RVLV's topline trends have turned awry this year, with softness being witnessed across the board. Since the stock's listing date in June 2019, RVLV has proven to be a source of wealth destruction, contracting by -54%, and also underperforming both the ProShares Online Retail ETF ( ONLN), and the broader SPDR S&P Retail ETF ( XRT) in the process.Ĭould this long-term trend reverse in the months ahead? Well here's a discussion of some key metrics to monitor that could weigh on the stock's prospects RVLV - Key Operating Metrics Interestingly enough, RVLV only makes its merchandise available in limited quantities, and refreshes it quite frequently (typically on a daily basis), thus triggering a degree of FOMO within its target audience that are often susceptible to bouts of instant gratification.ĭespite a relatively niche positioning, it's fair to say that the market doesn't think much of the Revolve story. Revolve's retail operations are also underpinned by an automated data-driven merchandising model that enables the company to adroitly pick up on new trends or styles that also have a low risk of attracting the attention of other retailers. RVLV's focused positioning appears to be gaining popularity in the market with its active customer base currently trending up at a run-rate of almost 20% YoY! This potentially lucrative cohort (for context, millennials' share of US housing net worth has grown by 50% over the last three years) often fails to garner focused attention from national retailers or department stores, who prefer to hedge their bets and service a broader demographic by offering fairly generic assortments. The company's USP is centered around leveraging digital and mobile technology (last year, sales via mobile devices accounted for roughly two-thirds of group sales) to cater to the unique fashion needs of aspirational millennial and Gen Z customers. RVLV's product mix primarily revolves around apparel and footwear, although it also offers beauty, home products, and accessories. Revolve Group ( NYSE: RVLV) with a two-decade-long history in the field of fashion retailing, primarily caters to young aspirational shoppers. Thomas Northcut/DigitalVision via Getty Images Niche Positioning, But So Far, The Market Has Looked Away
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