NYSE$RVLV

Revolve Group Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Announced first quarter 2021 financial results, highlighted by record net sales and net income.

Revolve Group reported record quarterly net sales of $178.9 million, a 22% year-over-year increase, and a record net income of $22.3 million. The company saw significant growth in March, driven by a return to social outing styles and continued strength in at-home products.

  • Delivered record quarterly net sales, up 22% year-over-year and 30% over Q1 2019.
  • Achieved record net income, a 435% increase over the prior year.
  • Generated $33 million in cash flow from operating activities, a 300% increase year-over-year.
  • Experienced strong recovery in March with growth in social outing styles and continued growth in at-home related products.

Headline financials

Total Revenue

$179M

Previous: $146M+22.5%
EPS (adj)

$0.30

Previous: $0.06+400.0%
Gross Margin

54.0%

Previous: 48.6%+11.1%
Active Customers

1.5K

Previous: 1.5K-3.3%
Total Orders Placed

1.3K

Previous: 1.2K+9.4%
Average Order Value

$256.00

Previous: $259.00-1.2%
Adjusted EBITDA

$23.3M

Previous: $5.61M+316.1%
Capital Expenditures

-$736K

Previous: $551K-233.6%
Free Cash Flow

$21.5M

Previous: $4.16M+417.7%
Net Income

$22.3M

Previous: $4.16M+435.4%
Operating Income

$21.2M

Previous: $3.85M+450.5%
Gross Profit

$96.7M

Previous: $71M+36.2%
Cash & Equivalents

$183M

Previous: $104M+76.6%
Total Assets

$369M

Previous: $259M+42.3%
Stock-Based Comp

$976K

Previous: $564K+73.0%

Revenue & EPS history

Revolve · Revenue · Quarterly

$179M

Q1 2021+22.5%vs Q1 2020
Beat estimate in 10 of 11 quarters(91%)
ActualEstimate

Revenue by segment

Revolve · $179M total across 2 segments · Q1 2021

  • REVOLVE Segment
    $152M+22.2%
  • FWRD Segment
    $26.7M+23.8%

Forward guidance

Results for April 2021 continued the momentum from Q1, with year-over-year net sales growth outpacing the 22% reported in Q1. The company is encouraged by vaccine uptake and economic recovery, and plans to invest further in marketing events.

Tailwinds

  • Year-over-year growth in net sales in April meaningfully outpacing the 22% year-over-year growth reported for the first quarter of 2021.
  • Encouraged by the pace of vaccine uptake and signs of healthy economic recovery across the United States and in many of key markets around the world.
  • Recently resumed in-person marketing events with appropriate safety protocols, successfully hosting impactful marketing events in Australia and Los Angeles.
  • Plan to invest even further in additional marketing events and programs in the near term to capitalize on the reopening opportunity with newly vaccinated consumers excited to socialize in person, travel and enjoy the active lifestyle they have come to associate with REVOLVE.
  • Strong cash flow further strengthened our balance sheet and liquidity.

Headwinds

  • COVID-19 has continued to have a negative impact on REVOLVE’s operations and on net sales in certain regions.
  • Expect return rate tailwinds to reverse beginning in the second quarter of 2021.
  • Expect this dynamic to cause selling and distribution expenses, where the majority of costs are shipping related, to increase year over year as a percentage of net sales.
  • Expect more difficult year-over-year comparisons for fulfillment expenses expressed as a percentage of net sales in upcoming quarters.
  • Absent such discrete tax items in future quarters, we expect our effective tax rate to be around 25%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.5%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-4.7%

Avg return

30 days after

38%

12 / 32 earnings

Positive

+31.7%

Q3 2024

Best reaction

-19.3%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-11.0%-17.6%
Q4 2025-5.4%-7.0%-15.4%
Q3 2025+12.2%+10.9%+30.0%
Q1 2025-9.6%+4.5%+17.6%
Q4 2024-5.0%-11.7%-21.4%
Q3 2024+31.7%+24.5%+43.1%
Q2 2024+30.8%+26.2%+21.2%
Q1 2024+4.6%+2.9%-13.5%
Q4 2023+25.8%+33.9%+24.7%
Q3 2023-2.9%-3.1%+5.9%
Q2 2023-7.5%-6.7%-21.3%
Q1 2023-7.8%-8.1%-17.6%
Q4 2022+1.1%+6.3%-1.2%
Q3 2022-3.4%-11.3%+20.5%
Q2 2022-8.2%+2.7%-19.1%
Q1 2022-16.0%-25.0%-29.6%
Q4 2021-1.6%-9.7%+3.4%
Q3 2021+6.2%+12.5%-9.0%
Q2 2021-17.4%-11.1%-17.8%
Q1 2021+9.8%-5.3%+6.7%
Q4 2020+8.3%+25.8%+20.4%
Q3 2020-3.8%-4.5%+10.2%
Q2 2020+27.6%+17.2%-4.8%
Q1 2019-8.4%-6.9%+3.2%
Q1 2020+3.0%-6.8%+4.3%
Q4 2017-19.3%-18.4%-57.0%
Q4 2019-11.0%-13.6%-51.3%
Q3 2019-16.9%-21.1%-14.9%
Q3 2018-16.9%-21.1%-14.9%
Q4 2018-1.4%-9.3%-4.1%
Q2 2018-1.4%-9.3%-4.1%
Q2 2019-12.9%-14.1%-25.9%
Q1 2018
Q3 2017
Q2 2017
Q1 2017

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