Revolve (RVLV) Q2 Earnings Report Preview: What To Look For

Adam Hejl /
2022/08/02 4:15 am EDT
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Online fashion retailer Revolve Group (NASDAQ: RVLV) will be reporting earnings tomorrow after market close. Here's what to expect.

Last quarter Revolve reported revenues of $283.4 million, up 58.4% year on year, beating analyst revenue expectations by 10.4%. It was an incredible quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth. The company reported 2.04 million active buyers, up 38.1% year on year.

Is Revolve buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Revolve's revenue to grow 28.1% year on year to $292.8 million, slowing down from the 60.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.

Revolve Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 9.92%.

Looking at Revolve's peers in the consumer internet segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Overstock's revenues decreased 33.5% year on year, missing analyst estimates by 12% and Roku reported revenues up 18.4% year on year, missing analyst estimates by 5%. Overstock traded flat on the results, Roku was down 26.9%. Read our full analysis of Overstock's results here and Roku's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 0.27% over the last month. Revolve is up 0.58% during the same time, and is heading into the earnings with with analyst price target of $49.8, compared to share price of $28.99.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.