CERRITOS, Calif.—Michael Mente, Co-Chief Executive Officer of Revolve Group , Inc. (NYSE:RVLV), has sold a significant portion of his holdings in the company, according to a recent SEC filing. The transactions, executed over three days, amounted to $7.3 million. The sales come as RVLV trades near $34, having surged over 120% in the past six months, according to InvestingPro data.
On December 18, Mente sold 40,907 shares at a weighted average price of $33.28, followed by additional sales of 14,682 shares and 9,106 shares at average prices of $34.24 and $35.15, respectively. He continued the sell-off with 12,012 shares at $36.16 and 128 shares at $36.86, effectively liquidating his holdings from MMMK Development, Inc. on that day.
The following day, December 19, Mente sold 62,281 shares at an average price of $33.88 and 13,287 shares at $34.64. On December 20, he sold 52,782 shares at $34.14 and 9,659 shares at $34.56, completing the transactions.
These sales were conducted under a pre-established Rule 10b5-1 trading plan, allowing for scheduled sales of securities. The transactions reflect a strategic move by Mente, who retains a stake in the company through other holdings. For deeper insights into insider trading patterns and comprehensive analysis of RVLV's valuation metrics, access the full Pro Research Report available on InvestingPro.
In other recent news, Revolve Group Inc. demonstrated strong performance in Q3 2024, with net sales increasing 10% year-over-year to $283 million. The company's net income also saw a significant increase, reaching $11 million, or $0.15 per diluted share, a substantial rise from the $3 million reported in the same quarter of the previous year. Adjusted EBITDA also grew by 85% to $18 million.
KeyBanc reiterated its Sector Weight rating for Revolve shares, noting an increase in promotional activity following Black Friday. Approximately 61% of items on the core Revolve platform were discounted as of December 2, 2024. Despite these markdowns, the total SKU count on Revolve's website has grown by approximately 9% year-to-date.
In terms of future expectations, Revolve plans to open a Revolve Holiday Shop and a flagship store by mid-2025. The company is expected to align inventory levels with sales growth by Q4, despite current inventory levels being higher than desired. Despite a projected slight decline in Q4 gross margin due to markdowns and freight costs, Revolve's management remains optimistic about the company's trajectory.
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