Revolve (RVLV) Declined Due to Management’s Comments

Core Insights - Optimist Fund reported its strongest investment performance since inception, achieving a return of 39.2% in Q2 2025 compared to a benchmark return of 11.3% [1] Company Overview - Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer targeting millennial and Generation Z consumers [2] - As of September 15, 2025, Revolve Group's stock closed at $23.82 per share, with a market capitalization of $1.698 billion [2] Financial Performance - In Q2 2025, Revolve Group generated net sales of $309 million, reflecting a year-over-year increase of 9% [4] - The one-month return for Revolve Group was 11.31%, but the stock lost 2.78% over the last 52 weeks [2] Investment Commentary - Revolve Group was the only position in Optimist Fund's portfolio that declined during the quarter, primarily due to management's comments about a slowdown in revenue growth from double digits to mid-single digits [3] - The company has since indicated a return to double-digit growth and noted limited cost headwinds following a reduction in China-related tariffs [3] - Despite the challenges, the fund has increased its position in Revolve Group, viewing current valuations as highly attractive [3] Hedge Fund Interest - Revolve Group is not among the 30 most popular stocks among hedge funds, with 21 hedge fund portfolios holding the stock at the end of Q2 2025, unchanged from the previous quarter [4]