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Investment Opportunities

Revolve Group: Fashion Retailer for Long-Term Growth

Revolve Group: Fashion Retailer for Long-Term Growth
  • PublishedJune 17, 2022

In the midst of an unsettling stock market, many investors are curious as to what the next best investment opportunity is. And not just for this year, but for the long-term. One industry that is standing out among all others throughout this turbulent time in our financial lives is retail. And one company in particular is none other than Revolve Group.

Revolve Group, formerly known as Advance Holdings, LLC, is a fashion retailer targeting Millennials and Gen Z. It was founded in 2003 and has headquarters in Cerritos, California. This fashion retailer has taken the retail industry by storm. Its platform connects customers and global fashion influencers. In addition to emerging, established and owned brands. Revolve Group provides women’s clothing, footwear, accessories and beauty styles under the brands mentioned above. Additionally, it provides various luxury brands.

This stock is definitely one you’ll want to keep your eye on. So, keep reading to learn more about the company, why it stands out as a top performing retailer and what’s next.

A closer look at Revolve Group stock.

What Makes Revolve Group Stand Out?

Shoppers feel more connected with a store when provided with a personalized experience. And Revolve Group does just that. Its customer experience is second to none. On Revolve’s homepage, you have the option to connect with a style expert. Because online shopping eliminates the in-person, “dressing room” experience, having a style expert on call via a live chat is appealing to potential customers. These experts are available to answer any questions about a product, sizes available and more. You can check it out in more detail here.

In 2015, Revolve Group opened Revolve Social Club, an exclusive in-person shopping experience located in LA for its most loyal customers, brand ambassadors and fashion influencers. The fashion retailer hosts Instagram-worthy moments for its influencer events, and for this year’s pop-up event, it did not disappoint.

From March 4 to April 24, the club opened their doors to the public. To kick off this event, Revolve hosted a party with A-list guests including Winnie Harlow, Rocky Barnes, Kim Kardashian and Sofia Richie. According to founder and Co-CEO, Michael Mente, “Revolve has dominated the online shopping experience for millennials for the past decade, and the Revolve Social Club is where we see retail going next.” Mente added, “The Social Club provides an unprecedented high-touch and personalized shopping experience for our most loyal customers.”

Corporate Overview

The pandemic really caused a shift in merchandise for the widely popular fashion retailer. Rather than just selling lavish party dresses, Revolve Group expanded its apparel to chic loungewear for those staying at home. However, this pivot did not slow them down one bit. The pandemic has actually positively impacted the company in a sales perspective because many are realizing that it’s easier to shop online.

The company’s fourth-quarter and full-year results revealed a $291 million increase in net sales from 2019. It also showed a net income increase of $64.2 million. It’s first-quarter 2022 results highlighted 58% net sales growth year-over-year (YOY) in Q1. In addition to record quarterly growth in current customers and record levels of net income and operating cash flow.

Revolve continues to thrive during this challenging macro environment. In spite of being forced to navigate rocky waters throughout COVID-19, total active customers grew 38% YOY to 2 million. The increase in active customers has contributed immensely to Revolve Group’s continued success.

What’s Next for Revolve Group? 

There is huge long-term opportunity with Revolve Group. With the markets continuing to be unsteady, it’s important to look at the bigger picture. Investing for the future is what many investors are looking for. This stock is worth considering due to its consistent and loyal customer base as well as its increase in net sales and income.

During these hard times of economic hardship and a significant drop in the stock market, it’s crucial to know where to put your money. If you’re looking for the best way to do that, you might want to listen to what the experts have to say. Discover some of the best investment newsletters by leading market experts. These newsletters are insightful for any type of investor, beginner or seasoned. Learn how and what to invest in for both the short and long-term with the knowledgeable guidance of leading market experts.

Written By
Ben Broadwater