NYSE$RVLV
Revolve Group Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Achieved record results driven by strong execution on merchandising and operational initiatives.
Revolve Group reported strong Q3 2020 results with record net income of $19 million and record Adjusted EBITDA of $24 million, which increased 66% year-over-year. The company's highest-ever gross margin for a third quarter was a key driver of increased profitability.
- Net sales decreased by 2% year-over-year, reflecting a 10-point improvement compared to Q2 2020.
- REVOLVE segment net sales were $130.6 million, a decrease of 3.6% year-over-year.
- FORWARD segment net sales were $20.5 million, an increase of 9.0% year-over-year.
- International net sales increased 18% year-over-year, outperforming domestic net sales.
Headline financials
Revenue & EPS history
Revolve · Revenue · Quarterly
$151M
Revenue by segment
Revolve · $151M total across 2 segments · Q3 2020
- REVOLVE Segment$131M-3.6%86.5%
- FWRD Segment$20.5M+9.0%13.5%
Forward guidance
COVID-19 has continued to have a negative impact on REVOLVE’s operations and financial results in recent weeks since the end of the third quarter. During the month of October 2020, net sales declined by a high single digit percentage year-over-year.
Tailwinds
- Categories such as beauty, accessories, intimates, sweaters / knits and swimwear remained strong in the third quarter.
- Beauty was the standout with net sales increasing more than 100% YoY for the second consecutive quarter.
- Customer shopping and purchasing behavior continues to be influenced by the COVID-19 pandemic.
- Sales of apparel products frequently worn at home and styles for active lifestyles have remained strong.
- Rapid expansion of net sales into newer categories like beauty creates an exciting opportunity to acquire new customers.
Headwinds
- The macro environment remains highly uncertain, as demonstrated by many U.S. states and international countries reporting higher levels of COVID-19 cases in recent weeks, and in many instances, imposing additional social distancing restrictions.
- We believe the absence of an expanded U.S. stimulus measure in recent months, combined with high unemployment rates, adds to the challenging climate for our customer demographic.
- During the month of October 2020, net sales declined by a high single digit percentage year-over-year.
- Outfits for special occasions, such as dresses and skirts, continued to face tough YoY comparisons as many social events have remained on pause.
- COVID-19 has continued to have a negative impact on REVOLVE’s operations and financial results in recent weeks since the end of the third quarter.
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 Q3 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 | — | — | — |
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