Latest news with #MichaelMente
Yahoo
09-05-2025
- Business
- Yahoo
Why Revolve Group Stock Was Sliding Today
Revolve delivered solid first-quarter results, but guidance pushed the stock lower. Management cut its gross margin due in part to tariffs. The stock is down more than 50% from its peak late last year. 10 stocks we like better than Revolve Group › Shares of Revolve Group (NYSE: RVLV) were moving lower today after the online fashion retailer posted results that were roughly in line with expectations but lowered its gross margin guidance for the year. For an industry under pressure, like the fashion industry, Revolve's results were solid, but the guidance -- as well as slower growth to start the second quarter -- seems to have prompted the sell-off. As of 1:03 p.m. ET, the stock was down 7.6% on the news. Overall, Revolve delivered decent results in the first quarter. Revenue rose 10% to $296.7 million, which slightly missed estimates at $297.8 million. Gross margin edged down from 52.3% to 52%, but operating income jumped 57% to $14.7 million as the costs around marketing and selling and distribution grew only modestly. On the bottom line, earnings per share rose $0.15 to $0.16, which beat the consensus by a penny. Noting uncertainties around the global economy and the trade war, Co-CEO Michael Mente added, "We have consistently outperformed through challenging periods in the past and are entering this current cycle on strong footing, giving us the confidence not just to manage through the near-term challenges, but also to gain further market share and drive long-term gains." Looking ahead, the company said that net sales in April slowed to mid-single digit growth, but noted stronger performance in the international segment. For the full year, it cut its gross margin outlook from 52.4%-52.9% to 50%-52%, which is based on the current level of tariffs. Given that, Revolve could be a winner if the trade war eases. With the stock down more than 50% from its peak late last year, Revolve does have some upside potential if it can overcome the macro headwinds. Before you buy stock in Revolve Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Revolve Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $613,546!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $695,897!* Now, it's worth noting Stock Advisor's total average return is 893% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Jeremy Bowman has positions in Revolve Group. The Motley Fool has positions in and recommends Revolve Group. The Motley Fool has a disclosure policy. Why Revolve Group Stock Was Sliding Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Revolve Group Inc (RVLV) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amidst ...
Revolve Group Inc ( NYSE:RVLV ) has moderated its internal revenue growth expectations for the full year due to the challenging macroeconomic environment. The company is experiencing a shift in consumer behavior towards more accessible price points, impacting average order value. The company is leveraging AI technology to enhance customer service and personalization, including a new AI-powered styling feature to improve consumer engagement. The company generated $45 million in operating cash flow, further strengthening its balance sheet with cash and cash equivalents exceeding $300 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Net Income: $11 million or $0.16 per diluted share, up from $0.15 per diluted share in the first quarter of 2024. Story Continues Q & A Highlights Q: Can you clarify the assumptions behind the gross margin guidance, particularly regarding tariffs and mitigation efforts? A: Jesse Timmermans, CFO: The guidance assumes elevated tariff rates currently in place and our best estimate of mitigation efforts. The gross margin impact is significant on a dollar basis, reflecting these assumptions. Q: How quickly can you pivot to a higher percentage of third-party sourced inventory, and what flexibility do you have with owned brands? A: Jesse Timmermans, CFO: We can flex quickly, but it's not necessarily a shift from owned brands to third-party. We remain optimistic about owned brand expansion due to their premium margins. Diversifying owned brand sourcing out of China is a longer-term effort, more of a 2026 story. Q: Are you seeing the tariff news and weaker sentiment affecting customer traffic and conversion trends? A: Jesse Timmermans, CFO: We are observing a shift to more accessible price points, impacting average order value (AOV). This reflects consumer confidence, leading us to moderate expectations for the rest of the year. Q: How are you approaching owned brand launches in light of current challenges? A: Michael Mente, Co-CEO: We've adjusted some plans but remain excited about upcoming launches in H2. We are nimble in this environment and confident in our product offerings. Q: Are you planning to increase promotions to stimulate demand given the shift to more accessible price points? A: Jesse Timmermans, CFO: We are not changing our markdown strategy in response to this shift. Our approach is based on algorithms that consider inventory balance and customer needs, rather than reacting to external promotional activities. Q: How are you managing inventory in light of moderated sales expectations? A: Jesse Timmermans, CFO: We are moderating inventory buys to align with softened sales expectations while maintaining flexibility to respond if demand picks up or tariffs change. Q: What is the outlook for owned brands, and how do you balance this with national brands during uncertain times? A: Michael Mente, Co-CEO: We are confident in our owned brands due to strong internal metrics and see them as a key area for growth and margin improvement. We will continue to invest in them. Q: How are you balancing near-term opportunities with income statement performance, especially with peers pulling back? A: Michael Karanikolas, Co-CEO: We focus on long-term ROI rather than short-term P&L impact. Investments in owned brands, AI technology, and customer experience are prioritized as they offer significant growth and efficiency opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
07-05-2025
- Business
- Yahoo
Revolve (NYSE:RVLV) Posts Q1 Sales In Line With Estimates But Stock Drops
Online fashion retailer Revolve (NASDAQ:RVLV) met Wall Street's revenue expectations in Q1 CY2025, with sales up 9.7% year on year to $296.7 million. Its GAAP profit of $0.16 per share was 14.7% above analysts' consensus estimates. Is now the time to buy Revolve? Find out in our full research report. Revolve (RVLV) Q1 CY2025 Highlights: Revenue: $296.7 million vs analyst estimates of $297.4 million (9.7% year-on-year growth, in line) EPS (GAAP): $0.16 vs analyst estimates of $0.14 (14.7% beat) Adjusted EBITDA: $19.3 million vs analyst estimates of $15.3 million (6.5% margin, 26.1% beat) Operating Margin: 5%, up from 3.4% in the same quarter last year Free Cash Flow Margin: 14.4%, up from 0.7% in the previous quarter Active Customers : 2.7 million, up 152,000 year on year Market Capitalization: $1.36 billion "I am very proud of our team's continued outstanding execution and flexibility that has driven our strong performance," said co-founder and co-CEO Michael Mente. Company Overview Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy. Sales Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Revolve grew its sales at a sluggish 5.1% compounded annual growth rate. This fell short of our benchmark for the consumer internet sector and is a tough starting point for our analysis. Revolve Quarterly Revenue This quarter, Revolve grew its revenue by 9.7% year on year, and its $296.7 million of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 7.9% over the next 12 months. While this projection suggests its newer products and services will fuel better top-line performance, it is still below average for the sector. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Active Customers Buyer Growth As an online retailer, Revolve generates revenue growth by expanding its number of users and the average order size in dollars. Over the last two years, Revolve's active customers , a key performance metric for the company, increased by 7.4% annually to 2.7 million in the latest quarter. This growth rate is slightly below average for a consumer internet business. If Revolve wants to reach the next level, it likely needs to enhance the appeal of its current offerings or innovate with new products.
Fashion Network
06-05-2025
- Business
- Fashion Network
Revolve sales up double-digits on growth across all channels
Revolve Group announced on Tuesday revenues for the first quarter rose 10% to $296.7 million, thanks to growth across all brand channels and geographies at the U.S. luxury retail firm. The Los Angeles-based company said Revolve segment sales were $254.4 million, a year-over-year increase of 11%, while sister brand Fwrd logged a 3% increase in sales to $42.3 million. By region, domestic sales were $239.2 million, up 9%, outpaced by international sales, which surged 12% to $57.5 million, for the quarter ending March 31. In line with the sales growth, the company said net income totalled $11.4 million, an increase from $10.9 million in the first quarter of 2024. "Our strong execution within a dynamic macro environment resulted in outstanding first quarter results, highlighted by double-digit top-line growth, 57% growth in operating income year-over-year, and $45 million in operating cash flow that further strengthened our balance sheet," said co-founder and co-CEO, Mike Karanikolas. "We achieved these strong results while continuing to invest in key initiatives that we believe will drive long-term success, which is especially important during this uncertain time when industry peers with weaker foundations are dialing back investment plans." The company said that post-first quarter, sales in April increased by a mid-single digit percentage year-over-year, highlighted by comparably stronger net sales growth in international markets. "I am very proud of our team's continued outstanding execution and flexibility that has driven our strong performance," said co-founder and co-CEO Michael Mente. "It is the strength of our team, our solid financial foundation and our flexibility that we believe position us well to navigate through the current geopolitical and macro-uncertainty while continuing to invest in the exciting growth opportunities ahead. We have consistently outperformed through challenging periods in the past and are entering this current cycle on strong footing, giving us the confidence not just to manage through the near-term challenges, but also to gain further market share and drive long-term gains."
Fashion Network
06-05-2025
- Business
- Fashion Network
Revolve sales up double-digits on growth across all channels
Revolve Group announced on Tuesday revenues for the first quarter rose 10% to $296.7 million, thanks to growth across all brand channels and geographies at the U.S. luxury retail firm. The Los Angeles-based company said Revolve segment sales were $254.4 million, a year-over-year increase of 11%, while sister brand Fwrd logged a 3% increase in sales to $42.3 million. By region, domestic sales were $239.2 million, up 9%, outpaced by international sales, which surged 12% to $57.5 million, for the quarter ending March 31. In line with the sales growth, the company said net income totalled $11.4 million, an increase from $10.9 million in the first quarter of 2024. "Our strong execution within a dynamic macro environment resulted in outstanding first quarter results, highlighted by double-digit top-line growth, 57% growth in operating income year-over-year, and $45 million in operating cash flow that further strengthened our balance sheet," said co-founder and co-CEO, Mike Karanikolas. "We achieved these strong results while continuing to invest in key initiatives that we believe will drive long-term success, which is especially important during this uncertain time when industry peers with weaker foundations are dialing back investment plans." The company said that post-first quarter, sales in April increased by a mid-single digit percentage year-over-year, highlighted by comparably stronger net sales growth in international markets. "I am very proud of our team's continued outstanding execution and flexibility that has driven our strong performance," said co-founder and co-CEO Michael Mente. "It is the strength of our team, our solid financial foundation and our flexibility that we believe position us well to navigate through the current geopolitical and macro-uncertainty while continuing to invest in the exciting growth opportunities ahead. We have consistently outperformed through challenging periods in the past and are entering this current cycle on strong footing, giving us the confidence not just to manage through the near-term challenges, but also to gain further market share and drive long-term gains."
