Revolve Group Inc Class A

RVLV: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$83.40	Dfwzt	Zgjndzqyw

Near-Term Challenges Abound at Revolve, but Our Long-Term View Intact; Shares Undervalued

Sean Dunlop , Grace Na

Feb 24, 2023

After digesting no-moat Revolve’s fourth-quarter results and factoring in a tepid 2023 outlook, we plan to cut our $36 fair value estimate by a mid-single-digit percentage. This adjustment reflects a combination of lower gross margin guidance (to 52%-53%, down from 54% in 2022), elevated return rates, and lower projected full-price sales mix in 2023.

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