Online fashion retailer Revolve (NYSE: RVLV) will be reporting results this Tuesday after the bell. Here’s what to look for.
Revolve beat analysts’ revenue expectations last quarter, reporting revenues of $342.9 million, up 15.6% year on year. It was a strong quarter for the company, with a narrow beat of analysts’ EBITDA estimates and solid growth in its buyers. It reported 2.93 million active buyers, up 8.3% year on year.
Is Revolve a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Revolve’s revenue to grow 10.9% year on year, improving from the 9.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Revolve has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Revolve’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Amazon delivered year-on-year revenue growth of 19.6%, beating analysts’ expectations by 2%, and Carvana reported revenues up 52.4%, topping estimates by 7.7%. Amazon traded up 15.4% following the results while Carvana was down 7.7%.
Read our full analysis of Amazon’s results here and Carvana’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Revolve is up 12.3% during the same time and is heading into earnings with an average analyst price target of $29.69 (compared to the current share price of $25.11).
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