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Revolve Group (RVLV)
NYSE:RVLV
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Revolve Group
(NYSE:RVLV)
68Neutral
Positive Factors
Financial Performance
RVLV reported better-than-expected sales, SG&A and gross margin driven by FWRD, Revolve mix shift, and improved return rates.
Retail Expansion
Revolve is now truly leaning into its retail opportunity after years of being more skeptical and dismissive.
Negative Factors
Valuation Concerns
Analyst remains sidelined on valuation, indicating concerns about RVLV's current market valuation.
Revolve Group (RVLV) vs. S&P 500 (SPY)
Market Cap
$1.76B
Dividend YieldN/A
Average Volume (3M)1.43M
Price to Earnings (P/E)35.7
Beta (1Y)2.20
Revenue Growth5.73%
EPS Growth81.83%
CountryUS
Employees1,632
SectorConsumer Cyclical
Sector Strength50
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)0.69
Shares Outstanding40,298,700
10 Day Avg. Volume1,703,864
30 Day Avg. Volume1,425,415
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)N/A
Price to Sales (P/S)1.57
Price to Cash Flow (P/CF)113.00
P/FCF Ratio113.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.64Price Target Upside31.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Revolve Group Business Overview & Revenue Model
Company DescriptionRevolve Group (RVLV) is a leading online fashion retailer that primarily caters to millennial and Gen Z consumers. The company operates in the fashion and apparel sector, offering a wide range of products including clothing, footwear, accessories, and beauty products. Revolve is known for its curated selection of trendy and contemporary styles from both established and emerging brands, providing a platform for fashion-forward consumers seeking the latest trends.
How the Company Makes MoneyRevolve Group makes money primarily through the sale of fashion and lifestyle products via its e-commerce platform. The company generates revenue by purchasing products from brands and designers at wholesale prices and selling them at retail prices to consumers. Key revenue streams include direct sales from its website and mobile app, where it offers a wide array of clothing, shoes, and accessories. Revolve also engages in strategic marketing and influencer partnerships to drive traffic and increase sales. Additionally, the company leverages data-driven insights to optimize inventory and pricing strategies, enhancing its profitability. Significant partnerships with fashion brands and collaborations with influencers contribute to expanding its market reach and customer base.
Revolve Group Financial Statement Overview
Summary
Revolve Group exhibits a strong financial position with stable revenue growth, solid gross margins, and low leverage. However, there are opportunities for improvement in net profit margins and cash flow generation. The company's strong equity base and consistent revenue growth provide a solid foundation for future expansion, although enhancing cash flow efficiency will be crucial for sustaining long-term growth.Income Statement
The company demonstrated solid revenue growth with a Revenue Growth Rate of 5.73% in 2024. Gross Profit Margin remained strong at 52.52%, although Net Profit Margin was relatively modest at 4.39%. The EBIT Margin improved to 4.55%, indicating better operational efficiency compared to previous years. Overall, profitability is stable but could benefit from further improvement in net margins.78
Positive
Balance Sheet
The balance sheet is healthy, with a low Debt-to-Equity Ratio of 0.09, reflecting minimal leverage. The Return on Equity is reasonable at 11.32%, suggesting effective use of equity capital. The Equity Ratio is robust at 65.76%, indicating a strong equity base relative to total assets. The financial position appears stable with low reliance on debt.82
Very Positive
Cash Flow
Operating Cash Flow to Net Income Ratio is 0.54, suggesting moderate efficiency in converting net income to cash. Free Cash Flow to Net Income Ratio stands at 0.42, indicating room for improvement in cash generation. Free Cash Flow growth was negative at -46.24%, reflecting potential challenges in cash flow generation, despite positive net income.74
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.13B | 1.07B | 1.10B | 891.39M | 580.65M |
| Gross Profit | ||||
| 593.27M | 554.20M | 592.32M | 489.82M | 305.28M |
| EBIT | ||||
| 51.42M | 22.13M | 73.14M | 105.29M | 61.07M |
| EBITDA | ||||
| 51.42M | 27.53M | 77.93M | 109.80M | 65.89M |
| Net Income Common Stockholders | ||||
| 49.56M | 28.15M | 58.70M | 99.84M | 56.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 256.60M | 245.45M | 234.72M | 218.46M | 146.01M |
| Total Assets | ||||
| 665.55M | 608.89M | 579.32M | 480.41M | 305.75M |
| Total Debt | ||||
| 40.73M | 40.99M | 24.50M | 6.94M | 0.00 |
| Net Debt | ||||
| -215.87M | -204.46M | -210.22M | -211.51M | -146.01M |
| Total Liabilities | ||||
| 227.76M | 223.75M | 199.75M | 163.40M | 105.69M |
| Stockholders Equity | ||||
| 438.19M | 385.14M | 379.57M | 317.01M | 200.06M |
| Cash Flow | Free Cash Flow | |||
| 21.04M | 39.14M | 18.27M | 60.12M | 71.45M |
| Operating Cash Flow | ||||
| 26.69M | 43.34M | 23.44M | 62.31M | 73.77M |
| Investing Cash Flow | ||||
| -9.11M | -4.20M | -5.17M | -2.19M | -2.32M |
| Financing Cash Flow | ||||
| -5.36M | -30.38M | 887.00K | 12.77M | 8.66M |
Revolve Group Technical Analysis
Negative
24.00
Price Trends
29.54
Negative
30.87
Negative
25.68
Negative
Market Momentum
-1.81
Positive
33.55
Neutral
40.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVLV, the sentiment is Negative. The current price of 24 is below the 20-day moving average (MA) of 27.24, below the 50-day MA of 29.54, and below the 200-day MA of 25.68, indicating a bearish trend. The MACD of -1.81 indicates Positive momentum. The RSI at 33.55 is Neutral, neither overbought nor oversold. The STOCH value of 40.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RVLV.
Revolve Group Risk Analysis
Revolve Group disclosed 65 risk factors in its most recent earnings report. Revolve Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Revolve Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.00B | 12.71 | 17.56% | ― | 7.71% | 40.01% | |
71 Outperform | $14.95B | 30.21 | 42.55% | ― | 9.33% | ― | |
68 Neutral | $1.76B | 35.68 | 12.04% | ― | 5.73% | 81.83% | |
68 Neutral | $13.57B | 35.91 | 131.11% | ― | 4.11% | 3328.10% | |
67 Neutral | $4.00B | 14.03 | 29.58% | 3.14% | 2.20% | 120.00% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
50 Neutral | $605.18M | ― | 32.94% | ― | 9.32% | 25.94% |
* Consumer Cyclical Sector Average
Performance Comparison
RVLV
Revolve Group
24.00
2.36
10.91%
JWN
Nordstrom
24.20
6.79
39.00%
URBN
Urban Outfitters
52.97
11.05
26.36%
BURL
Burlington Stores
243.25
22.16
10.02%
CHWY
Chewy
33.26
15.27
84.88%
REAL
RealReal
5.86
2.61
80.31%
Revolve Group Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -15.25% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Revolve's earnings call was largely positive, highlighting strong fourth-quarter and full-year performances, significant growth in net income and adjusted EBITDA, and improvements in marketing and logistics efficiencies. The company also emphasized international growth and advancements in AI technology. However, challenges remain in the luxury segment, and January sales were impacted by wildfires affecting California.Highlights
Strong Fourth Quarter Performance
Net sales were $294 million, an increase of 14% year-over-year. Net income for the fourth quarter was $12 million, more than triple the $3 million in the prior year quarter. Adjusted EBITDA was $18 million, an increase of 114% year-over-year.
Full Year 2024 Achievements
Net income and adjusted EBITDA increased 73% and 60% year-over-year respectively. Net sales growth improved measurably each quarter throughout 2024.
Improvements in Marketing and Logistics
The company achieved a nearly 130-basis point reduction in marketing spend as a percentage of net sales and a 130 basis point reduction in global logistics costs as a percentage of net sales.
International Growth
International net sales increased 14% year-over-year, with record net promoter scores in international markets.
AI and Technology Advancements
Significant advancements in AI technology and personalization capabilities, including AI-powered search algorithms and AI-driven product recommendations.
Lowlights
Challenges in Luxury Segment
FWRD segment experienced volatility, with lower average order value due to product mix.
January 2025 Sales Impacted by Wildfires
Los Angeles wildfires temporarily impacted demand in California, contributing to softer net sales growth in January.
Company Guidance
In the recent conference call, Revolve provided a comprehensive overview of their financial performance and guidance for 2025. The company reported a notable 14% year-over-year increase in Q4 net sales, reaching $294 million, with the REVOLVE and FWRD segments growing by 15% and 11%, respectively. International sales surged by 29%, highlighting strong global demand. Gross margin improved by 50 basis points, while net income reached $12 million, more than tripling from the previous year. Adjusted EBITDA also soared by 114%, demonstrating operational efficiency and cost management. The company plans to maintain marketing expenses at around 14.9%-15.1% of net sales for 2025, aiming for further efficiency gains across performance and brand marketing channels. Revolve also emphasized strategic priorities for 2025, including brand expansion, AI technology deployment, and physical retail exploration, with a strong focus on leveraging their proprietary technology stack to drive growth and efficiency. They aim for a gross margin between 52.4% and 52.9% in 2025, with continued investments in key growth areas while cautiously navigating factors like tariffs that could impact margins.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.