What To Expect From Revolve’s (RVLV) Q1 Earnings

Jabin Bastian /
2022/05/02 7:10 am EDT
Add to Watchlist

Online fashion retailer Revolve Group (NASDAQ: RVLV) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter Revolve reported revenues of $239.8 million, up 70.3% year on year, beating analyst revenue expectations by 7.99%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates. The company reported 1.84 million active buyers, up 25% 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 43.5% year on year to $256.7 million, improving on the 22.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.

Revolve Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 9.2%.

Looking at Revolve's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Overstock's revenues decreased 18.7% year on year, missing analyst estimates by 6.49% and Snap reported revenues up 38% year on year, missing analyst estimates by 0.57%. Overstock traded down 4.4% on the results, Snap was up 8.2%. Read our full analysis of Overstock's results here and Snap's results here.

The whole tech sector has been facing a sell-off since late last year and consumer internet stocks have not been spared, with share price down on average 21.8% over the last month. Revolve is down 25.8% during the same time, and is heading into the earnings with analyst price target of $67.4, compared to share price of $42.68.

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.