Revolve's stock has dropped 13.3% over the past six months to $25.36, underperforming the S&P 500's 8.6% gain. Analysts point to soft demand, with active customers growing just 5.8% annually to 2.93 million, and poor marketing efficiency, as the company spent 59.3% of gross profit on sales and marketing over the last year. Earnings per share grew at a 7.5% compound annual rate over three years, outpacing 5% revenue growth, but the stock now trades at 15.2 times forward EV-to-EBITDA. The report recommends avoiding Revolve in favor of other opportunities, including what it calls the most entrenched endpoint security platform on the market.
Revolve Group LLCAnalysts flag weak demand with active customer growth slowing to 5.8% annually.