Revolve Group Inc Class A
RVLV: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$83.40 | Kfwk | Rbjmhnsdh |
Near-Term Challenges Abound at Revolve, but Our Long-Term View Intact; Shares Undervalued
After digesting no-moat Revolve’s fourth-quarter results and factoring in a tepid 2023 outlook, we plan to cut our $36 fair value estimate by a mid-single-digit percentage. This adjustment reflects a combination of lower gross margin guidance (to 52%-53%, down from 54% in 2022), elevated return rates, and lower projected full-price sales mix in 2023.