Michael Karanikolas, Co-Chief Executive Officer of Revolve Group , Inc. (NYSE:RVLV), has sold shares worth approximately $7.3 million, according to a recent SEC filing. The transactions occurred over several days, with sales prices ranging from $33.28 to $36.86 per share. The sales come amid a remarkable year for RVLV stock, which has delivered a 105% return year-to-date according to InvestingPro data.
On December 18, Karanikolas sold 40,907 shares at a weighted average price of $33.28, 14,682 shares at $34.24, 9,106 shares at $35.15, 12,012 shares at $36.16, and 128 shares at $36.86. The following day, he sold 62,281 shares at $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.
These sales were conducted under a pre-arranged trading plan adopted by MMMK Development, Inc., a company in which Karanikolas holds a significant interest. The transactions reduced his direct holdings to zero, although he retains indirect ownership through MMMK Development, Inc.
In other recent news, Revolve Group Inc. has demonstrated a solid performance with its Q3 2024 earnings revealing a 10% year-over-year increase in net sales, reaching $283 million. Furthermore, the company's net income saw a significant rise, reaching $11 million, up from the $3 million reported in the same quarter of the previous year. Adjusted EBITDA also grew by 85% to reach $18 million. This growth is attributed to improved logistics, decreased return rates, and strong performance in key categories such as Fashion Apparel and Dresses.
KeyBanc reiterated its Sector Weight rating for shares of Revolve Group, observing an increase in promotional activity following Black Friday. Approximately 61% of items on the core Revolve platform are discounted as of December 2024. Despite the deep markdowns, the total SKU count on Revolve's website has grown by approximately 9% year-to-date.
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. However, a slight decline in Q4 gross margin is projected due to markdowns and freight costs. Despite these challenges, the company's management remains optimistic about Revolve's trajectory.
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