Revolve Group (RVLV) Stock Declined on Disappointing Quarterly Results

Polen Capital, an investment management company, released its “Polen Global SMID Company Growth Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. Interest rates and uncertainty about the direction of global economic growth continued to be negative factors while enthusiasm over generative AI enhanced companies exposed to the technology. The portfolio returned -0.15% gross and -0.26% net of fees in the second quarter compared to a 3.34% return on the MSCI ACWI SMID Capitalization Index. Negative stock selection led the portfolio to underperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Polen Global SMID Company Growth Strategy highlighted stocks like Revolve Group, Inc. (NYSE:RVLV) in the second quarter 2023 investor letter. Headquartered in Cerritos, California, Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer. On August 11, 2023, Revolve Group, Inc. (NYSE:RVLV) stock closed at $17.00 per share. One-month return of Revolve Group, Inc. (NYSE:RVLV) was -6.95%, and its shares lost 37.66% of their value over the last 52 weeks. Revolve Group, Inc. (NYSE:RVLV) has a market capitalization of $1.248 billion.

Polen Global SMID Company Growth Strategy made the following comment about Revolve Group, Inc. (NYSE:RVLV) in its second quarter 2023 investor letter:

“Revolve Group, Inc. (NYSE:RVLV), a next-generation online retailer, sold off after posting disappointing quarterly results, be it against tough comparisons. The company posted its second-biggest “reopening” quarter last year, with revenues up almost 60% year-on-year. This year the company saw revenues down 3% over the 12 months, with operating margins also down.

We believe the share price reflects significant risk in the business and is now trading at lower levels than pre-pandemic, despite being a much stronger business, having almost doubled revenues, and grown annualized earnings at approximately 20%.”

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Revolve Group, Inc. (NYSE:RVLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of first quarter which was 25 in the previous quarter.

We discussed Revolve Group, Inc. (NYSE:RVLV) in another article and shared the list of e commerce stocks billionaires are loading up on. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.