NYSE$RVLV
Revolve Group Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Revolve Group announced financial results, achieving record EPS and operating cash flow, and improved inventory turns.
Revolve Group reported a decrease in net sales by 12% year-over-year, but achieved record EPS of $0.20 and record operating cash flow of $54 million. The company's REVOLVE segment inventory turned approximately 30% faster year-over-year, contributing to strong cash flow. Despite the decline in net sales, net income and Adjusted EBITDA increased year-over-year due to effective cost controls and operating efficiencies.
- Record EPS of $0.20 was achieved during the quarter.
- Record operating cash flow of $54 million was generated.
- REVOLVE segment inventory turned approximately 30% faster year-over-year.
- Net sales comparisons improved each month throughout the second quarter, with June 2020 increasing YoY.
Headline financials
Revenue & EPS history
Revolve · Revenue · Quarterly
$143M
Revenue by segment
Revolve · $143M total across 2 segments · Q2 2020
- REVOLVE Segment$127M-11.8%88.9%
- FWRD Segment$15.9M-11.6%11.1%
Forward guidance
Since the end of Q2 2020, COVID-19 has continued to have a negative impact on REVOLVE’s operations and financial results. During the approximately 6 weeks since the end of the second quarter on June 30, 2020 (July 1, 2020 through August 10, 2020), net sales growth remained positive and has increased by a low single-digit percentage year-over-year during the period.
Tailwinds
- Net sales growth remained positive.
- Net sales have increased by a low single-digit percentage year-over-year.
- Net sales in the beauty category increased more than 100% for the fourth consecutive month.
- Sales of other “at home” categories also increased significantly year-over-year.
- Newly sourced and expanded relationships with third-party vendors and owned brand suppliers.
Headwinds
- COVID-19 has continued to have a negative impact on REVOLVE’s operations and financial results
- Majority of REVOLVE employees continue to work from their homes
- All in-person brand marketing events remain on hold for the foreseeable future
- Macro environment also remains highly uncertain
- Net sales trends in dresses have improved in recent months, although YoY comparisons remain negative.
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 Q2 2020
-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
| Quarter | Report date | Reaction (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 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro