Michael Mente, Co-Chief Executive Officer of Revolve Group , Inc. (NYSE:RVLV), has recently sold a significant portion of his shares in the company, according to a filing with the Securities and Exchange Commission. Over the course of three days, Mente sold shares valued at approximately $9.38 million. The sales come amid a remarkable year for Revolve, with the stock delivering a 115.2% year-to-date return and reaching a market capitalization of $2.52 billion. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
On December 2, Mente sold 70,462 shares at an average price of $35.70 per share, followed by an additional 19,804 shares at $36.16 per share. The next day, he sold 65,138 shares at $35.22 and 11,764 shares at $36.24. Finally, on December 4, Mente sold 67,196 shares at $34.62 and 31,233 shares at $35.41. InvestingPro data shows the stock has demonstrated significant volatility, with a beta of 2.18, while maintaining strong momentum with a 94.65% return over the past six months.
These transactions were conducted under a Rule 10b5-1 trading plan adopted by MMMK Development, Inc., an entity in which Mente has shared voting and dispositive power. Following these sales, Mente does not hold any shares directly through MMMK Development, Inc. However, he still maintains a significant stake in Revolve Group through other holdings. For deeper insights into Revolve's valuation and performance metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Revolve Group has maintained its Sector Weight rating according to KeyBanc, following an increase in promotional activity post-Black Friday. KeyBanc noted that approximately 61% of items on Revolve's platform are discounted, a slight decrease from mid-October, but an increase from the previous year. Revolve's total SKU count on its website has grown about 9% year-to-date, reflecting the company's alignment of inventory growth with net sales growth for the fourth quarter.
In terms of financial performance, Revolve reported robust growth in Q3 2024, with net sales rising 10% year-over-year to reach $283 million. The company's net income also saw a significant increase, reaching $11 million, or $0.15 per diluted share, a notable rise from the $3 million reported in the same quarter of the previous year.
Revolve's management attributes this growth to improved logistics, decreased return rates, and strong performance in key categories. The company has also been investing in AI technology, international expansion, and marketing initiatives. Future plans include the opening of a Revolve Holiday Shop and a flagship store by mid-2025, despite inventory levels being slightly higher than desired.
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