NYSE$RVLV

Revolve Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong results with record net sales, gross margin expansion, and active customer growth.

Revolve Group, Inc. announced strong Q2 2022 financial results, featuring record net sales that increased 27% year-over-year and gross margin expansion. However, macroeconomic conditions and cost pressures impacted profitability, leading to a moderating growth trend in net sales in June.

  • Net sales reached a record $290.1 million, up 27% year-over-year.
  • Gross margin was 55.9%, the highest ever for a second quarter.
  • Active customers grew by 39% year-over-year, reaching 2.2 million.
  • Net income decreased by 48% year-over-year to $16.3 million, impacted by tax rate differences and operating expense growth.

Headline financials

Total Revenue

$290M

Previous: $229M+26.9%
EPS (adj)

$0.22

Previous: $0.42-47.6%
Gross Margin

55.9%

Previous: 55.6%+0.5%
Active Customers

2.2M

Previous: 1.6K+139217.9%
Total Orders Placed

2.2M

No prior period
Average Order Value

$303.00

Previous: $255.00+18.8%
Capital Expenditures

-$2.52M

Previous: -$1.25M-100.8%
Free Cash Flow

$13.8M

Previous: $30.3M-54.6%
Net Income

$16.3M

Previous: $31.5M-48.4%
Operating Income

$19.3M

Previous: $32.9M-41.4%
Gross Profit

$162M

Previous: $127M+27.5%
Cash & Equivalents

$238M

Previous: $220M+8.3%
Total Assets

$569M

Previous: $428M+32.8%
Stock-Based Comp

$1.4M

Previous: $1.35M+3.2%

Revenue & EPS history

Revolve · Revenue · Quarterly

$290M

Q2 2022+26.9%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Revolve · $245M total across 1 segment · Q2 2022

  • REVOLVE Segment
    $245M+29.6%

Forward guidance

Net sales in July 2022 increased approximately 10% year-over-year amidst an increasingly uncertain macroenvironment.

Tailwinds

  • Continued market share gains
  • Competitive advantages reinforced
  • Brands are resonating with next-generation consumers

Headwinds

  • Increasingly uncertain macroenvironment
  • Inflation at a 40-year high
  • U.S. consumer sentiment reaching a record low
  • More elevated prior-year comparison

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 2022

Historical avgQ2 2022

-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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