NYSE$RVLV

Revolve Group Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported a decrease in net sales but an increase in net income and gross margin.

Revolve Group reported a decrease in net sales by 5% but a significant increase in net income by 126% and an increase in gross margin to 56.0% for the fourth quarter of 2020.

  • Total net sales decreased by 5% year-over-year.
  • Gross margin increased by 305 basis points year-over-year, reaching 56.0%.
  • Net income increased by 126% year-over-year.
  • Diluted earnings per share increased by 117% year-over-year.

Headline financials

Total Revenue

$141M

Previous: $148M-4.6%
EPS (adj)

$0.26

Previous: $0.12+116.7%
Gross Margin

56.0%

Previous: 52.9%+5.9%
Active Customers

1.5K

Previous: 1.5K-1.1%
Average Order Value

$256.00

Previous: $282.00-9.2%
Adjusted EBITDA

$18.7M

Previous: $13.7M+37.3%
Capital Expenditures

$480K

Previous: $998K-51.9%
Free Cash Flow

-$2.93M

Previous: $13.2M-122.2%
Net Income

$19M

Previous: $8.41M+125.6%
Operating Income

$16.6M

Previous: $10.6M+56.2%
Gross Profit

$78.8M

Previous: $78.1M+0.9%
Cash & Equivalents

$146M

Previous: $65.4M+123.2%
Total Assets

$306M

Previous: $232M+31.6%
Stock-Based Comp

$952K

Previous: $522K+82.4%

Revenue & EPS history

Revolve · Revenue · Quarterly

$141M

Q4 2020-4.6%vs Q4 2019
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Revenue by segment

Revolve · $141M total across 2 segments · Q4 2020

  • REVOLVE Segment
    $119M-5.0%
  • FWRD Segment
    $21.8M-2.3%

Forward guidance

During the approximately seven weeks since December 31, 2020 (January 1, 2021 through February 21, 2021), net sales increased by a low single-digit percentage year-over-year during the period.

Tailwinds

  • Improvement in trend compared to the year-over-year decline in net sales reported for the fourth quarter of 2020
  • Continued strong growth in international markets
  • Sequentially improved results in the U.S.

Headwinds

  • Macro environment remains highly uncertain
  • Operations and financial results continue to be negatively influenced by COVID-19
  • Associated social distancing restrictions in many key markets

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 Q4 2020

Historical avgQ4 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

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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