Revolve CEO/CFO Meeting: Grow & Invest To Capture The Next Waves Of Cool

研报英文原文证据摘录

Revolve CEO/CFO Meeting: Grow & Invest To Capture The Next Waves Of Cool

n 1Q and is assumed to persist near-

term, creating some pressure on gross margin though management views this as cyclical.

TD Cowen's Takeaways From Our Meeting On Key Growth Initiatives

Near-term (2026 drivers):

■Grow Good / Cardi B JV: Hype-Driven Launch; Revenue Skews 2H with Scarcity Strategy.

The Grow Good launch exceeded expectations, with product selling out in ~45 minutes (vs.

~4 hours expected) with management highlighting there was significant unmet demand. No

meaningful revenue was recognized in 1Q (pre-orders only), with revenue beginning in 2Q

and ramping through 2H as inventory scales. Management emphasized the initial strategy

is intentionally scarcity-driven to generate buzz and consumer urgency upfront, creating a

strong brand foundation before broader monetization across subsequent drops. Over time,

they see opportunity to expand both in beauty (as a standalone brand) and into apparel,

leveraging Cardi B’s audience to drive a multi-category platform.

■Category Strength Broad-Based; Apparel, Beauty, and New Categories Outpacing.

Category trends in 1Q were broadly positive, with dresses delivering strong growth but

apparel and newer categories (beauty, men’s, home) outpacing the total business.

Management highlighted double-digit full-price growth, with markdown sales growing

faster, still indicating broad demand strength, while mix shift toward newer categories

remains a key contributor to acceleration. Importantly, category diversification continues to

reduce reliance on dresses while expanding total addressable market.

Intermediate (12-24 month ramp drivers):

■Revolve LA Launch Driving Step-Up in Brand Engagement; Multi-Year Category Expansion

Opportunity.