Revolve Group Files Q2 2024 10-Q

TL;DR

Revolve Group's Q2 2024 10-Q is in. Check financials.

AI Summary

Revolve Group, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational aspects, including net sales revenue and retained earnings. The company's fiscal year ends on December 31st, and its principal business address is in Cerritos, California.

Why It Matters

This filing provides investors with an update on Revolve Group's financial health and operational performance for the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but specific risks are not detailed in the provided snippet.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2023-12-31 — Prior Year End Date (Provides a comparison point for retained earnings.)
• 2024-01-01 to 2024-06-30 — Year-to-Date Period (Covers the period for sales revenue and specific product categories.)

Key Players & Entities

• Revolve Group, Inc. (company) — Filer of the 10-Q
• 2024-06-30 (date) — End of the reporting period
• Cerritos, CA (location) — Company's business address
• Bank of America (company) — Mentioned in relation to a credit facility

FAQ

Key Financial Figures

• $0.001 — ered: Class A Common Stock, par value $0.001 per share RVLV New York Stock Excha

Filing Documents

• rvlv-20240630.htm (10-Q) — 2356KB
• rvlv-ex31_1.htm (EX-31.1) — 14KB
• rvlv-ex31_2.htm (EX-31.2) — 14KB
• rvlv-ex32_1.htm (EX-32.1) — 11KB
• 0000950170-24-091894.txt ( ) — 8890KB
• rvlv-20240630.xsd (EX-101.SCH) — 950KB
• rvlv-20240630_htm.xml (XML) — 1822KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 7 Condensed Consolidated Balance Sheets 7 Condensed Consolidated Statements of Income 8 Condensed Consolidated Statements of Comprehensive Income 9 Condensed Consolidated Statements of Cash Flows 10 Notes to the Condensed Consolidated Financial Statements 11

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 41

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 42

Risk Factors

Item 1A. Risk Factors 42

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 76

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 76

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 76

Other Information

Item 5. Other Information 77

Exhibits

Item 6. Exhibits 78

Signatures

Signatures 79 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 risk

- FINANCI AL INFORMATION

PART I - FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements REVOLVE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDA TED BALANCE SHEETS (Unaudited) ( In thousands, except share and per share data) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 244,737 $ 245,449 Accounts receivable, net 17,549 12,405 Inventory 234,324 203,587 Income taxes receivable 629 1,625 Prepaid expenses and other current assets 74,985 65,523 Total current assets 572,224 528,589 Property and equipment (net of accumulated depreciation of $ 20,430 and $ 17,994 as of June 30, 2024 and December 31, 2023, respectively) 8,056 7,763 Right-of-use lease assets 40,253 36,440 Intangible assets, net 1,946 1,875 Goodwill 2,042 2,042 Other assets 3,277 2,172 Deferred income taxes 30,005 30,005 Total assets $ 657,803 $ 608,886 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 62,813 $ 47,821 Income taxes payable 1,269 — Accrued expenses 40,384 40,714 Returns reserve 72,058 63,780 Current lease liabilities 8,095 6,863 Other current liabilities 30,988 30,442 Total current liabilities 215,607 189,620 Non-current lease liabilities 36,441 34,126 Total liabilities 252,048 223,746 Stockholders' equity: Class A common stock, $ 0.001 par value; 1,000,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 38,132,796 and 38,693,589 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 38 39 Class B common stock, $ 0.001 par value; 125,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 32,597,119 and 32,597,119 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 33 33 Additional paid-in capital 121,334 116,713 Retained earnings 284,350 268,355 Total stockholders' equity 405,755 385,140 Tota