REVOLVE GROUP shares drop sharply after missing earnings expectations
August 4, 2022
Trending News 🌧️
On Wednesday, Revolve Group ($NYSE:RVLV) shares experienced a sharp drop after the company missed earnings expectations. Revolve Group, an online retailer based in California, posted GAAP EPS of $0.22, missing estimates by $0.09. The company also fell short of revenue expectations, posting $290.05 million in revenue as opposed to the expected $2.83 million. Net income came in at $16.3 million, a year-over-year decrease of 48%. The company attributed the missed earnings to “meaningful differences” in tax rates and surging operating expenses. “Growth in total operating expenses outpaced our year-over-year growth in net sales, primarily due to deleverage in selling and distribution costs,” the company said. It is yet to be seen how this will affect Revolve Group’s market and earnings in the long term.
The company’s fundamentals reflect its long-term potential. The below analysis on REVOLVE GROUP is made simple by the VI app. According to the VI Risk Rating, REVOLVE GROUP is a medium risk investment in terms of financial and business aspects. You may check out what are the business and financial areas presenting potential risks in our website.
Leave a Comment