![]() If we make some comparisons with peers ( according to Seeking Alpha) we can see the following. This is a nice cushion to have in times of macro-economic troubles. Furthermore, RVLV has a pristine cash position of $244 mln, which is almost 14% of its current market cap. With a current (PE) (FWD) ratio of 30.77 it is still relatively expensive, but for a company with the potential of Revolve, we believe this is definitely not too high to make a first initial investment. In addition, Revolve is already a profitable company, which we love to see for a growth company. We would have preferred to see a higher net income and higher (EPS), but when we take the current macro conditions into consideration I believe these are still great results and this indicates for me that RVLV shows resilience. Yes, some of these numbers are not great. Diluted earnings per share (EPS) was $0.16, a year-over-year decrease of 27%.Gross margin (TTM): 54.57% decrease of 0.38% according to Seeking Alpha.Gross profit (Q3):$142.4 million, an increase of 6% YoY. ![]() Total net sales (Q3): $268.7 million, an increase of 10% YoY.The numbers below are from the Q3 Presentation, unless otherwise mentioned "With our profitable business model and strong balance sheet, we are excited about our continued investments in our brand and technology that we believe will enable us to further capture market share in pursuit of our very large global market opportunity," - Mente Furthermore, we generated meaningful growth in cash flow year-over-year, further bolstering our already strong balance sheet." - Karanikolas We delivered another profitable quarter with double-digit growth in net sales in the third quarter of 2022, despite the increasingly challenged macro environment. Q3 2022 was another great quarter for Revolve. Revolve Website () Revolve's Strong Q3 2022 Results Despite Challenging Macro Environment This could make the business a bit more recession-proof as they have a high net worth target audience. The company mostly sells medium-to-high-value items. Millennials and Gen Z are increasingly buying products/services based on whether they feel connected with the values of that brand. Revolve Group is a fashion retailer which targets Millennials and Gen Z. This is in huge contrast to other growth companies like Oatly Group ( OTLY ), which saw a significant decrease in gross profits and a big increase in operating loss. Even though its share price got slaughtered along with other growth companies, Revolve Group's biggest distinction was that it was able to resume growing after Covid-19 tailwinds ended. ![]() ![]() Revolve Group isn't like most of these other growth companies though. We believe RVLV is an amazing company and will consider it a buy once it reaches the $20 level. The shares dropped as much as 77% from its all-time high in November of 2021 to its 2022 low at $20.17 last month. Like many other growth companies, Revolve Group ( NYSE: RVLV) has suffered significantly. NeonShot/iStock via Getty Images Revolve Group: A Growth Company with Resilience in the Face of Adversity ![]()
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