Why Has Revolve Group Struggled Since Its IPO?
Revolve Group (NYSE: RVLV) is an e-commerce platform that caters to millennial and generation Z consumers. The company curates luxury apparel, footwear, and accessory items, which it sells through a digital platform. It also owns several private brands. Revolve gained notoriety by marketing primarily through a network of 3,500 influencers who have large Instagram followings. Investors were also enthused by the company's use of data science to inform private label designs and inventory management based on user trends.
Revolve's initial public offering opened at $18 per share in June 2019 and closed at $34 on its first day of trading. By the end of the week, shares climbed to $42. Since then, holders have endured a relatively steady decline. Revolve shares dropped to $31 leading up to the company's first public quarterly earnings report.
Image Source: Revolve Group
Source Fool.com
