Revolve Group Intrinsic Value – REVOLVE GROUP Reports Q3 Earnings with GAAP EPS Beating Estimates, Revenue Falling Short
May 5, 2023
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Revolve Group ($NYSE:RVLV), Inc. recently reported its third-quarter earnings, revealing an unexpected beat in its GAAP earnings per share (EPS). REVOLVE GROUP is a global platform for premier fashion and lifestyle brands. It has become a leader in digital commerce and has established itself as a trusted source for discovery and inspiration in the fashion and lifestyle space. It provides an innovative technology platform that connects a deeply engaged community of millions of consumers worldwide with the world’s leading fashion and lifestyle brands. By leveraging its data-driven insights, REVOLVE GROUP creates unique experiences that inspire customers to shop, engage, and share with their peers.
Earnings
This marks a 8.1% increase in total revenue and a 73.2% decrease in net income in comparison to the same period last year. Over the last three years, REVOLVE GROUP‘s total revenue has grown steadily, reaching from 140.75M USD to 259.15M USD. Despite falling short of analysts’ estimates in terms of revenue, REVOLVE GROUP’s reported earnings per share (GAAP EPS) beat expectations.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Revolve Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.1k | 58.7 | 5.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Revolve Group. More…
| Operations | Investing | Financing |
| 23.44 | -5.17 | 0.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Revolve Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 579.32 | 199.75 | 5.17 |
Key Ratios Snapshot
Some of the financial key ratios for Revolve Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.4% | 15.0% | 6.6% |
| FCF Margin | ROE | ROA |
| 1.7% | 12.2% | 7.9% |
Share Price
On Wednesday, REVOLVE GROUP stock opened at $19.9 and closed at $20.0, down by 0.3% from prior closing price of 20.1. This indicates that investors were not overly impressed with the earnings report, though the EPS beat estimates. It is yet to be seen if the stock will continue to decline or if it can gain back these losses in the near future. Live Quote…
Analysis – Revolve Group Intrinsic Value
At GoodWhale, we conducted an analysis of REVOLVE GROUP‘s wellbeing and have come to the conclusion that their fair value is around $49.9. This assessment was made using our proprietary Valuation Line. This means that the REVOLVE GROUP stock is currently being traded at $20.0, which is an astonishing undervaluation of 59.9%. We believe that investors have the opportunity to capitalize on this strong undervalued stock. More…
Peers
In the world of online retail, a few companies stand out amongst the rest. Revolve Group Inc, Tapestry Inc, Yuka Group Inc, and The RealReal Inc are all leaders in the industry, but only one can come out on top. These companies are constantly vying for market share, and each has its own unique strengths and weaknesses. It will be interesting to see which company comes out on top in the end.
– Tapestry Inc ($NYSE:TPR)
Tapestry, Inc., through its subsidiaries, designs and markets luxury accessories and lifestyle collections in the United States and internationally. The company operates in two segments, Coach and Kate Spade. It offers handbags, wallets, business cases, travel accessories, footwear, eyewear, watches, ready-to-wear, jewelry, fragrances, and related accessories. The company sells its products through wholesale distribution, including U.S. department stores, specialty stores, and international distributors; and directly to customers through company-operated stores, e-commerce sites, and catalogs. As of April 1, 2018, it operated 468 Coach stores in North America; 298 Coach stores in Asia; 70 Coach stores in Europe; 27 Stuart Weitzman stores in North America; and 19 Stuart Weitzman stores in Europe, the Middle East, and Asia. The company was formerly known as Fifth & Pacific Companies, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.
– Yuka Group Inc ($OTCPK:YUKA)
Yuka Group Inc is a Japanese conglomerate with a market capitalization of 30 billion as of 2022. The company has a Return on Equity of -29798.65%. Yuka Group Inc is involved in a variety of businesses including electronics, automotive, and financial services. The company has been struggling in recent years, and its stock price has reflected this.
– The RealReal Inc ($NASDAQ:REAL)
The RealReal Inc is a online luxury consignment company. The company was founded in 2011 and is headquartered in San Francisco, California. The company operates in two segments: The RealReal and Goop. The RealReal operates an online marketplace for consignment of luxury goods. The company sells women’s and men’s apparel, shoes, handbags, accessories, watches, jewelry, and art. The company was founded by Julie Wainwright. The Goop segment includes the operations of goop.com, which is a digital media and e-commerce company that offers content, products, and services.
Summary
Revolve Group, an e-commerce fashion and lifestyle retailer, reported their quarterly earnings which beat the estimated earnings per share (EPS) by $0.05, coming in at $0.19. However, their total revenue of $279.61 million fell short of estimates by $10.53 million. Investors should look carefully at the earnings and revenue numbers of Revolve Group to make an informed investment decision as they are important indicators of the company’s financial performance.
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