CERRITOS, CA—Michael Karanikolas, Co-Chief Executive Officer of Revolve Group , Inc. (NYSE:RVLV), executed a series of stock transactions this week, selling shares valued at approximately $9.38 million. The sales were conducted over three days, from December 2 to December 4, 2024, through MMMK Development, Inc., a company in which Karanikolas holds a stake. The transactions come as Revolve's stock has shown remarkable strength, with a 115% gain year-to-date according to InvestingPro data.
Karanikolas sold a total of 198,804 shares of Revolve's Class A common stock. The sales were executed in multiple transactions at prices ranging from $34.62 to $36.24 per share. These transactions were part of a pre-established trading plan under Rule 10b5-1, which was adopted by MMMK Development, Inc. on August 15, 2024.
Following these transactions, Karanikolas, also a director and a ten-percent owner of the company, continues to maintain a significant holding in Revolve Group, Inc. The company, headquartered in Cerritos, California, operates in the retail sector, focusing on catalog and mail-order houses. With a market capitalization of $2.5 billion, Revolve maintains strong financial health, holding more cash than debt on its balance sheet. For detailed valuation analysis and 16 additional key insights, visit InvestingPro.
In other recent news, Revolve Group Inc. experienced robust growth in Q3 2024, with net sales surging by 10% year-over-year to reach $283 million. The company's net income also saw a considerable increase, hitting $11 million, a significant rise from the $3 million reported in the same quarter of the previous year. Adjusted EBITDA also escalated by 85% to reach $18 million.
KeyBanc maintained its Sector Weight rating for Revolve, observing an increase in promotional activity post-Black Friday. Approximately 61% of items on the Revolve platform were discounted as of December 2, 2024. Despite deep markdowns, the total SKU count on Revolve's website grew by approximately 9% year-to-date, aligning inventory growth with net sales growth for the fourth quarter.
Revolve's co-CEOs, Mike Karanikolas and Michael Mente, attributed this growth to improved logistics, decreased return rates, and strong performance in key categories such as Fashion Apparel and Dresses. The company has also been investing in AI technology, international expansion, and marketing initiatives.
Looking ahead, the company plans to open a Revolve Holiday Shop and a flagship store by mid-2025. Despite inventory levels being higher than desired, alignment with sales growth is expected by Q4. KeyBanc plans to continue monitoring promotional trends in the weeks leading up to the holiday season, crucial for assessing retailer sentiment regarding demand and inventory levels.
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