Revolve Group: Softer Shopping Behavior Stalls Top-Line Momentum, but Long-Term Growth Inspirational

The Revolve Group has carved out an interesting competitive niche in the attainable luxury category, leaning heavily into the strengths of the e-commerce channel--breadth of selection, scalability, and ubiquity of access--to reach a mobile-first, millennial and Gen Z audience across its online properties. With the firm cycling through 219,000 styles on its REVOLVE and FRWD (luxury) marketplaces during 2022, and with roughly 1,000 new styles launching weekly, the firm has positioned itself as an "online source for discovery and inspiration," capturing more than $500 in after-return spend among its base of 2.3 million active buyers, by our estimates.