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Revolve Earnings: What To Look For From RVLV

RVLV Cover Image

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

Revolve beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $282.5 million, up 3.2% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but slow revenue growth. It reported 2.58 million active buyers, up 4.8% year on year.

Is Revolve a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Revolve’s revenue to grow 5.3% year on year to $271.2 million, a reversal from the 4.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 per share.

Revolve Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Revolve has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Revolve’s peers in the online retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carvana delivered year-on-year revenue growth of 31.8%, beating analysts’ expectations by 5.3%, and Amazon reported revenues up 11%, topping estimates by 1%. Carvana traded up 19.2% following the results while Amazon was also up 6.3%.

Read our full analysis of Carvana’s results here and Amazon’s results here.

There has been positive sentiment among investors in the online retail segment, with share prices up 6% on average over the last month. Revolve is up 5.9% during the same time and is heading into earnings with an average analyst price target of $24.20 (compared to the current share price of $26.20).

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