Revolve Group Inc. shot straight up when it began trading at 10:40 a.m. Eastern, closing its first trading day up more than 90% at $34.65.
Revolve is an e-commerce retailer targeting Gen Z and millennial women between the ages of 19 and 44 years old with an average income of $61,000, according to Jesse Timmermans, the company’s chief financial officer. To reach this group, the company relies on data and a network of more than 2,500 social media influencers.
Timmermans told MarketWatch the company is placed to cope with the risk of import tariffs that many retailers, and consumers, are facing.
“We feel we’re in a better position given the premium product,” he said. “The female millennial customer comes to us for discovery not necessarily pricing.”
Revolve carries more than 45,000 items, and has 21 owned brands, including Grlfrnd and L’Academie. Items in these collections include the Marcel blazer for $248.
Revolve is “focused on [its] core consumer versus focused on everything,”Timmermans said, but it’s part of a growing retail landscape that is undergoing a shift towards multi-platform transactions that cut across both brick-and-mortar stores and online channels.
Amazon.com Inc. AMZN, +2.83% is the top apparel seller in the U.S., according to the latest “Amazon & The Retail Rainforest” report from Wells Fargo, accounting for 40% of retail growth in the first quarter.
“Notably, traditional retailers have decelerated significantly year-to-date in 2019 (our softlines group is once again coming negative), but e-commerce trends remain robust and Amazon continues to grow rapidly,” Wells Fargo wrote.
Not only is Amazon having an impact on shopping habits, it continues to push the pace of delivery, cutting the Prime delivery speed in half to one day from two. Walmart Inc. WMT, +0.90% and Target Corp. TGT, +1.34% are also pushing for greater delivery convenience with pickup options and even in-store delivery.
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