Plans to relaunch the Alexandre Vauthier brand with a new collection and fashion show during Paris Couture Week in January 2025 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to positive year-over-year growth and the effectiveness of initiatives to reduce return rates [10][39] - The company is cautious about incorporating recent improvements in return rates into future guidance until more consistent data is available [42] - Management noted that macroeconomic pressures have not significantly impacted their performance, indicating strong execution and market strength [59] Other Important Information - The company reported a decrease in fulfillment and selling and distribution costs as a percentage of net sales, reflecting improved operational efficiencies [29] - The balance sheet remains strong with cash and cash equivalents of $245 million and no debt [33] Q&A Session Summary Question: Can you provide additional color on second quarter results by month and trends into July? - Management indicated consistent performance throughout Q2 with a slight improvement as the quarter progressed, continuing into July [41] Question: Regarding the return rate, is the lack of incorporation into guidance due to conservatism or seasonality? - Management clarified that while there was great progress, they prefer to wait for more traction before adjusting guidance, noting seasonality impacts on return rates [42][43] Question: Can you elaborate on marketing costs and expected efficiencies? - Management highlighted significant efficiencies in marketing, particularly in brand marketing, and indicated that these efficiencies are expected to continue into the second half of the year [45][46] Question: What is the status of beauty and men's attachment rates? - Management reported strong growth in both beauty and men's categories, with beauty growing by 25% [50] Question: Can you discuss the timing of the retail strategy? - Management is proceeding cautiously with retail expansion, engaging consultants to guide their strategy, with updates expected in future calls [50][25] Question: How does the company view AI's role in improving business? - Management expressed pride in the development of an internal AI search algorithm that outperforms third-party solutions, indicating potential for broader applications in enhancing customer experience [72]

Revolve Group (RVLV) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 75%. A quarter ago, it was expected that this online women's fashion retailer would post earnings of $0.08 per share when it actually produced earnings of $0.15, delivering a surprise of 87.50%. Over the last four q ...

Financial Performance - Gross margin for 2024 is projected at 54.0%, compared to 53.2% in 2023 and 51.9% in 2022[79] - Adjusted EBITDA for the three months ended June 30, 2024, is $20,474 thousand, up from $10,377 thousand in the same period of 2023[83] - Net income for the three months ended June 30, 2024, was $15,377 thousand, compared to $7,303 thousand in the same period of 2023[83] - Net sales for the three months ended June 30, 2024, increased by $8.7 million, or 3.2%, to $282.5 million compared to $273.7 million in the same period in 2023[118] - Net sales for the six months ended June 30, 2024, were $553.0 million, a slight decrease of $301,000 (0.1%) compared to $553.3 million in the same period in 2023, attributed to a 1.1% decrease in orders shipped[125] Customer Metrics - Active customers increased to 2,577 in 2024, compared to 2,458 in 2023[79] - Active customers increased during the period ended June 30, 2024, compared to the same period in 2023, driven by enhanced engagement and customer acquisition efforts[89] - Total orders placed reached 2,271 in the three months ended June 30, 2024, slightly up from 2,268 in the same period of 2023[79] - Total orders placed were flat in the three months ended June 30, 2024, compared to the same period in 2023, but decreased slightly in the six months ended June 30, 2024, primarily due to reduced promotional activity[91] Sales Segments - The REVOLVE segment generated $245.5 million in net sales for the three months ended June 30, 2024, a 4.4% increase from $235.1 million in the same period in 2023[101] - The FWRD segment generated $36.9 million in net sales for the three months ended June 30, 2024, a decrease of 4.3% from $38.6 million in the same period in 2023[102] - Net sales in the REVOLVE segment increased by 1.8% to $475.1 million for the six months ended June 30, 2024, while net sales in the FWRD segment decreased by 10.0% to $77.9 million[126] Expenses - Cost of sales for the three months ended June 30, 2024, was $129.9 million, representing 46.0% of net sales, unchanged from the same period in 2023[119] - Fulfillment expenses decreased by $129, or 1.4%, to $9.3 million for the three months ended June 30, 2024, representing 3.3% of net sales[120] - Selling and distribution expenses decreased by $451, or 0.9%, to $50.4 million for the three months ended June 30, 2024, accounting for 17.9% of net sales[121] - Marketing expenses decreased by $8.5 million, or 16.6%, to $43.0 million for the three months ended June 30, 2024, representing 15.2% of net sales[122] - General and administrative expenses increased by $4.9 million, or 17.2%, to $33.5 million for the three months ended June 30, 2024, accounting for 11.9% of net sales[116] Cash Flow and Investments - Free cash flow for the six months ended June 30, 2024, was $(26,653) thousand, compared to $(15,069) thousand in the same period of 2023[79] - For the six months ended June 30, 2024, the company generated $13.7 million in operating cash flow, a decrease of 60.5% compared to $34.7 million for the same period in 2023[140] - Net cash used in investing activities was $4.1 million for the six months ended June 30, 2024, compared to $2.1 million for the same period in 2023, indicating a 95.2% increase[141] - Net cash used in financing activities was $10.0 million for the six months ended June 30, 2024, primarily due to share repurchases, compared to a net cash provided of $0.4 million in the same period of 2023[142] Market and Economic Conditions - The overall economic environment, including inflation and employment rates, significantly impacts customer spending and, consequently, the company's financial performance[94] - The company has been impacted by high levels of inflation, which has affected supply chain costs, shipping, and labor, necessitating monitoring and potential pricing strategies[144] International Expansion - The company has successfully expanded internationally with limited investment, offering express shipping and hassle-free returns for international orders over $100[77] - The company plans to continue investing in international markets while maintaining focus on the core U.S. market[77] Accounting and Financial Policies - The company continues to evaluate its critical accounting policies and estimates, with no material changes reported since the last annual report[145] - The company has not engaged in foreign currency hedging transactions, and foreign currency transaction gains and losses have not been material to its consolidated financial statements[149] - The company’s cash and cash equivalents are primarily held in money market funds and cash deposits, with no significant impact expected from interest rate changes[148]

Core Insights - Revolve Group is planning to expand its brick-and-mortar presence in luxury locations after a successful opening in Aspen, Colorado [1][2] - The company has experienced a significant decline in market capitalization, dropping approximately 80% from $6.4 billion to $1.3 billion since late 2021, despite having strong cash reserves and rising earnings projections [3] - Analysts have mixed views on Revolve's strategy, with a combination of buy, hold, and sell recommendations, but the company's cash position allows for strategic changes [4] Company Strategy - The opening of the Aspen store followed a successful pop-up store, indicating a positive reception from consumers for physical retail [2] - Revolve's target demographic primarily consists of women aged 18 to 35, and the company has historically relied on social media influencers for marketing [3][4] - The company aims to blend online shopping convenience with personalized service in physical stores, enhancing customer engagement [6] Industry Trends - The retail landscape is evolving with the rise of Click-and-Mortar™ shopping, where consumers utilize both digital and physical shopping experiences [5]

Shortly following the release of its financial results, the company will make available a Q2 2024 financial highlights presentation at http://investors.revolve.com. Conference Call Replay Toll free number: (800) 770-2030 (for domestic callers) Direct dial number: (609) 800-9909 (for international callers) Conference ID: 2756104 Availability: Approximately one hour after the completion of the conference call until August 13, 2024 About Revolve Group, Inc. Revolve Group, Inc. (NYSE: RVLV) is the next-generati ...