"Consistent with prior commentary, we continue to expect the second quarter ending June 30, 2022 to be our largest sales quarter of the year as our core customer gears up for a busy travel and event calendar in the warm summer months ahead,” the company stated.
LikeFolio consumer demand data confirms that Revolve’s current quarter pace looks incredible:
This tells us that Wall Street may be underestimating Revolve’s potential for future growth.
Additionally, elevated short interest (~12% of the float) will likely add fuel to the fire of the stock’s eventual rebound.
This combination presents an excellent set-up for long-term investors armed with real-time consumer insights.
Despite inflation and rising gas prices, retail spend is still rising on a YoY basis…albeit at a slower rate.
Digging deeper, data suggests one retail sector is outperforming regarding YoY growth. Clothing and accessories sales increased by +7% YoY.
And Revolve is benefitting tremendously from this tailwind, at least when it comes to rising consumer demand…
Revolve Group (RVLV) Demand Rocketing as Social Events Resume
Revolve Group is a next-generation fashion eCommerce retailer for Millennial and Generation Z consumers.
Consumer mentions of Revolve have exploded higher over the last couple of weeks, at +66% QoQ and +105% YoY.
What’s going on?
Celebrity partnerships and special events are driving purchases. Loyal LikeFolio readers will recall that this was the same strategy that propelled Crocs (CROX) from under $10 to over $180 in 2020/2021.
We’re beginning to see signals that Revolve could be on a similar path of consumer adoption.