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RVLV (Revolve Group) Gross Margin % : 51.16% (As of Sep. 2024)


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What is Revolve Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Revolve Group's Gross Profit for the three months ended in Sep. 2024 was $145 Mil. Revolve Group's Revenue for the three months ended in Sep. 2024 was $283 Mil. Therefore, Revolve Group's Gross Margin % for the quarter that ended in Sep. 2024 was 51.16%.


The historical rank and industry rank for Revolve Group's Gross Margin % or its related term are showing as below:

RVLV' s Gross Margin % Range Over the Past 10 Years
Min: 48.47   Med: 53.2   Max: 54.95
Current: 52.38


During the past 7 years, the highest Gross Margin % of Revolve Group was 54.95%. The lowest was 48.47%. And the median was 53.20%.

RVLV's Gross Margin % is ranked better than
75.98% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.85 vs RVLV: 52.38

Revolve Group had a gross margin of 51.16% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Revolve Group was -0.20% per year.


Revolve Group Gross Margin % Historical Data

The historical data trend for Revolve Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Revolve Group Gross Margin % Chart

Revolve Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 53.57 52.58 54.95 53.78 51.86

Revolve Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 51.72 52.00 52.30 54.03 51.16

Competitive Comparison of Revolve Group's Gross Margin %

For the Internet Retail subindustry, Revolve Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Revolve Group's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Revolve Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Revolve Group's Gross Margin % falls into.



Revolve Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Revolve Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=554.2 / 1068.719
=(Revenue - Cost of Goods Sold) / Revenue
=(1068.719 - 514.52) / 1068.719
=51.86 %

Revolve Group's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=144.9 / 283.146
=(Revenue - Cost of Goods Sold) / Revenue
=(283.146 - 138.279) / 283.146
=51.16 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Revolve Group  (NYSE:RVLV) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Revolve Group had a gross margin of 51.16% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Revolve Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Revolve Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Revolve Group Business Description

Traded in Other Exchanges
Address
12889 Moore Street, Cerritos, CA, USA, 90703
The Revolve Group is an emerging e-commerce retailer, selling women's dresses, handbags, shoes, beauty products, and incidentals across its marketplace properties, Revolve and FWRD. The platform is built to suit the "next-generation customer," emphasizing mobile commerce, influencer marketing, and occupying an aspirational but attainable luxury niche. With $1.1 billion in 2023 net sales, the firm sits just outside the top 30 apparel retailers (by sales) in the US, but has consistently generated robust top-line growth as the industry continues to favor digital channels. Revolve generates approximately 20% of sales from private-label offerings, while focusing on building an inventory of unique products from emerging fashion brands with less than $10 million in annual sales.
Executives
Michael Mente director, 10 percent owner, officer: See Remarks C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Michael Karanikolas director, 10 percent owner, officer: See Remarks C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Mmmk Development, Inc. 10 percent owner C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Jesse Timmermans officer: CHIEF FINANCIAL OFFICER C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Oana Ruxandra director C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Marc D Stolzman director C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
David Pujades officer: CHIEF OPERATING OFFICER 16800 EDWARDS ROAD, CERRITOS CA 90703
L.p. Tsg6 10 percent owner TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Hadley Mullin director C/O TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Melanie Cox director C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Jennifer Baxter Moser director C/O TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Tsg6 Management L.l.c. 10 percent owner C/O TSG CONSUMER PARTNERS, LLC, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111