1/27/2024 0 Comments Happy returns revolveThe company said it will utilize roughly $41 million of this for repurchasing B shares from existing investors. Seventy-five percent of the shares in the IPO are being sold by existing stockholders.Īn estimated $43 million or so in net proceeds will be received directly by Revolve Group. (B shares, which confer much stronger voting rights, are not being sold.) The A shares will subsequently be listed on the New York Stock Exchange under the ticker symbol RVLV, and start trading on Friday, June 7. Just over 11.7 million A shares of Revolve Group are being sold in the IPO, at a per-share price between $16 and $18. The volatility and unpredictability are too high for me. So while I think there's much to like with Revolve Group, I'd probably be hesitant to add it to my shopping bag. No matter how sharp company management might be - and it seems quite smart in Revolve Group's case - there's no guarantee it will maintain any kind of grip on its target market(s). Look at the volatility of recent(ish) fashion sector IPO stocks headed by clever people, like styling service Stitch Fix, luxury portal Farfetch, and conglomerate Capri Holdings (NYSE: CPRI) - known as Michael Kors prior to its purchase of Versace and Jimmy Choo: This is why the fundamentals of this business tend to be very up and down. It's basically a rule now that any ambitious fashion or lifestyle brand has to carve out a notable presence on social media sites.Īnd even for experts and veterans in the fashion industry, it's awfully hard to determine when, if, and for how long a brand or a product line can be hot. The thing is, it's hardly the only fashion retailer living in the digital world - in fact, there's broad realization across the industry that sales need to be driven by web "stickiness," and that influencers matter. Also, it really seems to have its finger on the pulse of digital marketing and sales. I admire the company for being consistently profitable, at least to the degree that's being presented.
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