William Blair analyst Dylan Carden has maintained their bullish stance on RVLV stock, giving a Buy rating today.
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Dylan Carden has given his Buy rating due to a combination of factors that highlight Revolve Group’s potential for growth and profitability. The company’s second-quarter performance exceeded expectations, with strong sales and earnings driven by effective customer acquisition strategies and improved gross margins. Notably, both the international and FWRD segments showed impressive growth, contributing to an overall positive top-line profile.
Despite a slowdown in July, Carden remains optimistic about Revolve’s future prospects, citing the company’s conservative internal outlook and margin expectations. The firm has raised its full-year gross margin guidance, supported by investments in merchandising and markdown algorithms, which are expected to lead to structurally higher margins in the long term. Additionally, Revolve’s shares are currently valued at a multiple that suggests potential upside, given its competitive platform, robust balance sheet, and opportunities for international and category expansion. However, Carden acknowledges the risk of volatility in top-line performance that could impact the company’s progress.
Carden covers the Consumer Cyclical sector, focusing on stocks such as Revolve Group, Boot Barn, and thredUP. According to TipRanks, Carden has an average return of 23.8% and a 65.59% success rate on recommended stocks.