RVLV - Why Revolve Group Stock Dropped 17% in August
Shares of digital fashion company Revolve Group (NYSE: RVLV) lost 17% of their value in August, according to data provided by S&P Global Market Intelligence . The company delivered a pretty good second-quarter earnings report, but it warned of pressure for the rest of the year.
Revolve Group operates a website selling fashion goods for millennials. It uses artificial intelligence and machine learning to curate its collection of 70,000 products, and it generates customer interest and loyalty through its vast network of social media influencers and celebrities. It's a fashion company for the digital age.
Business has been brisk, especially as more people got online during the pandemic. It's been posting double-digit growth and robust profitability for many quarters, but it's hitting a snag in the middle of 2022 as inflation and rising costs are finally catching up. Sales increased 27% year over year in the second quarter, but net income sank 48%. Gross margin inched up 0.3%.
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Why Revolve Group Stock Dropped 17% in August