Online fashion retailer Revolve (NASDAQ: RVLV) will be reporting results tomorrow afternoon. Here’s what to expect.
Revolve beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $293.7 million, up 13.9% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and number of active customers in line with analysts’ estimates. It reported 2.67 million active buyers, up 4.9% 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 9.9% year on year to $297.4 million, a reversal from the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally 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 consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Amazon delivered year-on-year revenue growth of 8.6%, meeting analysts’ expectations, and Wayfair reported flat revenue, topping estimates by 0.7%. Amazon’s stock price was unchanged after the resultswhile Wayfair was up 11.5%.
Read our full analysis of Amazon’s results here and Wayfair’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 16.9% on average over the last month. Revolve is down 1.2% during the same time and is heading into earnings with an average analyst price target of $26.80 (compared to the current share price of $19.39).
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