Social-media Influencers Are the Drivers Behind Revolve Sales and Growth
Revolve, the online retailer planning to go public soon with an IPO, said in recent filings with the Securities and Exchange Commission that its revenues in 2018 were $498.7 million, up from nearly $400 million the previous year.
For the three months ending March 31 of this year, the company reported net sales of $137.3 million and net income of $4.9 million.
It also noted that its company, based in Cerritos, Calif., has been able to grow with the help of more than 3,500 influencers.
Targeting an audience of mainly millennials and Gen Z consumers, the company relies on its proprietary e-commerce platform, partnerships and social events to connect with its audience.
During the 12-month period ending March 31, 2018, Revolve had a monthly average of 7.8 million unique visitors, and that increased to 9.8 million unique visitors a year later.
According to documents filed May 28 with the Securities and Exchange Commission, the company is applying to sell $200 million of Class A common stock during an initial public offering.
The company is offering 2.9 million shares of Class A common stock with an additional 8.8 million shares to be offered from stockholders. During its IPO, the company anticipates a per-share price between $16 and $18 under an approved New York Stock Exchange symbol of RVLV.
The filing comes at a time when Revolve has a portfolio of 21 owned brands and 250 collections under its Forward luxury segment, in addition to 850 emerging and established labels.
According to the SEC filing, the company’s owned brands represent eight out of 10 of its top labels in addition to 32.6 percent of the Revolve segment’s net sales.
Founded in 2003 by co–chief executives Michael Mente and Mike Karanikolas, Revolve offers more than 45,000 products with an average of over 1,000 new styles launched each week.
While the company mentioned in its SEC filing that it faces competition from other e-commerce platforms and more-traditional retailers, Revolve’s growth has been significant over the 16 years it’s been in business.
In 2015, it acquired downtown Los Angeles–headquartered Alliance Apparel, maker of Grlfrnd Denim, Lovers + Friends, Tularosa and NBD.