The earnings call for Revolve's Q3 2024 highlighted strong revenue growth, significant profitability increases, and successful marketing efficiencies, especially driven by AI innovations. However, challenges such as a decline in gross margin due to deeper markdowns and elevated inventory levels pose concerns. Overall, the positive achievements outweigh the challenges.

Company Guidance

During Revolve's Q3 2024 earnings call, the company provided optimistic guidance, highlighting significant financial and operational metrics. The quarter was marked by a 10% year-over-year increase in net sales, reaching $283 million, and a 250 basis point improvement in adjusted EBITDA margin, which grew 85% to $18 million. Net income rose to $11 million, or $0.15 per diluted share, up from $3 million in the prior year. The company emphasized reductions in logistics costs and return rates, which contributed to profitability despite a slight decline in gross margin. Marketing efficiency improved, with investments representing 14% of net sales, the most efficient third quarter in four years. The call also noted strong international sales growth of 20% and successful enhancements to customer experience through AI and merchandising innovations. Looking ahead, Revolve expects Q4 gross margins between 51.2% and 51.5% and plans to continue investing in brand and marketing to sustain their growth trajectory.

Double-Digit Revenue Growth

Revolve reported a 10% increase in net sales year-over-year for Q3 2024, with strong performances in both REVOLVE (12% increase) and FWRD segments.

Significant Increase in Profitability

Net income for the third quarter rose to $11 million from $3 million in the previous year, with an 85% increase in adjusted EBITDA year-over-year.

Improved Marketing Efficiency

The company achieved its most efficient third quarter for marketing investments in four years, with marketing costs reduced by 141 basis points year-over-year.

International Sales Growth

International net sales increased by 20% year-over-year, with growth across all major regions.

AI Innovations

Revolve's AI search algorithm and AI-driven marketing strategies contributed to significant revenue boosts and operational efficiencies.

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Revolve Group (RVLV) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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RVLV Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 08, 2019	2019 (Q2)	- / 0.18	0.098	83.67% (+0.08)	―	―
Nov 07, 2019	2019 (Q3)	- / 0.13	0.067	94.03% (+0.06)	―	―
Feb 25, 2020	2019 (Q4)	- / 0.12	0.072	66.67% (+0.05)	―	―
May 13, 2020	2020 (Q1)	- / 0.06	0.045	33.33% (+0.01)	―	―
Aug 12, 2020	2020 (Q2)	- / 0.20	0.18	11.11% (+0.02)	―	―
Nov 11, 2020	2020 (Q3)	- / 0.27	0.13	107.69% (+0.14)	―	―
Feb 24, 2021	2020 (Q4)	- / 0.26	0.12	116.67% (+0.14)	―	―
May 06, 2021	2021 (Q1)	0.13 / 0.30	0.06	400.00% (+0.24)	―	―
Aug 04, 2021	2021 (Q2)	0.21 / 0.42	0.2	110.00% (+0.22)	―	―
Nov 03, 2021	2021 (Q3)	0.15 / 0.22	0.27	-18.52% (-0.05)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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RVLV Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 05, 2024	$26.02	$33.28	+27.90%
Aug 06, 2024	$17.57	$23.31	+32.67%
May 07, 2024	$21.15	$21.68	+2.51%
Feb 27, 2024	$17.49	$21.35	+22.07%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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