Financial Education on $RVLV (Nov 4, 2026)

The second of these three stocks is this one, RVLV Revolve. This stock is currently just below $20, at $19.98. We made about $20,000 in profit on this stock in the public account, right?

And this is an e-commerce company. They sell clothes. Hmm, the average order amount is usually around $200 or $300. Right now, its earnings report has been published within the last 24 hours.

And, when it comes to this, the net sales growth was great, 20%. That's great, but they had cost issues during the quarter. Therefore, the cost of sales increased by 22%. Therefore, gross profit increased by 19% less than net sales.

Fulfillment costs increased by 24% and selling and distribution costs increased by 23%. These are much higher than revenue and gross profit as a percentage. So, this is not what we want to see, right?

Marketing costs were as high as 26% and GNA costs were as high as 20%. Isn't that right? Total operating expenses increased by 23%. As a result, operating income actually decreased by 9% year-on-year.

Um, other income here, it's kind of a one-time thing that hurt them here. So, keep in mind that or, you know, it helped them a lot less here, meaning it was $1.9 million versus $7.3 million as a benefit.

Okay, so pre-tax income is down 25%, but without this huge aid it wouldn't have been that much, it would have been much lower last year. Uh, net income fell 27% and EPS for Revolve fell 31%.

So I'm not looking at short-term cost issues. I believe they will get those costs under control and they will continue to grow revenue at a rapid rate. And then, you know, I think I'll evaluate Revolve's income statement next year.

And um, we will evaluate, you know, A and B grade income statements, in my personal opinion. And by the way, I also have an amazing balance sheet for that company.