![]() They believe they are just getting started overseas. In recent quarters they have delivered really strong growth in key international markets like Canada, China, Australia, the Middle East. The Revolve brand has proven to resonate strongly around the world (in large part due to the highly impactful social media marketing, which knows no borders). The company has barely scratched the surface of international expansion. Despite record growth, the company still has substantial room for growth in its segment. Revolve is still early in the cycle of adding new customers. This helps drive a highly impact, cost effective marketing effort and establishes that strong brand connection to its target customer. This inspires consumers and reinforces the company’s aspirational lifestyle brand image. Revolve maintains a strong presence across all social media outlets. ![]() This has helped Revolve maintain industry leading gross margins, which is a key driver for its profitability and strong free cash flow. Revolve purchases small quantities across a broad range of products and place additional orders for the winners and products of similar styles based on data.ħ7% of Revolve’s net sales were at full price in 2020, despite meaningful Covid-19 headwinds, and the percentage of net sales at full price was even stronger in prior years - 79% of net sales at full price in both 20. Its algorithms capture data in almost real time, which helps to minimize inventory risk. ![]() The company buys inventory in response to consumer signals. This differs from many relatively new commerce players who still report operating losses. Even as the Covid-19 pandemic ravaged 2020, Revolve remained profitable. It is a very-high-growth company, yet it is profitable and generates free cash flow. Revolve has a unique story in the ecommerce space.
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