RVLV - Revolve stock slides as analysts lose faith after earnings disappointment
Revolve Group ( NYSE: RVLV ) shares sustained declines as analysts negatively assessed a messy second quarter earnings release.
The California-based online retailer posted misses on top and bottom lines for its second quarter earnings release, owing to significant increases in expenses. Additionally, inventories grew to $208.5M, a 16% sequential leap and a stark 75% jump from the inventory balance of $118.8M in the prior year quarter.
Given the inauspicious results, Wedbush analyst Tom Nikic downgraded the name to “Neutral” from “Outperform” and slashed his price target by over 60%.
“While we like the business at a high level, we just think there's very little visibility right now,” he advised. “The top-line is decelerating rapidly, costs are rising, inventory is too high, and it's unclear when numbers will bottom.”
Shares of Revolve Group slid 12.62% on Thursday, moving toward Nikic’s new target price of $23.
Read more on the details of the company’s disappointing earnings release .
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Revolve stock slides as analysts lose faith after earnings disappointment