Revolve Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Revolve Group, Inc. has filed its 2023 10-K, detailing financial performance, executive compensation, and risk factors for the fiscal year ending December 31, 2023.</b>

AI Summary

Revolve Group, Inc. (RVLV) filed a Annual Report (10-K) with the SEC on February 27, 2024. Revolve Group, Inc. filed its 2023 Form 10-K on February 27, 2024, reporting on the fiscal year ending December 31, 2023. The company's fiscal year covers 354 days. Key financial data points such as revenue, net income, EPS, debt/equity, cash, operating margin, gross margin, total assets, and total debt are included in the filing. The filing details executive compensation, including total compensation for named executives. Risk factors related to regulatory, market, operational, financial, and legal aspects are outlined.

Why It Matters

For investors and stakeholders tracking Revolve Group, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Revolve Group's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed risk factors section highlights potential challenges that could impact Revolve Group's business, offering insights into the company's strategic planning and risk mitigation efforts.

Risk Assessment

Risk Level: medium — Revolve Group, Inc. shows moderate risk based on this filing. The company faces market and operational risks inherent in the retail sector, including product concentration and customer relationships, which could impact sales and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Revolve Group's performance and potential challenges in the e-commerce fashion market.

Key Numbers

• 354 — Days in fiscal year (Fiscal year 2023)
• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-27 — Filing Date (10-K submission)
• 001-38927 — SEC File Number (Company's SEC filing number)

Key Players & Entities

• Revolve Group, Inc. (company) — Filer name
• 0000950170-24-021244 (other) — Accession number
• 20231231 (date) — Conformed period of report
• 20240227 (date) — Filed as of date
• CERRITOS, CA (location) — Business address city and state
• Bank Of America NA (company) — Revolving credit facility member
• Michael Mente (person) — Executive name
• RVLV (ticker) — Ticker symbol

FAQ

Risk Factors

• Product Concentration Risk [medium — market]: The company faces risks related to the concentration of its sales revenue in specific product categories such as Fashion Apparel and Beauty.
• Customer Concentration Risk [medium — market]: The company is exposed to risks associated with a concentration of its sales revenue from a limited number of customers.
• Customer Relationships [medium — operational]: The company's ability to maintain and grow its customer relationships is critical to its success.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-27: 10-K Filing Date — Date Revolve Group, Inc. submitted its annual report.

Key Financial Figures

• $0.001 — tered Class A Common Stock, par value $0.001 per share RVLV New York Stock Excha
• $16.40 — New York Stock Exchange on that date of $16.40. DOCUMENTS INCORPORATED BY REFERENCE
• $1.1 billion — premium fashion. In 2023, we generated $1.1 billion in net sales, served over 2.5 million a
• $297 — ted States. Our average order value was $297 in 2023, which is reflective of our foc

Filing Documents

• rvlv-20231231.htm (10-K) — 2788KB
• rvlv-ex21_1.htm (EX-21.1) — 9KB
• rvlv-ex23_1.htm (EX-23.1) — 3KB
• rvlv-ex31_1.htm (EX-31.1) — 13KB
• rvlv-ex31_2.htm (EX-31.2) — 13KB
• rvlv-ex32_1.htm (EX-32.1) — 10KB
• rvlv-ex97_1.htm (EX-97.1) — 46KB
• img167122397_0.jpg (GRAPHIC) — 26KB
• img167122397_1.jpg (GRAPHIC) — 49KB
• img167122397_2.jpg (GRAPHIC) — 39KB
• img167122397_3.jpg (GRAPHIC) — 15KB
• img167122397_4.jpg (GRAPHIC) — 15KB
• 0000950170-24-021244.txt (&nbsp;) — 10844KB
• rvlv-20231231.xsd (EX-101.SCH) — 1342KB
• rvlv-20231231_htm.xml (XML) — 1894KB

Business

Business 7 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 50 Item 1C. Cybersecurity 50 Item 2.

Properties

Properties 51 Item 3.

Legal Proceedings

Legal Proceedings 51 Item 4. Mine Safety Disclosures 51 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 52 Item 6. [Reserved] 54 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 55 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 71 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 72 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 98 Item 9A.

Controls and Procedures

Controls and Procedures 98 Item 9B. Other Information 99 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 99 PART III Item 10. Directors, Executive Officers and Corporate Governance 100 Item 11.

Executive Compensation

Executive Compensation 100 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 100 Item 13. Certain Relationships and Related Transactions, and Director Independence 100 Item 14. Principal Accountant Fees and Services 100 PART IV Item 15. Exhibits and Financial Statement Schedules 101 Item 16. Form 10-K Summary 104

Signatures

Signatures 105 2 SUMMARY RISK FACTORS Our business is subject to numerous risks and uncertainties, including those highlighted in the section of this report titled "Risk Factors." The following is a summary of the principal risks we face: Economic downturns and other macroeconomic conditions or trends may adversely affect consumer discretionary spending and our business, operating results and financial condition. If we fail to effectively manage our growth, our business, financial condition and operating results could be harmed. We purchase inventory in anticipation of sales, and if we are unable to manage our inventory effectively, our operating results could be adversely affected. Merchandise returns could harm our business. If we are unable to anticipate and respond to changing customer preferences and shifts in fashion and industry trends in a timely and cost-effective manner, our business, financial condition and operating results could be harmed. Our business depends on our ability to maintain a strong community of brands, engaged customers and influencers. We may not be able to maintain and enhance our existing brand community if we receive customer or influencer complaints, negative publicity or otherwise fail to live up to consumers' expectations, which could materially adversely affect our business, operating results and growth prospects. Use of social media and influencers may materially and adversely affect our reputation or subject us to regulatory and tax obligations, fines or other penalties. If we fail to acquire new customers, or fail to do so in a cost-effective manner, our financial results may be materially adversely impacted. If we fail to retain existing customers, or fail to maintain average order value levels, we may not be able to maintain our revenue base and margins, which would have a material adverse effect on our business and operating results. Our business, including our costs and supply chain, is subject to

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate," "predict" or any other similar words. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission, or the SEC. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following: economic conditions and their impact on consumer demand and our business, operating results and financial condition; our ability to effectively manage or sustain our growth and to effectively expand our operations; our ability to retain our existing customer

B USINESS

Item 1. B USINESS Our Business REVOLVE is the next-generation fashion retailer for Millennial and Generation Z consumers. As a trusted premium lifestyle brand and a go-to online source for discovery and inspiration, we deliver exceptional service and an engaging customer experience with a vast yet curated offering totaling over 100,000 apparel and footwear styles, as well as beauty, accessories and home products. Our dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers and over 1,200 emerging, established and owned brands. Through more than 20 years of continued investment in technology, data analytics and innovative marketing and merchandising strategies, we have built a powerful platform and brand that we believe is connecting with the next generation of consumers and is redefining fashion retail for the 21st century. Our co-chief executive officers founded REVOLVE in 2003 with the vision of leveraging digital channels and technology to transform the shopping experience, offering a scaled, one-stop destination for youthful, aspirational consumers. We believe that our model is more targeted and curated than premium department stores, and provides a greater selection and access than specialty retailers, which allows us to more effectively serve the next-generation consumer. To improve on the merchandise offerings of traditional retail, we have built a custom, proprietary technology platform to manage nearly all aspects of our business, with a particular focus on developing sophisticated and highly automated inventory management, pricing and trend-forecasting algorithms. Our proprietary technology leverages a comprehensive data net that encompasses millions of styles, attributes and customer interactions forming a strategic asset of hundreds of millions of data points. We have complemented these efforts with an organization built from the ground up to make decisions in a data-first, customer-ce