NYSE$RVLV

Revolve Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record quarterly net sales and net income.

Revolve Group, Inc. announced strong financial results for Q2 2021, marked by a 60% year-over-year increase in net sales and record net income, driven by new customer additions and reactivated customers.

  • Net sales increased by 60% year-over-year and 41% compared to Q2 2019.
  • Net income reached a record of $32 million, more than doubling compared to Q2 2020 and Q2 2019.
  • FORWARD segment net sales grew by 151% year-over-year and 120% compared to Q2 2019.
  • Cash and cash equivalents increased to $219.6 million, up 73% from June 30, 2020.

Headline financials

Total Revenue

$229M

Previous: $143M+60.1%
EPS (adj)

$0.42

Previous: $0.20+110.0%
Gross Margin

55.6%

Previous: 50.5%+10.1%
Active Customers

1.6K

Previous: 1.5K+1.4%
Average Order Value

$255.00

Previous: $204.00+25.0%
Capital Expenditures

-$1.25M

Previous: $830K-251.0%
Free Cash Flow

$30.3M

Previous: $14.2M+112.7%
Net Income

$31.5M

Previous: $14.2M+121.5%
Operating Income

$32.9M

Previous: $18.8M+75.1%
Gross Profit

$127M

Previous: $72.1M+76.5%
Cash & Equivalents

$220M

Previous: $151M+45.6%
Total Assets

$428M

Previous: $272M+57.2%
Stock-Based Comp

$1.35M

Previous: $868K+55.8%

Revenue & EPS history

Revolve · Revenue · Quarterly

$229M

Q2 2021+60.1%vs Q2 2020
Beat estimate in 11 of 12 quarters(92%)
ActualEstimate

Revenue by segment

Revolve · $229M total across 2 segments · Q2 2021

  • REVOLVE Segment
    $189M+48.7%
  • FWRD Segment
    $39.8M+151.1%

Forward guidance

Net sales in July 2021 increased more than 40% on both a year-over-year basis and on a two-year growth basis versus July of 2019.

Tailwinds

  • Strong growth continued into the third quarter of 2021.
  • Net sales in July 2021 increased more than 40% year-over-year.
  • Net sales in July 2021 increased more than 40% on a two-year growth basis versus July of 2019.
  • Encouraged by the pace of reopening and economic recovery across the United States and in many of key international markets.
  • Plan to invest even further in additional marketing events and programs in the future to continue to build brand over the long term and 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.

Headwinds

  • COVID-19 continues to have a negative impact on REVOLVE’s operations
  • COVID-19 continues to have a negative impact on net sales in some regions
  • Closely monitoring developments for COVID-19 variants that have recently impacted certain regions.
  • Remain cautious as COVID-19 continues to have a negative impact on REVOLVE’s operations
  • Closely monitoring developments for COVID-19 variants that have recently impacted certain regions.

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 2021

Historical avgQ2 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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