21.25 +0.18 (0.85%)
After hours: 7:38PM EDT
|Bid||21.10 x 1100|
|Ask||22.00 x 800|
|Day's Range||21.01 - 22.70|
|52 Week Range||20.70 - 48.36|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||48.22|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||41.75|
New IPO Revolve Group has formed a short IPO base with a potential entry of 48.46. Revolve came public in late June at 18 a share, but shot up 69% in its debut. Revolve is an online retailer aimed at millennials and Gen Z. It claims its algorithms let it spot fashion trends. For investors, Revolve has solid sales growth and is already profitable.
During the Lightning Round of Thursday night's "Mad Money" program, a caller asked Jim Cramer about Revolve Group . Revolve has not been trading for long, but we have good price history to work with on Etsy, the Brooklyn, N.Y., online marketplace for craft supplies and vintage goods. In the daily bar chart of Etsy below, we see that prices rallied from last October to early March.
On CNBC's "Mad Money Lightning Round," Jim Cramer said he doesn't like the airlines right now. It's not the right place to be. He would take a look at Delta Air Lines, Inc. (NYSE: DAL ) when ...
Revolve Group has shed nearly a quarter of its value in August, a sharp contrast to a stock that nearly doubled when it went public in June.
(Bloomberg) -- Shares in three of the year’s hottest IPOs, Uber Technologies Inc., Revolve Group Inc. and Fastly Inc., plunged Friday as the latest batch of newly listed companies reported some of the most disappointing results this earnings season.Uber shares ended Friday 6.8% lower after the ride-hailing company missed sales estimates. Revolve fell 15.6% after the fashion e-tailer reported earnings below expectations. And Fastly, which saw its shares dip below its IPO price intraday, declined 18.1% after reporting lighter than expected margins.The disappointment spread to other IPOs that have not even reported yet, with RealReal Inc. shares tumbling 23% to below its IPO price of $20.Call it an upset, given the hype that tends to follow IPOs. Among the nearly 20 freshly listed companies that reported earnings this week, the majority fell in the next session. IPOs are rising 0.2% on average following reports, lagging behind S&P 500 stocks, which climbed 5.3% on average, according to data compiled by Bloomberg.Other newcomers on deck to report earnings include Adaptive Biotechnologies Corp., Greenlane Holdings Inc., RealReal Inc., and Grocery Outlet Holding Inc. They are among the more well-received IPOs of this year with stocks that opened at least 40% above their offer prices. All are first-time reporters.Cross-border IPOs will be tested as well when China’s big brands So-Young International Inc. and Luckin Coffee Inc. do their show-and-tell.(Updates shares in 1st and 2nd paragraphs, adds RealReal shares in 3rd.)\--With assistance from Drew Singer.To contact the reporter on this story: Crystal Kim in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Jennifer Bissell-Linsk, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Revolve Group Inc. reported a surprise loss that sent the stock down 16% in Friday trading, but analysts are still bullish about the newly-public company's prospects. Raymond James analysts maintained their outperform rating and $40 target price based on the consumer's move to e-commerce, Revolve's brand leadership among millennials, its influencer marketing strategies, and successful owned brands. Cowen also maintained its outperform stock rating, though shaved $2 from the target price to $40. "The company is growing sales in the +20% range while also expanding margins via owned brand penetration growth and ongoing operating leverage opportunities," Cowen analysts wrote. "Therefore, EPS growth is expected to be outsized relative to sales - in the +30% range." Farfetch Ltd. stock is down more than 41% in Friday trading after it, too, reported earnings. The two online retail stocks are creating a drag on RealReal Inc. , down 16.7% on Friday, and Stitch Fix Inc. , down 5%. For the year to date, the Amplify Online Retail ETF has rallied 25.7% while the S&P 500 index has gained 16.7%.
Revolve Group Inc. shares plunged 16.5% in the extended session Thursday after the e-commerce company swung to a surprise loss but beat revenue expectations It is the first earnings report since the company's June initial public offering. The company reported a second-quarter net loss of $28.1 million, or 57 cents a share, compared with net income of $10.5 million, or 15 cents a share, in the year-ago period. Revenue rose to $161.9 million from $131.8 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 19 cents a share on revenue of $159.9 million. For the full year, analysts model sales of $605.2 million. The company said it expects full-year net sales of $598 million to $608 million. Revolve stock has fallen 17% in the past month, with the S&P 500 index falling 3.1%.
(Bloomberg Opinion) -- A $69.90 polka dot dress from Zara has become the fashion hit of the summer. Despite little email or social media promotion from the chain, the flowy, universally flattering mid-length frock has become so ubiquitous that someone has created an Instagram account to collect sightings of it out in the fashion wilds – including several that appear to show multiple women wearing it to the same event.The frenzy around the garment epitomizes the ability of the brand’s parent, Inditex SA, to ride a sartorial wave.But the company, founded by Spain’s richest man, Amancio Ortega, is coming under intensified pressure. Rivals in the U.S. and Europe are catching up to its short production lead times. Meanwhile, cheaper upstarts such as Associated British Foods Plc’s Primark and Boohoo Group Plc, are burnishing their fashion credentials.There is no doubt that Inditex’s business model has served it handsomely for more than four decades. But its approach must prove its mettle now more than ever. Otherwise, its advantages risk being gradually whittled away, along with the group’s industry-leading profitability.The retailer, of course, is famous for its fast supply chain. Many competitors order from factories at least six months in advance. But Inditex’s brands, led by Zara, which accounts for about 70% of group sales, produce most of their garments within the current fashion season. About 57% of products are made close to its headquarters in Arteixo, northern Spain, including at facilities in Portugal, Morocco and Turkey. This means Zara clothes can go from design to shop floor within a matter of weeks.Just as important as the tempo is its unique process of developing ideas.It starts with Zara’s army of store managers, who communicate what’s selling and what trends are emerging to the commercial team within Inditex’s sprawling head office. This is not some complex exercise in big data; it’s a conversational approach to absorbing what shoppers want. Designers, who sit nearby, incorporate that feedback into their creations.This has all added up to spectacular growth. But, not only is the company maturing, the competitive landscape has become more difficult. Progress from here will be much harder work.Social media makes it easier for all retailers to see what is hot. Just take those polka dots: Even Topshop, now widely regarded as a bit of a fashion has-been, also managed to produce a stand-out spotty dress. At the same time, retailers from Britain’s Next Plc to Gap Inc. in the U.S. are finally shortening their supply chains. They are still not as speedy as Inditex, but they are narrowing the gap.Another risk is the rise of online shopping. Most stores find that the high cost of fulfilling these sales squeezes profitability. But Inditex’s process is not all that different from what it’s already doing, and that helps shield its margins from the digital onslaught. Store managers telling the head office that they need three puff-sleeve blouses and two pairs of chunky sandals is similar to an individual placing the same order from her laptop. Indeed, Inditex is fond of pointing out that it was a digital company long before the rise of e-commerce.Despite all of its advantages, Inditex’s operating margin has been shrinking for the past six years. Consequently, the group is opening fewer, larger stores, and plans to increase space in prime locations by 5-6% this year. This is the right strategy, but it means that it won't be able to count on large-scale store openings to boost revenue growth. The company is also overhauling its management. Pablo Isla, executive chairman since 2011, will cede his chief executive officer role to Carlos Crespo. By elevating the chief operating officer to the top job, Inditex is clearly trying to wring the maximum benefit from the business model, in order to continue to stay ahead of rivals.At its heart is fashion. We’re at a moment in apparel retailing in which technology is often framed as the lynchpin of any success or turnaround. Investors have been dazzled by newcomers StitchFix Inc. and Revolve Group Inc., which tout their ability to use algorithms to create and buy the right product selection. Executives from the likes of Gap and American Eagle Outfitters Inc. emphasize more personalized digital experiences as a way to win over customers.And while Zara counts on technology, such as by using radio frequency identification to know exactly where every organza halter-neck top and utility boiler suit is, much of its dominance is actually due to something more old-school: it knows how to make clothes that people want – even before they do.Though cost control is always important, what will be crucial for Crespo is ensuring that Zara’s fashion compass stays perfectly calibrated. Putting style at the center of everything the company does is essential, not only to ensure that Zara can continue to charge a premium for the latest looks, but also for ensuring it doesn't emulate rival Hennes & Mauritz AB and end up with a pile of unsold stock.As sales growth has slowed in recent years there have been questions as to whether Inditex has retained its fashion flair, particularly with fewer discernible trends to chase.That polka-dot dress shows that it is still capable of churning out the blockbusters. To stay ahead of increasingly nimble rivals, it must produce a steady stream of equally Instagram-friendly fashion hits.To contact the authors of this story: Andrea Felsted at firstname.lastname@example.orgSarah Halzack at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
IPO stocks have been running hot in 2019 and are targets for investors seeking to outperform the market. Uber stock, Chewy stock and Beyond Meat stock are near buys.
Revolve Group, a profitable online fashion retailer, is IBD Stock Of The Day. Revolve, which went public in June, is setting up in an IPO base.
Bank of America Merrill Lynch has initiated coverage on the newly public Revolve Group LLC (NYSE: RVLV ) The Analyst Justin Post initiated coverage of Revolve with a Neutral rating and $36 price target. ...
After the chaos of the Russell Index rebalancing and the drama of the G-20 meeting, the market is set to take a rest as we head into the Independence Day holiday. RVLV is seen as a leading edge fashion play and should remain in play for that until its earnings reports eventually hit. There are a few biotechnology names on my radar and there is some bounce in gold miners, but this is definitely a very dull market.