Shares of Revolve Group (RVLV 0.35%) were heading lower after the online apparel seller posted disappointing top-line results in its third-quarter earnings report. Like other clothing businesses, the influencer-driven e-commerce company has struggled during the pandemic. As of 1:55 p.m. EST, the stock was down 9% on the news.
Is revolve Group stock down 21% week to date?
That hasn't been the case with fashion retailer Revolve Group ( RVLV -9.29%), whose shares are down by nearly 21% week to date according to S&P Global Market Intelligence, despite the seemingly encouraging first quarter it reported on Tuesday.
How many analysts downgraded Revolve Technologies stock?
It's notable that among those price target cuts -- 10, by my count -- no analyst downgraded his or her recommendation on Revolve's shares. Of the 10, seven are keeping their buy tags on the stock, with the remainder maintaining neutral recommendations.
Why do stock prices rise after a earnings beat?
Typically, when a company delivers an estimates-beating quarter, its stock price rises as eager investors pile in to capitalize on the success.
How did revolve's fundamentals improve in Q3?
In the quarter, Revolve's fundamentals showed a vast improvement in key line items like net sales (up nearly 60% year over year to more than $283 million) and free cash flow, which rose by 62% to almost $53 million. And while net income was essentially flat on a comparative basis, it remained well in the black at nearly $22. 6 million.
Is revolve a good stock buy?
Revolve Group has received a consensus rating of Buy. The company's average rating score is 2.88, and is based on 15 buy ratings, 2 hold ratings, and no sell ratings.
Is revolve profitable?
In 2018 the margin averaged 8.38%, in 2019 it averaged 8.00% and in 2020 it averaged 10.52%. So, the trend is upward, even if the history isn't there. Consistency of profitability: For 2018, it had earnings per share (diluted) of $0.43, then a loss of $0.09 in 2019 and a profit of $0.79 per share in 2020.
Is revolve publicly traded?
Revolve Group Inc. shares plunged nearly 21% in Wednesday trading, heading for the stock's biggest single-day decline, as fears mount about the company's decelerating growth.
Is Michael Mente a billionaire?
Its shares have soared over 600% during the pandemic, rising from a low of $7.66 in March of 2020 to their current price of nearly $60. Mente is 41. His net worth is north of $1 billion, according to Forbes.
Why is REVOLVE so successful?
Also, Revolve's leading presence in social media and influencer marketing gives it a distinct advantage over its competitors. As sales through mobile devices continue to rise along with explosive growth of social commerce, Revolve is positioned to become a dominant player in the space.
Who are Revolve's competitors?
revolve.com's top 5 competitors in April 2022 are: shopbop.com, freepeople.com, lulus.com, net-a-porter.com, and more.
Who is Revolve's target audience?
Revolve has targeted Millennial and Gen Z women with trendy clothes that it markets primarily through a network of 3,500 influencers, who have large followings on social media platforms like Instagram.
When did Revolve clothing go public?
June 2019Revolve's initial public offering opened at $18 per share in June 2019 and closed at $34 on its first day of trading.
What happened
Revolve Group ( NYSE:RVLV) reported second-quarter earnings results that significantly exceeded analysts' expectations. What seemed to spook investors was that the company's sales growth showed a sharp deceleration from the end of Q2 into July.
So what
Taking the quarter at face value, the company is clearly performing very well. Net sales increased by 60% year over year to $228 million, while net profit more than doubled over the year-ago quarter. This was a meaningful acceleration over the first quarter's 22% increase in sales.
Now what
"Overall, we are encouraged by the pace of reopening and economic recovery across the United States and in many of our key international markets," the company stated in a press release.
Shares of the online apparel retailer dipped on a revenue decline in its latest quarter
Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. Follow @tmfbowman
What happened
Shares of Revolve Group ( NYSE:RVLV) were heading lower after the online apparel seller posted disappointing top-line results in its third-quarter earnings report. Like other clothing businesses, the influencer-driven e-commerce company has struggled during the pandemic.
So what
A core part of Revolve's business is selling clothes for social events, many of which have been canceled because of the coronavirus pandemic. As a result, revenue declined 2% to $151 million, which missed analyst estimates at $158.2 million.
Now what
Management did not offer guidance, but said that sales had declined by high-single digits in October as the company continues to experience headwinds from COVID-19, an uncertain macro environment, and an elevated unemployment rate.
What happened
Shares of Revolve Group ( RVLV -4.55% ) fell more than 10% on Friday after the online apparel retailer released quarterly results. Earnings came in ahead of expectations, but the market was spooked by a full-year revenue forecast that implies growth is slowing.
So what
After markets closed Thursday, Revolve reported third-quarter earnings of $0.13 per share on revenue of $154.2 million, beating analyst expectations for $0.11 per share in earnings on sales of $153 million. Net sales were up 22% from the same three months of 2018, and gross profit was up 24% year over year.
Now what
The issue at Revolve seems to be the company's portfolio of 24 in-house brands, with Karanikolas saying during a post-earnings call that the expansion of owned brands as a percentage of total sales has slowed in the past couple of quarters and that inventory levels are higher than hoped.
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