Revolve Group Gears Up for IPO

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Revolve Group has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were mentioned in the filing, although the offering is valued up to $100 million. The company intends to list its shares on the New York Stock Exchange under the symbol RVLV.

The underwriters for the offering are Morgan Stanley, Credit Suisse, Merrill Lynch, Barclays, Jefferies, Cowen, Guggenheim, Raymond James and William Blair.

This company is a next-generation fashion retailer for millennial consumers. As a trusted, premium lifestyle brand and a go-to online source for discovery and inspiration, it delivers an engaging customer experience from a vast yet curated offering totaling over 45,000 apparel, footwear, accessories and beauty styles. Its dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers and more than 500 emerging, established and owned brands.

Through 15 years of continued investment in technology, data analytics and innovative marketing and merchandising strategies, it has built a powerful platform and brand that management believes is connecting with the next generation of consumers and is redefining fashion retail for the 21st century.

The company was founded in 2003, with the vision of leveraging digital channels and technology to transform the shopping experience. Management believed that traditional retail was either too massive or too limited, struggled to consistently provide on-trend merchandise and was failing to connect with younger consumers. Revolve was created to offer a scaled, one-stop destination for youthful, aspirational consumers. It’s also believed that this model allows it to more effectively serve consumers.

Revolve detailed its finances in the filing as follows:

In 2017, we reported $399.6 million in net sales, $5.0 million in net income and $28.4 million in Adjusted EBITDA, representing growth of 28.0%, 127.5% and 198.6%, respectively from 2016. For the nine months ended September 30, 2018, we reported $371.0 million in net sales, $22.9 million in net income and $34.6 million in Adjusted EBITDA, representing growth of 24.7%, 182.9% and 78.6%, respectively, from the nine months ended September 30, 2017.

The company intends to use the net proceeds from this offering for working capital and general corporate purposes.