Revolve Group, Inc. — Call Transcript 2026

Hello. Great. My name is Dylan Carden. We have Mike Karanikolas here, the CEO of Revolve. He's going to do a presentation for everyone. I'm required to inform you that the disclosures are available on our website. That's all you need from me. Great. Thank you. Excited to get started. I'm Mike Karanikolas, Founder and CEO of Revolve. Revolve is a leading online fashion retailer. We're founder led. I've been at this 20 plus years. We're profitable every single year but one, 2008. We're a fast growing company, growing faster than the market in the past several years and also the past 10 years if you look at it. We'll have some slides on that later. Importantly, we're a company that is built on data and technology. That's actually our background. Our background was not fashion. It was engineering and business analysis, my co-founder and I. We're built on community and culture. We have a very unique brand marketing strategy, and we're built for the age of social media. Importantly, we're built for the age of AI, and we have a lot of exciting things going on in AI. It's transforming retail, and I think there's no company better positioned in the fashion space than us, given our background and given everything we've accomplished with data and technology over the past 20 years. You can see some high-level numbers of us. We're a $1 billion-plus company. We're very small in the overall marketplace. It's a huge market, $700 billion-plus. We have a huge opportunity in front of us. We're rapidly growing, and we've got a ton of exciting initiatives to continue to drive the growth going forward. Just a little bit about us in terms of what differentiates Revolve, why we've been so successful. By all accounts, if you looked at us when we started, we probably had no business being successful, no reason to be successful. My business partner and I, we founded this out of a house in our early 20s, going up against behemoths with a lot of money. We were able to succeed and become really the premier brand in the premium fashion space due to a number of things that we've historically done better than others. The thing I'll start with that we've become best known for today is our brand, where in this premium fashion space, I'd argue no one has a stronger brand than us. Certainly, no one does it in the way that we do. The first slide that we were on, I'll actually back up a slide here. Picture there of Revolve Festival. I'd argue there's no other event out there among brands like it, where it's become this iconic cultural moment within the Coachella Valley Music Festival. It's known worldwide and attracts thousands of influencers, gets billions of impressions on social media, and is really an iconic cultural moment. Of course, that's just part of what we do. That's the highlight of our spring marketing, but we're known for influencer marketing. We pioneered it, and we're the leaders in social media marketing. If you look at compared to our competitors in the premium space, particularly multi-brand, they've never really mastered social media and brand the way that we have. A company like Nordstrom, who's among the legacy players that we've been taking millions, hundreds of millions of dollars of share from, and they're still a $10 billion-plus company. They've never quite mastered social media and brand in this new age, and it's one of the key reasons we've been able to take share from companies like them. The next one, proprietary data and technology. I don't think there's a company like us. Certainly, others have great technology out there. In most cases, we can't compete directly with a company like Google. As I'll show you later on, we actually replaced the search technology of a company. I'll call it such as Google. I don't want to name the country, essentially a company, a leader in search with our own AI search technology that significantly outperformed them over a double-digit increase in performance versus the incumbent. I don't think there's anyone out there that has the level of tech DNA that we do in the fashion space with the level of investment that we have, where we're able to invest but still run a profitable company where we've been profitable again every single year but one, 2008. That was the Great Recession. We'll get into some examples later, but we'll talk about the ways in which this technology makes us better and gives us a better experience for customers, and again, has been creating this destination, this experience that drives customers towards us and away from these legacy players. Moving on. We have multiple large growth vectors I talked about in the opening slide. That we're still a very small player in the overall market, $700 billion+ apparel market. If you look at some of our most direct competitors, like some of these legacy department stores, it's tens of billions of dollars of share at stake in terms of that they've been ceding to us over the years, and we think that process is only going to accelerate as companies like ours, which are built for the next generation of consumers, continue to take share. Moving on, last one I touched on, strong profitability, strong, consistent growth. We've grown in nearly every single year. There were a couple down years. They were all macro related. Being founder-led with a long-term mindset, we've always been willing in a period of macro trouble or in a period where the business needs a reset to take down revenue a bit. We've grown nearly every single year. We've got very consistent growth and cash flows. We'll talk about it. Since IPO, we've generated hundreds of millions of dollars of cash flow. I think very unique for digitally native retailers and for tech-focused companies like ours. All right. Telling you a little bit about our company and the brands that we carry. We're Revolve Group, Inc. We're primarily known for Revolve. That's our main business. It's about 83% of the overall business. Revolve operates in the contemporary space. It's premium product, close to a $300 AOV. We also have a smaller portion of our business. FWRD is our luxury business. It's maybe more comparable to a Saks or Neiman Marcus in terms of the price points that it carries. A much higher AOV, about double that of Revolve, a little bit more than double that of Revolve. It's also doing quite well. As we'll talk about with the disruption in the luxury space, there's a lot of opportunity for FWRD. These two pieces fit together really nicely in a complementary way. Revolve customers, as they gain in spending power, we can graduate them up to FWRD. These two sites very much complement each other and are built on the same technology backbone and on the same brand marketing engine. All right. Looking at the market opportunity, already touched on it. Huge market. It's large, it's growing. There's a number of growth vectors that have been helping fuel our momentum. Certainly, e-commerce growth over the years, and of course, more recently, e-commerce growth has tapered compared to physical. E-commerce is still outperforming physical. It's not quite as strong of a growth driver it was before, but it's still a nice tailwind. Importantly for us, though, and we'll talk about it, physical is something completely untapped for us, or nearly completely untapped. We have two physical stores now, and that's more than half of the market that's completely untapped for us that can really supercharge our current growth algorithm, which is already going at a nice rapid pace. Moving on, looking at some key metrics driving performance. I think the most interesting thing on this slide is the percentage of net sales at full price, 80% plus, which is very much an outlier in the fashion industry to achieve those levels of full price. That speaks to our data and technology and our process and our capabilities and how we're able to bring this better experience to customers. If you look at the legacy department stores, they're in the 60% zone, and we've consistently been able to achieve numbers close to 80, and in the past five years, 80% plus, which is also something important. As we improve our technology and our processes, we have been driving long-term improvements in how we do business. I think this very much speaks to both the profitability profile of the company, but also how we're able to create a better experience, a better destination for consumers. We know how to present product to consumers. We know how to bring up the right product to consumers in the right places with a lot of our personalization algorithms and recommendation algorithms, related products, et cetera, which are nearly all homegrown. I'll say with regards to the homegrown tech, too, we are agnostic. We're not religious about it. We don't do homegrown stuff just to do it. Sometimes we'll use a third party, but we always put our best up against what the best is out there. I mentioned on the search, for many years, we actually used the search technology from the leading player in search, and we'll always do that. The fact that so much of what we do is homegrown speaks to our very unique capabilities. I think the reason we're able to outperform these companies that have larger investment is because certainly, we're great at tech, but we know fashion in a way that these tech-focused companies do not know fashion. We know how to craft technology to the fashion space. Then, of course, we know our customer and our brand. These abilities to kind of customize and tailor technology to what we do, which is something that the big companies can't do, is why we're able to out-compete them and produce better technology, which ultimately produces a better experience, better financial metrics. The other thing I want to talk about is customer loyalty, which comes from a combination of things. The great on-site experience that we provide customers, which again, is powered by technology, it's powered by brand, it's powered by data. It's also powered by a mentality, customer-centric, customer-first mentality. Really going back to this idea of that we had no business succeeding 20 years ago. I always liked the slogan from, I think it was Avis many years ago of, We're number two, so we try harder. That was always the mindset that we had. We're the underdog. We're going to try harder. We're going to be the best at every single thing, starting with customer experience, so very customer-centric. Free shipping, free returns, we were the innovators of that, along with Zappos. I would say we both independently invented that concept of the home as the dressing room. For us back in 2003, it was a core founding principle. Just beyond that, just having incredible customer experience across the board. You see it in a lot of the metrics that we mentioned, really high customer satisfaction ratios. We also have, and I think it's on the next slide, we'll talk about our customer retention, which is really high. We still to this day include pre-printed return stickers and labels in every order that we ship, which is something that the Zappos' of the world and the Zalandos have actually gone away from as they've looked to get kind of last bits of profitability out of their customer. It's not to say that we'll never do it, but we will probably never do it. I'm never religious about anything, but I always have a long-term mindset, and I know that customers come to us for that experience. They know we're going to provide a better experience than anyone else, and if I'm looking for margin, I'm generally going to get it elsewhere. I talked about the customer loyalty. We have really nice revenue retention rates, 89% revenue retention year-over-year in the most recent year. Very much in line with historicals. Now, during the COVID and post-COVID period, if you look at historical numbers, you see that number going around up and down, just kind of due to the macro going on. The 89%, very strong number, again, very much in line with historicals. You can see we have a really nice continued growth in active customers over time. When you treat your customers well, I was talking before the meeting with some folks about some other companies they were looking at that had some financial troubles recently. I pointed out it's because of their model. Their model locks people in. They're not treating customers well. You can show growth for a while. It's hard to show consistent growth for 20-plus years if you're not treating your customers well, if you're not providing a best-in-class experience. That's always our mentality. Again, you see it in those revenue retention rates, and that's why we're built for long-term success and why we're able to continue to grow year after year. 20-plus years of data and technology, we talked about it. My background was in engineering before founding Revolve. All of our core systems are homegrown. I'm proud to say many of the core systems that we built 20-plus years ago are still powering a billion-plus company today. They were built right from the start to scale. They were built to be flexible. They were built to allow us to continue to innovate. Again, it shows up in the numbers, and we're constantly improving our algorithms and tech. Last year, one of our big wins was we made a significant improvement to our markdown process, which the original markdown process was automated. It was actually written by me, probably 18+ years ago. I actually challenged the team around a year ago, I said, Hey, look, we have these things. It was written by me. I'm proud of that. I'm glad we're still using it, but I'll bet we can do better, right? We have a big team now, and an incredible team of really smart people. Let's take a look at that. Let's see what we can do better. Also, technology has changed, right? AI technology, a lot of advances in technology. Let's see what we can do. The team dug in, and they were able to create some new, better automated processes leveraging the latest technology. The results were we had a huge margin gain last year versus expectation, even with the impact of the tariffs. We showed strong margin gains last year. It's just an example of how we're continuing to innovate. The algorithms that power our sites, the recommendation algorithms, the personalization algorithms, all built on homegrown technology. It really covers all facets of our business. It allows us to be more efficient. We have some really cool technologies that allow us to automatically process invoices. In the age of AI, it's disrupting, I'd say, life in general, in a good way. Business, life, maybe it hasn't quite disrupted yet. Revolve was built for this moment because we have such a strong foundation in data and technology. I'll talk about a few really cool examples that we've demonstrated publicly before on the next slide. Also, one really cool anecdote is my Co-Founder and Co-Chief Executive Officer and I constantly have conversations with the team and say, maybe it was a few months ago, we were talking with one of the senior engineers who's very heavy in AI work for us. We're talking about some recent work he'd done, and we're talking about, Okay, what's the next low-hanging fruit we can go after? Because, as the CEO, that's typically how you think. What's the low-hanging fruit? What's the next easy win? The engineer came back, and he said, I don't want low-hanging fruit. Give me high-hanging fruit. Give me something really difficult. Which is great, and that's the mentality of the people that we have. The project we gave this person was actually with regard to our retail stores, which is still a new area for us. We wanted better tracking of movements of customers in the store, what they were doing. For example, how many were going into the dressing rooms, how many were going to different areas. We challenged them to use the latest in AI technology to be able to track what people were doing out in the store, to be able to count how many people are going in and out of the dressing room, how many people are going in and out of certain areas. To help us build those foundational data pieces for physical retail that we've always had on the online side. Within, I'd say, around a week and a half, this guy came back, and he had an incredible prototype. I swear it looked like something out of The Terminator movie. You can see the videos, and it's auto-targeting, and counting all the people. I think it just goes to show how in this age of AI, a company like ours and a team like ours is really able to move fast and innovate and use the latest in technology to disrupt and do things in a better way than these legacy players out there. These are the things that have made us successful online, are going to make us successful on the physical side. A couple of cool examples here. I don't know if my eyesight is getting old in my age, but I've got a bit of trouble seeing some of these slides. First one, AI-powered search. We talked about it. Really cool double-digit gains versus the incumbent, the worldwide leader in search. Again, just goes to show the power of what our teams can do. On the slide, there's an example of an AI search, the type of search that AI does better than traditional search. Traditional search, very good with specific keywords, or it has some tricks it can layer over that where it can know certain words are similar to another. Where AI search excels at is things that might not necessarily show up in labels. Things that might be more vibes or feelings or aesthetics. Where if you don't have incredible tagging across every product, it's not going to show up. We've got an example here, dresses in Ibiza, I believe is the example. The AI-powered search is able to immediately know what that is. It doesn't matter that none of the dresses are tagged as Ibiza. The AI knows what the vibe of Ibiza is, and it knows what the vibe of our dresses are, and it's able to put together a result, and it's pretty darn incredible. Next one, AI-enabled virtual try-on. This is actually through a third-party partner of ours, and we do have a mutually beneficial financial relationship with them, and essentially an interest in this company. It goes to show how we will use the best in third-party technology also. We've seen really nice gains with this tool. Allows customers to, on a virtual model, create outputs using AI, pretty much in real time. We have not really spread this across the whole website in a big way yet. We're starting to expand it. It's supported on a large number of products, not all of them yet. We've seen really strong gains here, and just another example of how AI really improves the customer experience. The last one here, generative AI Q&A. You've seen it on other sites such as Amazon. This is another thing that we're rolling out, and of course, Amazon has great tech as well. We've rolled this out on our dresses category, on the main website, and we've seen nice lift with that. That's something that we're rolling out across the board. All right, diving into some key financial metrics. A long-term track record of healthy top-line growth. Most recent quarter, things are accelerating, 16% growth year-over-year in Q1. We've been at this 20-plus years, but we think we're getting better than ever, and we're getting stronger than ever. Certainly, in the age of AI and technology, we think we're built to accelerate and take advantage of this current opportunity. Again, you can see nice growth and continued growth in active customers over time. Next one, consistent profitability, profitable every year except one. This shows the profitability and Adjusted EBITDA for the past couple of years. Nice consistent growth there. Nice expansion in margins as we've grown revenue at the same time, with $90-plus million in Adjusted EBITDA in the most recent year. Again, leading to market share gains over many years. 16% CAGR over the past approximately 10 years, outpacing the overall e-com market at 13%. We believe that's because we're able to take share from these players and that we've got a better experience for customers. Finally, here, on the financial target side. Progress Towards Medium-Term Financial Targets are, we'll call it medium-term financial targets. It is a big focus of ours to increase our margins over time. As a founder, I'm always going to put experience first, customers first. As a business person, we have to run a profitable business. We've always done so. The most recent trailing EBITDA margins in the past 12 months, close to 8%. That's not where we want to be. We want to be at 10% plus in the midterm, and so we're driving towards there. We'll do the things to kind of tweak the levers we need to do to get there. There's a couple of levers that we'll talk about. Then longer term, I want to be at 12% plus. I think that's a nice, healthy place for a business like ours to be, where we're balancing profitability and customer experience and growth. Cash flow generation. Since IPO, we've generated hundreds of millions of dollars of cash. Something I'm very proud of is a founder-led bootstrap company for the first nine years, we've always been able to generate cash. We've always run our business in a very disciplined way, that's continued post-IPO. I think it's very much differentiated from other digitally native companies. We combine the best of probably the old school physical retail merchandising mindset and kind of profitability-based mindset with the newest and latest and greatest in tech and the mindset to drive and innovate there. Talking about capital allocation. As a founder-led business, we have a very long-term mindset. First and foremost, we want to invest back into the business. Of course, since we try to run an efficient business, we often have excess cash, and we've been building up excess cash. It's often a question I get from investors, what do we plan on doing with all that excess cash? As the largest shareholders in the business, my founder and I still own 40% plus of the business, we are 100% in the investors' seat, where we want what investors want. In some form or another, we want that cash returned back to investors. Most importantly, we want to make the best financial decision with it. We're very long-term focused, opportunistic-minded. Number two, after investing in the business, we have is thoughtful M&A. For us, this is always a tricky balance, right? Where we want to be opportunistic. I like having that cash on the balance sheet. You never know when the right opportunity is going to be there, some kind of disruption, and I like having that cash. At the same time, we'll thoughtfully buy back shares, start to return money to investors as well. In the most recent quarter, we've actually bought back $8 million in shares already this quarter. All right, looking ahead, I think what's incredible, I talked a lot about the core business, why it's so powerful, why we've been so successful. We have really lane-opening, game-changing initiatives in the works on the horizon that can supercharge our growth rates, which are really already quite nice, right? For the space and our size. The first one I want to talk about here quickly, Revolve Los Angeles, our namesake label. We launched it earlier this year. We have never done a Revolve-based label. For us, that's a very big step. We do have own brands. Close to 20% of our business is own brands, it's always been other labels. It's never been Revolve. I think this really opens things up for us from a marketing playbook, from a brand playbook, from a margin playbook, having our own label in ways that having these essentially what appear to be third-party labels owned by us and our own brands previously. We're still in the early stages here. We're very long-term minded. I think for some in the investment community, the launch of Revolve Los Angeles might have been confusing of why are we launching so high-end. We launched an incredible premium product. We used some of the best designers in the world for it. Really show-stopping pieces, $2,000-plus, incredible pieces that would look appropriate walking down the finest luxury shows in the world. It's part of a long-term positioning in play. We want to open up with the best of the best. Then mid to longer term, we're going to do some things that are more commercial and where we think we can really build margin and drive gains. We have some really cool things in the works with sort of sub-line we're calling Revolve Sport. We have some really cool things in the works with various logoed gear. These basics and logoed gear and kind of distinctive styles that are very accessible, this is where this can be huge profit drivers for us down the road. We're building towards it. Next, joint venture with Cardi B. Cardi B has actually been a phenomenal business partner. Obviously, as her public persona, she works hard. She's very business-focused, and she's been a great partner, doing everything that we've advised her in terms of what needs to be done to make a brand successful. We launched a brand, Grow Good, with her, a haircare brand for the textured hair market. We've gotten positive feedback from people without textured hair as well. We'll see where that brand goes. Incredible launch. First set of products sold out, I believe, in less than an hour. We increased the orders, and then the next set also sold out in less than an hour. We have some big orders in the works there. We'll see where that brand goes. A lot of opportunity from a revenue standpoint, from a margin standpoint. Obviously, beauty has really nice margins, and a very concise product set. It's only 6 SKUs. I think some really attractive things about that business. Then lastly, I touched on it, physical retail. Revolve has really excelled online. I think we do it better than anyone else. Physical retail is the next mountain for us to conquer. We're still working up our muscles there. We've got two stores. We're learning how to be the best we can in those stores. Our intent is to conquer physical retail as well. It's still called around 60% of the apparel market, that's huge untapped space for us. Importantly, a large portion of the customers in our physical retail store, even in the one we have in Los Angeles, are new customers. It can also supercharge the e-com business as we roll out these physical retail stores. We're still less than 3% penetrated in the overall market, which again speaks to our strong growth trajectory and profile. All right. The next slide, talking about, again, long-term mindset, our stock ownership. I touched on it. My business partner and I own 40% plus of the stock still. We think as you do, we are the biggest investors in the stock. Also, fun fact, I guess, CEO compensation benchmarks. We're paid quite well. I certainly can't complain about $400,000 plus a year. We're underpaid versus the overall CEO market. That's fine with us. We make our money off of the business and the stock growing, not off of our CEO compensation. The $400,000 is enough to keep my family happy, and then, in terms of long-term wealth creation, we're driving it through stock growth. All right. Looking at most recent results, talked about it, accelerating growth, 16%+ growth year-over-year. Also accelerating margins. We've gotten a lot of, I think, questions in the market about why are we not driving the margins higher, faster. The reality is we have. It's been a bit perplexing because we have, particularly over the past couple of years. You look, we have substantial increase in EBITDA margins, but we're never going to drive things in a straight line, very controlled way. We're long-term mindset. We're going to invest where we think there's opportunities. Driving not just growth in Q1, but also strong increase in earnings, 25%+ year-over-year in excess of the revenue growth, and incredible free cash flow in Q1, $45 million. FWRD segment, talked about it. Smaller portion of the business, but exciting opportunity there. There's billions of dollars, tens of billions of dollars of share available there. Those players are being disrupted and they're going away. FWRD is gaining from the disruption in the space. Really strong growth in FWRD in Q1, 17%+. Even stronger growth in gross profit, 36%+. Key growth drivers. We talked about the transformational drivers. Just the core, we still have incredible opportunity. Very small. Only around 3% penetrated in our target market. We're a $ billion+, we think we can be a $10 billion+ and more company. We're very early on in our journey. Certainly, there's $ tens of billions of share available from these legacy players. This chart here shows you us compared to some larger players like a Nordstrom, a Macy's, Ulta, Zalando. Obviously Nordstrom, most comparable in terms of offering and price point, but you can see huge share opportunity available. We have a big opportunity to expand our product offering and wallet share. Historically, there were certain categories that we focused more in. We've had fairly broad coverage of a number of categories. Where we were strongest in was things like going-out dresses, categories where customers are living their best life. We want to get a lot more into the day-to-day of customers' lives. We know there's big opportunity areas like activewear, workwear, everyday wear basics that Revolve plays in. We have good stuff, but we're not necessarily customers' number one destination for that, and that's something that we're actively working on building and expanding. International. We've got a huge international opportunity. International has been outgrowing the U.S. for a number of quarters now, I think. I don't have the exact stat off the top of my head. Really strong growth, 20% plus growth. Very under-penetrated internationally. It's currently around 20% of the business. Long-term, it could be 40% plus, even larger. Outperforming, we have a number of initiatives there, exciting things. China, very under-tapped market, really focused there. Expand own brand, we talked about it, particularly with the Revolve label, new collaborations. Physical retail. Incredible opportunity. I'm out of time. Thank you so much. Great, guys. Jenny A. Thank you.

Speaker 1: Hello. Great. My name is Dylan Carden. We have Mike Karanikolas here, the CEO of Revolve. He's going to do a presentation for everyone. I'm required to inform you that the disclosures are available on our website. That's all you need from me. Hello. hello Great. great My name is Dylan Carden. my name is dylan carden We have Mike Karanikolas here, the CEO of Revolve. we have mike karanikolas here the ceo of revolve He's going to do a presentation for everyone. he's going to do a presentation for everyone I'm required to inform you that the disclosures are available on our website. i'm required to inform you that the disclosures are available on our website That's all you need from me. that's all you need from me

Speaker 2: Great. Thank you. Excited to get started. I'm Mike Karanikolas, Founder and CEO of Revolve. Revolve is a leading online fashion retailer. We're founder led. I've been at this 20 plus years. We're profitable every single year but one, 2008. We're a fast growing company, growing faster than the market in the past several years and also the past 10 years if you look at it. We'll have some slides on that later. Importantly, we're a company that is built on data and technology. That's actually our background. Our background was not fashion. It was engineering and business analysis, my co-founder and I. We're built on community and culture. We have a very unique brand marketing strategy, and we're built for the age of social media. Great. great Thank you. thank you Excited to get started. excited to get started I'm Mike Karanikolas, Founder and CEO of Revolve. i'm mike karanikolas founder and ceo of revolve Revolve is a leading online fashion retailer. revolve is a leading online fashion retailer We're founder led. we're founder led I've been at this 20 plus years. i've been at this 20 plus years We're profitable every single year but one, 2008. we're profitable every single year but one 2008 We're a fast growing company, growing faster than the market in the past several years and also the past 10 years if you look at it. we're a fast growing company growing faster than the market in the past several years and also the past 10 years if you look at it We'll have some slides on that later. we'll have some slides on that later Importantly, we're a company that is built on data and technology. importantly we're a company that is built on data and technology That's actually our background. that's actually our background Our background was not fashion. our background was not fashion It was engineering and business analysis, my co-founder and I. it was engineering and business analysis my co-founder and i We're built on community and culture. we're built on community and culture We have a very unique brand marketing strategy, and we're built for the age of social media. we have a very unique brand marketing strategy and we're built for the age of social media Importantly, we're built for the age of AI, and we have a lot of exciting things going on in AI. It's transforming retail, and I think there's no company better positioned in the fashion space than us, given our background and given everything we've accomplished with data and technology over the past 20 years. You can see some high-level numbers of us. We're a $1 billion-plus company. We're very small in the overall marketplace. It's a huge market, $700 billion-plus. We have a huge opportunity in front of us. We're rapidly growing, and we've got a ton of exciting initiatives to continue to drive the growth going forward. Just a little bit about us in terms of what differentiates Revolve, why we've been so successful. Importantly, we're built for the age of AI, and we have a lot of exciting things going on in AI. importantly we're built for the age of ai and we have a lot of exciting things going on in ai It's transforming retail, and I think there's no company better positioned in the fashion space than us, given our background and given everything we've accomplished with data and technology over the past 20 years. it's transforming retail and i think there's no company better positioned in the fashion space than us given our background and given everything we've accomplished with data and technology over the past 20 years You can see some high-level numbers of us. you can see some high-level numbers of us We're a $1 billion-plus company. we're a $1 billion-plus company We're very small in the overall marketplace. we're very small in the overall marketplace It's a huge market, $700 billion-plus. it's a huge market $700 billion-plus We have a huge opportunity in front of us. we have a huge opportunity in front of us We're rapidly growing, and we've got a ton of exciting initiatives to continue to drive the growth going forward. we're rapidly growing and we've got a ton of exciting initiatives to continue to drive the growth going forward Just a little bit about us in terms of what differentiates Revolve, why we've been so successful. just a little bit about us in terms of what differentiates revolve why we've been so successful By all accounts, if you looked at us when we started, we probably had no business being successful, no reason to be successful. My business partner and I, we founded this out of a house in our early 20s, going up against behemoths with a lot of money. We were able to succeed and become really the premier brand in the premium fashion space due to a number of things that we've historically done better than others. The thing I'll start with that we've become best known for today is our brand, where in this premium fashion space, I'd argue no one has a stronger brand than us. Certainly, no one does it in the way that we do. The first slide that we were on, I'll actually back up a slide here. Picture there of Revolve Festival. By all accounts, if you looked at us when we started, we probably had no business being successful, no reason to be successful. by all accounts if you looked at us when we started we probably had no business being successful no reason to be successful My business partner and I, we founded this out of a house in our early 20s, going up against behemoths with a lot of money. my business partner and i we founded this out of a house in our early 20s going up against behemoths with a lot of money We were able to succeed and become really the premier brand in the premium fashion space due to a number of things that we've historically done better than others. we were able to succeed and become really the premier brand in the premium fashion space due to a number of things that we've historically done better than others The thing I'll start with that we've become best known for today is our brand, where in this premium fashion space, I'd argue no one has a stronger brand than us. the thing i'll start with that we've become best known for today is our brand where in this premium fashion space i'd argue no one has a stronger brand than us Certainly, no one does it in the way that we do. certainly no one does it in the way that we do The first slide that we were on, I'll actually back up a slide here. the first slide that we were on i'll actually back up a slide here Picture there of Revolve Festival. picture there of revolve festival I'd argue there's no other event out there among brands like it, where it's become this iconic cultural moment within the Coachella Valley Music Festival. It's known worldwide and attracts thousands of influencers, gets billions of impressions on social media, and is really an iconic cultural moment. Of course, that's just part of what we do. That's the highlight of our spring marketing, but we're known for influencer marketing. We pioneered it, and we're the leaders in social media marketing. If you look at compared to our competitors in the premium space, particularly multi-brand, they've never really mastered social media and brand the way that we have. A company like Nordstrom, who's among the legacy players that we've been taking millions, hundreds of millions of dollars of share from, and they're still a $10 billion-plus company. I'd argue there's no other event out there among brands like it, where it's become this iconic cultural moment within the Coachella Valley Music Festival. i'd argue there's no other event out there among brands like it where it's become this iconic cultural moment within the coachella valley music festival It's known worldwide and attracts thousands of influencers, gets billions of impressions on social media, and is really an iconic cultural moment. it's known worldwide and attracts thousands of influencers gets billions of impressions on social media and is really an iconic cultural moment Of course, that's just part of what we do. of course that's just part of what we do That's the highlight of our spring marketing, but we're known for influencer marketing. that's the highlight of our spring marketing but we're known for influencer marketing We pioneered it, and we're the leaders in social media marketing. we pioneered it and we're the leaders in social media marketing If you look at compared to our competitors in the premium space, particularly multi-brand, they've never really mastered social media and brand the way that we have. if you look at compared to our competitors in the premium space particularly multi-brand they've never really mastered social media and brand the way that we have A company like Nordstrom, who's among the legacy players that we've been taking millions, hundreds of millions of dollars of share from, and they're still a $10 billion-plus company. a company like nordstrom who's among the legacy players that we've been taking millions hundreds of millions of dollars of share from and they're still a $10 billion-plus company They've never quite mastered social media and brand in this new age, and it's one of the key reasons we've been able to take share from companies like them. The next one, proprietary data and technology. I don't think there's a company like us. Certainly, others have great technology out there. In most cases, we can't compete directly with a company like Google. As I'll show you later on, we actually replaced the search technology of a company. I'll call it such as Google. I don't want to name the country, essentially a company, a leader in search with our own AI search technology that significantly outperformed them over a double-digit increase in performance versus the incumbent. They've never quite mastered social media and brand in this new age, and it's one of the key reasons we've been able to take share from companies like them. they've never quite mastered social media and brand in this new age and it's one of the key reasons we've been able to take share from companies like them The next one, proprietary data and technology. the next one proprietary data and technology I don't think there's a company like us. i don't think there's a company like us Certainly, others have great technology out there. certainly others have great technology out there In most cases, we can't compete directly with a company like Google. in most cases we can't compete directly with a company like google As I'll show you later on, we actually replaced the search technology of a company. as i'll show you later on we actually replaced the search technology of a company I'll call it such as Google. i'll call it such as google I don't want to name the country, essentially a company, a leader in search with our own AI search technology that significantly outperformed them over a double-digit increase in performance versus the incumbent. i don't want to name the country essentially a company a leader in search with our own ai search technology that significantly outperformed them over a double-digit increase in performance versus the incumbent I don't think there's anyone out there that has the level of tech DNA that we do in the fashion space with the level of investment that we have, where we're able to invest but still run a profitable company where we've been profitable again every single year but one, 2008. That was the Great Recession. We'll get into some examples later, but we'll talk about the ways in which this technology makes us better and gives us a better experience for customers, and again, has been creating this destination, this experience that drives customers towards us and away from these legacy players. Moving on. We have multiple large growth vectors I talked about in the opening slide. That we're still a very small player in the overall market, $700 billion+ apparel market. I don't think there's anyone out there that has the level of tech DNA that we do in the fashion space with the level of investment that we have, where we're able to invest but still run a profitable company where we've been profitable again every single year but one, 2008. i don't think there's anyone out there that has the level of tech dna that we do in the fashion space with the level of investment that we have where we're able to invest but still run a profitable company where we've been profitable again every single year but one 2008 That was the Great Recession. that was the great recession We'll get into some examples later, but we'll talk about the ways in which this technology makes us better and gives us a better experience for customers, and again, has been creating this destination, this experience that drives customers towards us and away from these legacy players. we'll get into some examples later but we'll talk about the ways in which this technology makes us better and gives us a better experience for customers and again has been creating this destination this experience that drives customers towards us and away from these legacy players Moving on. moving on We have multiple large growth vectors I talked about in the opening slide. we have multiple large growth vectors i talked about in the opening slide That we're still a very small player in the overall market, $700 billion+ apparel market. that we're still a very small player in the overall market $700 billion+ apparel market If you look at some of our most direct competitors, like some of these legacy department stores, it's tens of billions of dollars of share at stake in terms of that they've been ceding to us over the years, and we think that process is only going to accelerate as companies like ours, which are built for the next generation of consumers, continue to take share. Moving on, last one I touched on, strong profitability, strong, consistent growth. We've grown in nearly every single year. There were a couple down years. They were all macro related. Being founder-led with a long-term mindset, we've always been willing in a period of macro trouble or in a period where the business needs a reset to take down revenue a bit. We've grown nearly every single year. We've got very consistent growth and cash flows. If you look at some of our most direct competitors, like some of these legacy department stores, it's tens of billions of dollars of share at stake in terms of that they've been ceding to us over the years, and we think that process is only going to accelerate as companies like ours, which are built for the next generation of consumers, continue to take share. if you look at some of our most direct competitors like some of these legacy department stores it's tens of billions of dollars of share at stake in terms of that they've been ceding to us over the years and we think that process is only going to accelerate as companies like ours which are built for the next generation of consumers continue to take share Moving on, last one I touched on, strong profitability, strong, consistent growth. moving on last one i touched on strong profitability strong consistent growth We've grown in nearly every single year. we've grown in nearly every single year There were a couple down years. there were a couple down years They were all macro related. they were all macro related Being founder-led with a long-term mindset, we've always been willing in a period of macro trouble or in a period where the business needs a reset to take down revenue a bit. being founder-led with a long-term mindset we've always been willing in a period of macro trouble or in a period where the business needs a reset to take down revenue a bit We've grown nearly every single year. we've grown nearly every single year We've got very consistent growth and cash flows. we've got very consistent growth and cash flows We'll talk about it. Since IPO, we've generated hundreds of millions of dollars of cash flow. I think very unique for digitally native retailers and for tech-focused companies like ours. All right. Telling you a little bit about our company and the brands that we carry. We're Revolve Group, Inc. We're primarily known for Revolve. That's our main business. It's about 83% of the overall business. Revolve operates in the contemporary space. It's premium product, close to a $300 AOV. We also have a smaller portion of our business. FWRD is our luxury business. It's maybe more comparable to a Saks or Neiman Marcus in terms of the price points that it carries. A much higher AOV, about double that of Revolve, a little bit more than double that of Revolve. It's also doing quite well. We'll talk about it. we'll talk about it Since IPO, we've generated hundreds of millions of dollars of cash flow. since ipo we've generated hundreds of millions of dollars of cash flow I think very unique for digitally native retailers and for tech-focused companies like ours. i think very unique for digitally native retailers and for tech-focused companies like ours All right. all right Telling you a little bit about our company and the brands that we carry. telling you a little bit about our company and the brands that we carry We're Revolve Group, Inc. We're primarily known for Revolve. we're revolve group inc we're primarily known for revolve That's our main business. that's our main business It's about 83% of the overall business. it's about 83% of the overall business Revolve operates in the contemporary space. revolve operates in the contemporary space It's premium product, close to a $300 AOV. it's premium product close to a $300 aov We also have a smaller portion of our business. we also have a smaller portion of our business FWRD is our luxury business. fwrd is our luxury business It's maybe more comparable to a Saks or Neiman Marcus in terms of the price points that it carries. it's maybe more comparable to a saks or neiman marcus in terms of the price points that it carries A much higher AOV, about double that of Revolve, a little bit more than double that of Revolve. a much higher aov about double that of revolve a little bit more than double that of revolve It's also doing quite well. it's also doing quite well As we'll talk about with the disruption in the luxury space, there's a lot of opportunity for FWRD. These two pieces fit together really nicely in a complementary way. Revolve customers, as they gain in spending power, we can graduate them up to FWRD. These two sites very much complement each other and are built on the same technology backbone and on the same brand marketing engine. All right. Looking at the market opportunity, already touched on it. Huge market. It's large, it's growing. There's a number of growth vectors that have been helping fuel our momentum. Certainly, e-commerce growth over the years, and of course, more recently, e-commerce growth has tapered compared to physical. E-commerce is still outperforming physical. It's not quite as strong of a growth driver it was before, but it's still a nice tailwind. As we'll talk about with the disruption in the luxury space, there's a lot of opportunity for FWRD. as we'll talk about with the disruption in the luxury space there's a lot of opportunity for fwrd These two pieces fit together really nicely in a complementary way. these two pieces fit together really nicely in a complementary way Revolve customers, as they gain in spending power, we can graduate them up to FWRD. revolve customers as they gain in spending power we can graduate them up to fwrd These two sites very much complement each other and are built on the same technology backbone and on the same brand marketing engine. All right. these two sites very much complement each other and are built on the same technology backbone and on the same brand marketing engine. all right Looking at the market opportunity, already touched on it. looking at the market opportunity already touched on it Huge market. huge market It's large, it's growing. it's large it's growing There's a number of growth vectors that have been helping fuel our momentum. there's a number of growth vectors that have been helping fuel our momentum Certainly, e-commerce growth over the years, and of course, more recently, e-commerce growth has tapered compared to physical. certainly e-commerce growth over the years and of course more recently e-commerce growth has tapered compared to physical E-commerce is still outperforming physical. e-commerce is still outperforming physical It's not quite as strong of a growth driver it was before, but it's still a nice tailwind. it's not quite as strong of a growth driver it was before but it's still a nice tailwind Importantly for us, though, and we'll talk about it, physical is something completely untapped for us, or nearly completely untapped. We have two physical stores now, and that's more than half of the market that's completely untapped for us that can really supercharge our current growth algorithm, which is already going at a nice rapid pace. Moving on, looking at some key metrics driving performance. I think the most interesting thing on this slide is the percentage of net sales at full price, 80% plus, which is very much an outlier in the fashion industry to achieve those levels of full price. That speaks to our data and technology and our process and our capabilities and how we're able to bring this better experience to customers. Importantly for us, though, and we'll talk about it, physical is something completely untapped for us, or nearly completely untapped. importantly for us though and we'll talk about it physical is something completely untapped for us or nearly completely untapped We have two physical stores now, and that's more than half of the market that's completely untapped for us that can really supercharge our current growth algorithm, which is already going at a nice rapid pace. we have two physical stores now and that's more than half of the market that's completely untapped for us that can really supercharge our current growth algorithm which is already going at a nice rapid pace Moving on, looking at some key metrics driving performance. moving on looking at some key metrics driving performance I think the most interesting thing on this slide is the percentage of net sales at full price, 80% plus, which is very much an outlier in the fashion industry to achieve those levels of full price. i think the most interesting thing on this slide is the percentage of net sales at full price 80% plus which is very much an outlier in the fashion industry to achieve those levels of full price That speaks to our data and technology and our process and our capabilities and how we're able to bring this better experience to customers. that speaks to our data and technology and our process and our capabilities and how we're able to bring this better experience to customers If you look at the legacy department stores, they're in the 60% zone, and we've consistently been able to achieve numbers close to 80, and in the past five years, 80% plus, which is also something important. As we improve our technology and our processes, we have been driving long-term improvements in how we do business. I think this very much speaks to both the profitability profile of the company, but also how we're able to create a better experience, a better destination for consumers. We know how to present product to consumers. We know how to bring up the right product to consumers in the right places with a lot of our personalization algorithms and recommendation algorithms, related products, et cetera, which are nearly all homegrown. I'll say with regards to the homegrown tech, too, we are agnostic. We're not religious about it. If you look at the legacy department stores, they're in the 60% zone, and we've consistently been able to achieve numbers close to 80, and in the past five years, 80% plus, which is also something important. if you look at the legacy department stores they're in the 60% zone and we've consistently been able to achieve numbers close to 80 and in the past five years 80% plus which is also something important As we improve our technology and our processes, we have been driving long-term improvements in how we do business. as we improve our technology and our processes we have been driving long-term improvements in how we do business I think this very much speaks to both the profitability profile of the company, but also how we're able to create a better experience, a better destination for consumers. i think this very much speaks to both the profitability profile of the company but also how we're able to create a better experience a better destination for consumers We know how to present product to consumers. we know how to present product to consumers We know how to bring up the right product to consumers in the right places with a lot of our personalization algorithms and recommendation algorithms, related products, et cetera, which are nearly all homegrown. we know how to bring up the right product to consumers in the right places with a lot of our personalization algorithms and recommendation algorithms related products et cetera which are nearly all homegrown I'll say with regards to the homegrown tech, too, we are agnostic. i'll say with regards to the homegrown tech too we are agnostic We're not religious about it. we're not religious about it We don't do homegrown stuff just to do it. Sometimes we'll use a third party, but we always put our best up against what the best is out there. I mentioned on the search, for many years, we actually used the search technology from the leading player in search, and we'll always do that. The fact that so much of what we do is homegrown speaks to our very unique capabilities. I think the reason we're able to outperform these companies that have larger investment is because certainly, we're great at tech, but we know fashion in a way that these tech-focused companies do not know fashion. We know how to craft technology to the fashion space. Then, of course, we know our customer and our brand. We don't do homegrown stuff just to do it. we don't do homegrown stuff just to do it Sometimes we'll use a third party, but we always put our best up against what the best is out there. sometimes we'll use a third party but we always put our best up against what the best is out there I mentioned on the search, for many years, we actually used the search technology from the leading player in search, and we'll always do that. i mentioned on the search for many years we actually used the search technology from the leading player in search and we'll always do that The fact that so much of what we do is homegrown speaks to our very unique capabilities. the fact that so much of what we do is homegrown speaks to our very unique capabilities I think the reason we're able to outperform these companies that have larger investment is because certainly, we're great at tech, but we know fashion in a way that these tech-focused companies do not know fashion. i think the reason we're able to outperform these companies that have larger investment is because certainly we're great at tech but we know fashion in a way that these tech-focused companies do not know fashion We know how to craft technology to the fashion space. we know how to craft technology to the fashion space Then, of course, we know our customer and our brand. then of course we know our customer and our brand These abilities to kind of customize and tailor technology to what we do, which is something that the big companies can't do, is why we're able to out-compete them and produce better technology, which ultimately produces a better experience, better financial metrics. The other thing I want to talk about is customer loyalty, which comes from a combination of things. The great on-site experience that we provide customers, which again, is powered by technology, it's powered by brand, it's powered by data. It's also powered by a mentality, customer-centric, customer-first mentality. Really going back to this idea of that we had no business succeeding 20 years ago. I always liked the slogan from, I think it was Avis many years ago of, We're number two, so we try harder. That was always the mindset that we had. We're the underdog. These abilities to kind of customize and tailor technology to what we do, which is something that the big companies can't do, is why we're able to out-compete them and produce better technology, which ultimately produces a better experience, better financial metrics. these abilities to kind of customize and tailor technology to what we do which is something that the big companies can't do is why we're able to out-compete them and produce better technology which ultimately produces a better experience better financial metrics The other thing I want to talk about is customer loyalty, which comes from a combination of things. the other thing i want to talk about is customer loyalty which comes from a combination of things The great on-site experience that we provide customers, which again, is powered by technology, it's powered by brand, it's powered by data. the great on-site experience that we provide customers which again is powered by technology it's powered by brand it's powered by data It's also powered by a mentality, customer-centric, customer-first mentality. it's also powered by a mentality customer-centric customer-first mentality Really going back to this idea of that we had no business succeeding 20 years ago. really going back to this idea of that we had no business succeeding 20 years ago I always liked the slogan from, I think it was Avis many years ago of, We're number two, so we try harder. i always liked the slogan from i think it was avis many years ago of we're number two so we try harder That was always the mindset that we had. that was always the mindset that we had We're the underdog. we're the underdog We're going to try harder. We're going to be the best at every single thing, starting with customer experience, so very customer-centric. Free shipping, free returns, we were the innovators of that, along with Zappos. I would say we both independently invented that concept of the home as the dressing room. For us back in 2003, it was a core founding principle. Just beyond that, just having incredible customer experience across the board. You see it in a lot of the metrics that we mentioned, really high customer satisfaction ratios. We also have, and I think it's on the next slide, we'll talk about our customer retention, which is really high. We're going to try harder. we're going to try harder We're going to be the best at every single thing, starting with customer experience, so very customer-centric. we're going to be the best at every single thing starting with customer experience so very customer-centric Free shipping, free returns, we were the innovators of that, along with Zappos. free shipping free returns we were the innovators of that along with zappos I would say we both independently invented that concept of the home as the dressing room. i would say we both independently invented that concept of the home as the dressing room For us back in 2003, it was a core founding principle. for us back in 2003 it was a core founding principle Just beyond that, just having incredible customer experience across the board. just beyond that just having incredible customer experience across the board You see it in a lot of the metrics that we mentioned, really high customer satisfaction ratios. you see it in a lot of the metrics that we mentioned really high customer satisfaction ratios We also have, and I think it's on the next slide, we'll talk about our customer retention, which is really high. we also have and i think it's on the next slide we'll talk about our customer retention which is really high We still to this day include pre-printed return stickers and labels in every order that we ship, which is something that the Zappos' of the world and the Zalandos have actually gone away from as they've looked to get kind of last bits of profitability out of their customer. It's not to say that we'll never do it, but we will probably never do it. I'm never religious about anything, but I always have a long-term mindset, and I know that customers come to us for that experience. They know we're going to provide a better experience than anyone else, and if I'm looking for margin, I'm generally going to get it elsewhere. I talked about the customer loyalty. We have really nice revenue retention rates, 89% revenue retention year-over-year in the most recent year. Very much in line with historicals. We still to this day include pre-printed return stickers and labels in every order that we ship, which is something that the Zappos' of the world and the Zalandos have actually gone away from as they've looked to get kind of last bits of profitability out of their customer. we still to this day include pre-printed return stickers and labels in every order that we ship which is something that the zappos' of the world and the zalandos have actually gone away from as they've looked to get kind of last bits of profitability out of their customer It's not to say that we'll never do it, but we will probably never do it. it's not to say that we'll never do it but we will probably never do it I'm never religious about anything, but I always have a long-term mindset, and I know that customers come to us for that experience. i'm never religious about anything but i always have a long-term mindset and i know that customers come to us for that experience They know we're going to provide a better experience than anyone else, and if I'm looking for margin, I'm generally going to get it elsewhere. they know we're going to provide a better experience than anyone else and if i'm looking for margin i'm generally going to get it elsewhere I talked about the customer loyalty. i talked about the customer loyalty We have really nice revenue retention rates, 89% revenue retention year-over-year in the most recent year. we have really nice revenue retention rates 89% revenue retention year-over-year in the most recent year Very much in line with historicals. very much in line with historicals Now, during the COVID and post-COVID period, if you look at historical numbers, you see that number going around up and down, just kind of due to the macro going on. The 89%, very strong number, again, very much in line with historicals. You can see we have a really nice continued growth in active customers over time. When you treat your customers well, I was talking before the meeting with some folks about some other companies they were looking at that had some financial troubles recently. I pointed out it's because of their model. Their model locks people in. They're not treating customers well. You can show growth for a while. It's hard to show consistent growth for 20-plus years if you're not treating your customers well, if you're not providing a best-in-class experience. That's always our mentality. Now, during the COVID and post-COVID period, if you look at historical numbers, you see that number going around up and down, just kind of due to the macro going on. now during the covid and post-covid period if you look at historical numbers you see that number going around up and down just kind of due to the macro going on The 89%, very strong number, again, very much in line with historicals. the 89% very strong number again very much in line with historicals You can see we have a really nice continued growth in active customers over time. you can see we have a really nice continued growth in active customers over time When you treat your customers well, I was talking before the meeting with some folks about some other companies they were looking at that had some financial troubles recently. when you treat your customers well i was talking before the meeting with some folks about some other companies they were looking at that had some financial troubles recently I pointed out it's because of their model. i pointed out it's because of their model Their model locks people in. their model locks people in They're not treating customers well. they're not treating customers well You can show growth for a while. you can show growth for a while It's hard to show consistent growth for 20-plus years if you're not treating your customers well, if you're not providing a best-in-class experience. it's hard to show consistent growth for 20-plus years if you're not treating your customers well if you're not providing a best-in-class experience That's always our mentality. that's always our mentality Again, you see it in those revenue retention rates, and that's why we're built for long-term success and why we're able to continue to grow year after year. 20-plus years of data and technology, we talked about it. My background was in engineering before founding Revolve. All of our core systems are homegrown. I'm proud to say many of the core systems that we built 20-plus years ago are still powering a billion-plus company today. They were built right from the start to scale. They were built to be flexible. They were built to allow us to continue to innovate. Again, it shows up in the numbers, and we're constantly improving our algorithms and tech. Last year, one of our big wins was we made a significant improvement to our markdown process, which the original markdown process was automated. Again, you see it in those revenue retention rates, and that's why we're built for long-term success and why we're able to continue to grow year after year. 20-plus years of data and technology, we talked about it. again you see it in those revenue retention rates and that's why we're built for long-term success and why we're able to continue to grow year after year 20-plus years of data and technology we talked about it My background was in engineering before founding Revolve. my background was in engineering before founding revolve All of our core systems are homegrown. all of our core systems are homegrown I'm proud to say many of the core systems that we built 20-plus years ago are still powering a billion-plus company today. i'm proud to say many of the core systems that we built 20-plus years ago are still powering a billion-plus company today They were built right from the start to scale. they were built right from the start to scale They were built to be flexible. they were built to be flexible They were built to allow us to continue to innovate. they were built to allow us to continue to innovate Again, it shows up in the numbers, and we're constantly improving our algorithms and tech. again it shows up in the numbers and we're constantly improving our algorithms and tech Last year, one of our big wins was we made a significant improvement to our markdown process, which the original markdown process was automated. last year one of our big wins was we made a significant improvement to our markdown process which the original markdown process was automated It was actually written by me, probably 18+ years ago. I actually challenged the team around a year ago, I said, Hey, look, we have these things. It was written by me. I'm proud of that. I'm glad we're still using it, but I'll bet we can do better, right? We have a big team now, and an incredible team of really smart people. Let's take a look at that. Let's see what we can do better. Also, technology has changed, right? AI technology, a lot of advances in technology. Let's see what we can do. The team dug in, and they were able to create some new, better automated processes leveraging the latest technology. The results were we had a huge margin gain last year versus expectation, even with the impact of the tariffs. We showed strong margin gains last year. It was actually written by me, probably 18+ years ago. it was actually written by me probably 18+ years ago I actually challenged the team around a year ago, I said, Hey, look, we have these things. i actually challenged the team around a year ago i said hey look we have these things It was written by me. it was written by me I'm proud of that. i'm proud of that I'm glad we're still using it, but I'll bet we can do better, right? i'm glad we're still using it but i'll bet we can do better right We have a big team now, and an incredible team of really smart people. we have a big team now and an incredible team of really smart people Let's take a look at that. let's take a look at that Let's see what we can do better. let's see what we can do better Also, technology has changed, right? also technology has changed right AI technology, a lot of advances in technology. ai technology a lot of advances in technology Let's see what we can do. let's see what we can do The team dug in, and they were able to create some new, better automated processes leveraging the latest technology. the team dug in and they were able to create some new better automated processes leveraging the latest technology The results were we had a huge margin gain last year versus expectation, even with the impact of the tariffs. the results were we had a huge margin gain last year versus expectation even with the impact of the tariffs We showed strong margin gains last year. we showed strong margin gains last year It's just an example of how we're continuing to innovate. The algorithms that power our sites, the recommendation algorithms, the personalization algorithms, all built on homegrown technology. It really covers all facets of our business. It allows us to be more efficient. We have some really cool technologies that allow us to automatically process invoices. In the age of AI, it's disrupting, I'd say, life in general, in a good way. Business, life, maybe it hasn't quite disrupted yet. Revolve was built for this moment because we have such a strong foundation in data and technology. I'll talk about a few really cool examples that we've demonstrated publicly before on the next slide. It's just an example of how we're continuing to innovate. it's just an example of how we're continuing to innovate The algorithms that power our sites, the recommendation algorithms, the personalization algorithms, all built on homegrown technology. the algorithms that power our sites the recommendation algorithms the personalization algorithms all built on homegrown technology It really covers all facets of our business. it really covers all facets of our business It allows us to be more efficient. it allows us to be more efficient We have some really cool technologies that allow us to automatically process invoices. we have some really cool technologies that allow us to automatically process invoices In the age of AI, it's disrupting, I'd say, life in general, in a good way. in the age of ai it's disrupting i'd say life in general in a good way Business, life, maybe it hasn't quite disrupted yet. business life maybe it hasn't quite disrupted yet Revolve was built for this moment because we have such a strong foundation in data and technology. revolve was built for this moment because we have such a strong foundation in data and technology I'll talk about a few really cool examples that we've demonstrated publicly before on the next slide. i'll talk about a few really cool examples that we've demonstrated publicly before on the next slide Also, one really cool anecdote is my Co-Founder and Co-Chief Executive Officer and I constantly have conversations with the team and say, maybe it was a few months ago, we were talking with one of the senior engineers who's very heavy in AI work for us. We're talking about some recent work he'd done, and we're talking about, Okay, what's the next low-hanging fruit we can go after? Because, as the CEO, that's typically how you think. What's the low-hanging fruit? What's the next easy win? The engineer came back, and he said, I don't want low-hanging fruit. Give me high-hanging fruit. Give me something really difficult. Which is great, and that's the mentality of the people that we have. The project we gave this person was actually with regard to our retail stores, which is still a new area for us. Also, one really cool anecdote is my Co-Founder and Co-Chief Executive Officer and I constantly have conversations with the team and say, maybe it was a few months ago, we were talking with one of the senior engineers who's very heavy in AI work for us. also one really cool anecdote is my co-founder and co-chief executive officer and i constantly have conversations with the team and say maybe it was a few months ago we were talking with one of the senior engineers who's very heavy in ai work for us We're talking about some recent work he'd done, and we're talking about, Okay, what's the next low-hanging fruit we can go after? we're talking about some recent work he'd done and we're talking about okay what's the next low-hanging fruit we can go after Because, as the CEO, that's typically how you think. because as the ceo that's typically how you think What's the low-hanging fruit? what's the low-hanging fruit What's the next easy win? what's the next easy win The engineer came back, and he said, I don't want low-hanging fruit. the engineer came back and he said i don't want low-hanging fruit Give me high-hanging fruit. give me high-hanging fruit Give me something really difficult. give me something really difficult Which is great, and that's the mentality of the people that we have. which is great and that's the mentality of the people that we have The project we gave this person was actually with regard to our retail stores, which is still a new area for us. the project we gave this person was actually with regard to our retail stores which is still a new area for us We wanted better tracking of movements of customers in the store, what they were doing. For example, how many were going into the dressing rooms, how many were going to different areas. We challenged them to use the latest in AI technology to be able to track what people were doing out in the store, to be able to count how many people are going in and out of the dressing room, how many people are going in and out of certain areas. To help us build those foundational data pieces for physical retail that we've always had on the online side. Within, I'd say, around a week and a half, this guy came back, and he had an incredible prototype. I swear it looked like something out of The Terminator movie. You can see the videos, and it's auto-targeting, and counting all the people. We wanted better tracking of movements of customers in the store, what they were doing. we wanted better tracking of movements of customers in the store what they were doing For example, how many were going into the dressing rooms, how many were going to different areas. for example how many were going into the dressing rooms how many were going to different areas We challenged them to use the latest in AI technology to be able to track what people were doing out in the store, to be able to count how many people are going in and out of the dressing room, how many people are going in and out of certain areas. we challenged them to use the latest in ai technology to be able to track what people were doing out in the store to be able to count how many people are going in and out of the dressing room how many people are going in and out of certain areas To help us build those foundational data pieces for physical retail that we've always had on the online side. to help us build those foundational data pieces for physical retail that we've always had on the online side Within, I'd say, around a week and a half, this guy came back, and he had an incredible prototype. within i'd say around a week and a half this guy came back and he had an incredible prototype I swear it looked like something out of The Terminator movie. i swear it looked like something out of the terminator movie You can see the videos, and it's auto-targeting, and counting all the people. you can see the videos and it's auto-targeting and counting all the people I think it just goes to show how in this age of AI, a company like ours and a team like ours is really able to move fast and innovate and use the latest in technology to disrupt and do things in a better way than these legacy players out there. These are the things that have made us successful online, are going to make us successful on the physical side. A couple of cool examples here. I don't know if my eyesight is getting old in my age, but I've got a bit of trouble seeing some of these slides. First one, AI-powered search. We talked about it. Really cool double-digit gains versus the incumbent, the worldwide leader in search. Again, just goes to show the power of what our teams can do. I think it just goes to show how in this age of AI, a company like ours and a team like ours is really able to move fast and innovate and use the latest in technology to disrupt and do things in a better way than these legacy players out there. i think it just goes to show how in this age of ai a company like ours and a team like ours is really able to move fast and innovate and use the latest in technology to disrupt and do things in a better way than these legacy players out there These are the things that have made us successful online, are going to make us successful on the physical side. these are the things that have made us successful online are going to make us successful on the physical side A couple of cool examples here. a couple of cool examples here I don't know if my eyesight is getting old in my age, but I've got a bit of trouble seeing some of these slides. i don't know if my eyesight is getting old in my age but i've got a bit of trouble seeing some of these slides First one, AI-powered search. first one ai-powered search We talked about it. we talked about it Really cool double-digit gains versus the incumbent, the worldwide leader in search. really cool double-digit gains versus the incumbent the worldwide leader in search Again, just goes to show the power of what our teams can do. again just goes to show the power of what our teams can do On the slide, there's an example of an AI search, the type of search that AI does better than traditional search. Traditional search, very good with specific keywords, or it has some tricks it can layer over that where it can know certain words are similar to another. Where AI search excels at is things that might not necessarily show up in labels. Things that might be more vibes or feelings or aesthetics. Where if you don't have incredible tagging across every product, it's not going to show up. We've got an example here, dresses in Ibiza, I believe is the example. The AI-powered search is able to immediately know what that is. It doesn't matter that none of the dresses are tagged as Ibiza. On the slide, there's an example of an AI search, the type of search that AI does better than traditional search. on the slide there's an example of an ai search the type of search that ai does better than traditional search Traditional search, very good with specific keywords, or it has some tricks it can layer over that where it can know certain words are similar to another. traditional search very good with specific keywords or it has some tricks it can layer over that where it can know certain words are similar to another Where AI search excels at is things that might not necessarily show up in labels. where ai search excels at is things that might not necessarily show up in labels Things that might be more vibes or feelings or aesthetics. things that might be more vibes or feelings or aesthetics Where if you don't have incredible tagging across every product, it's not going to show up. where if you don't have incredible tagging across every product it's not going to show up We've got an example here, dresses in Ibiza, I believe is the example. we've got an example here dresses in ibiza i believe is the example The AI-powered search is able to immediately know what that is. the ai-powered search is able to immediately know what that is It doesn't matter that none of the dresses are tagged as Ibiza. it doesn't matter that none of the dresses are tagged as ibiza The AI knows what the vibe of Ibiza is, and it knows what the vibe of our dresses are, and it's able to put together a result, and it's pretty darn incredible. Next one, AI-enabled virtual try-on. This is actually through a third-party partner of ours, and we do have a mutually beneficial financial relationship with them, and essentially an interest in this company. It goes to show how we will use the best in third-party technology also. We've seen really nice gains with this tool. Allows customers to, on a virtual model, create outputs using AI, pretty much in real time. We have not really spread this across the whole website in a big way yet. We're starting to expand it. It's supported on a large number of products, not all of them yet. The AI knows what the vibe of Ibiza is, and it knows what the vibe of our dresses are, and it's able to put together a result, and it's pretty darn incredible. the ai knows what the vibe of ibiza is and it knows what the vibe of our dresses are and it's able to put together a result and it's pretty darn incredible Next one, AI-enabled virtual try-on. next one ai-enabled virtual try-on This is actually through a third-party partner of ours, and we do have a mutually beneficial financial relationship with them, and essentially an interest in this company. this is actually through a third-party partner of ours and we do have a mutually beneficial financial relationship with them and essentially an interest in this company It goes to show how we will use the best in third-party technology also. it goes to show how we will use the best in third-party technology also We've seen really nice gains with this tool. we've seen really nice gains with this tool Allows customers to, on a virtual model, create outputs using AI, pretty much in real time. allows customers to on a virtual model create outputs using ai pretty much in real time We have not really spread this across the whole website in a big way yet. we have not really spread this across the whole website in a big way yet We're starting to expand it. we're starting to expand it It's supported on a large number of products, not all of them yet. it's supported on a large number of products not all of them yet We've seen really strong gains here, and just another example of how AI really improves the customer experience. The last one here, generative AI Q&A. You've seen it on other sites such as Amazon. This is another thing that we're rolling out, and of course, Amazon has great tech as well. We've rolled this out on our dresses category, on the main website, and we've seen nice lift with that. That's something that we're rolling out across the board. All right, diving into some key financial metrics. A long-term track record of healthy top-line growth. Most recent quarter, things are accelerating, 16% growth year-over-year in Q1. We've been at this 20-plus years, but we think we're getting better than ever, and we're getting stronger than ever. We've seen really strong gains here, and just another example of how AI really improves the customer experience. we've seen really strong gains here and just another example of how ai really improves the customer experience The last one here, generative AI Q&A. the last one here generative ai q&a You've seen it on other sites such as Amazon. you've seen it on other sites such as amazon This is another thing that we're rolling out, and of course, Amazon has great tech as well. this is another thing that we're rolling out and of course amazon has great tech as well We've rolled this out on our dresses category, on the main website, and we've seen nice lift with that. we've rolled this out on our dresses category on the main website and we've seen nice lift with that That's something that we're rolling out across the board. that's something that we're rolling out across the board All right, diving into some key financial metrics. all right diving into some key financial metrics A long-term track record of healthy top-line growth. a long-term track record of healthy top-line growth Most recent quarter, things are accelerating, 16% growth year-over-year in Q1. most recent quarter things are accelerating 16% growth year-over-year in q1 We've been at this 20-plus years, but we think we're getting better than ever, and we're getting stronger than ever. we've been at this 20-plus years but we think we're getting better than ever and we're getting stronger than ever Certainly, in the age of AI and technology, we think we're built to accelerate and take advantage of this current opportunity. Again, you can see nice growth and continued growth in active customers over time. Next one, consistent profitability, profitable every year except one. This shows the profitability and Adjusted EBITDA for the past couple of years. Nice consistent growth there. Nice expansion in margins as we've grown revenue at the same time, with $90-plus million in Adjusted EBITDA in the most recent year. Again, leading to market share gains over many years. 16% CAGR over the past approximately 10 years, outpacing the overall e-com market at 13%. We believe that's because we're able to take share from these players and that we've got a better experience for customers. Finally, here, on the financial target side. Certainly, in the age of AI and technology, we think we're built to accelerate and take advantage of this current opportunity. certainly in the age of ai and technology we think we're built to accelerate and take advantage of this current opportunity Again, you can see nice growth and continued growth in active customers over time. again you can see nice growth and continued growth in active customers over time Next one, consistent profitability, profitable every year except one. next one consistent profitability profitable every year except one This shows the profitability and Adjusted EBITDA for the past couple of years. this shows the profitability and adjusted ebitda for the past couple of years Nice consistent growth there. nice consistent growth there Nice expansion in margins as we've grown revenue at the same time, with $90-plus million in Adjusted EBITDA in the most recent year. nice expansion in margins as we've grown revenue at the same time with $90-plus million in adjusted ebitda in the most recent year Again, leading to market share gains over many years. 16% CAGR over the past approximately 10 years, outpacing the overall e-com market at 13%. again leading to market share gains over many years 16% cagr over the past approximately 10 years outpacing the overall e-com market at 13% We believe that's because we're able to take share from these players and that we've got a better experience for customers. we believe that's because we're able to take share from these players and that we've got a better experience for customers Finally, here, on the financial target side. finally here on the financial target side Progress Towards Medium-Term Financial Targets are, we'll call it medium-term financial targets. It is a big focus of ours to increase our margins over time. As a founder, I'm always going to put experience first, customers first. As a business person, we have to run a profitable business. We've always done so. The most recent trailing EBITDA margins in the past 12 months, close to 8%. That's not where we want to be. We want to be at 10% plus in the midterm, and so we're driving towards there. We'll do the things to kind of tweak the levers we need to do to get there. There's a couple of levers that we'll talk about. Then longer term, I want to be at 12% plus. Progress Towards Medium-Term Financial Targets are, we'll call it medium-term financial targets. progress towards medium-term financial targets are we'll call it medium-term financial targets It is a big focus of ours to increase our margins over time. it is a big focus of ours to increase our margins over time As a founder, I'm always going to put experience first, customers first. as a founder i'm always going to put experience first customers first As a business person, we have to run a profitable business. as a business person we have to run a profitable business We've always done so. we've always done so The most recent trailing EBITDA margins in the past 12 months, close to 8%. the most recent trailing ebitda margins in the past 12 months close to 8% That's not where we want to be. that's not where we want to be We want to be at 10% plus in the midterm, and so we're driving towards there. we want to be at 10% plus in the midterm and so we're driving towards there We'll do the things to kind of tweak the levers we need to do to get there. we'll do the things to kind of tweak the levers we need to do to get there There's a couple of levers that we'll talk about. there's a couple of levers that we'll talk about Then longer term, I want to be at 12% plus. then longer term i want to be at 12% plus I think that's a nice, healthy place for a business like ours to be, where we're balancing profitability and customer experience and growth. Cash flow generation. Since IPO, we've generated hundreds of millions of dollars of cash. Something I'm very proud of is a founder-led bootstrap company for the first nine years, we've always been able to generate cash. We've always run our business in a very disciplined way, that's continued post-IPO. I think it's very much differentiated from other digitally native companies. We combine the best of probably the old school physical retail merchandising mindset and kind of profitability-based mindset with the newest and latest and greatest in tech and the mindset to drive and innovate there. Talking about capital allocation. As a founder-led business, we have a very long-term mindset. First and foremost, we want to invest back into the business. I think that's a nice, healthy place for a business like ours to be, where we're balancing profitability and customer experience and growth. i think that's a nice healthy place for a business like ours to be where we're balancing profitability and customer experience and growth Cash flow generation. cash flow generation Since IPO, we've generated hundreds of millions of dollars of cash. since ipo we've generated hundreds of millions of dollars of cash Something I'm very proud of is a founder-led bootstrap company for the first nine years, we've always been able to generate cash. something i'm very proud of is a founder-led bootstrap company for the first nine years we've always been able to generate cash We've always run our business in a very disciplined way, that's continued post-IPO. we've always run our business in a very disciplined way that's continued post-ipo I think it's very much differentiated from other digitally native companies. i think it's very much differentiated from other digitally native companies We combine the best of probably the old school physical retail merchandising mindset and kind of profitability-based mindset with the newest and latest and greatest in tech and the mindset to drive and innovate there. we combine the best of probably the old school physical retail merchandising mindset and kind of profitability-based mindset with the newest and latest and greatest in tech and the mindset to drive and innovate there Talking about capital allocation. talking about capital allocation As a founder-led business, we have a very long-term mindset. as a founder-led business we have a very long-term mindset First and foremost, we want to invest back into the business. first and foremost we want to invest back into the business Of course, since we try to run an efficient business, we often have excess cash, and we've been building up excess cash. It's often a question I get from investors, what do we plan on doing with all that excess cash? As the largest shareholders in the business, my founder and I still own 40% plus of the business, we are 100% in the investors' seat, where we want what investors want. In some form or another, we want that cash returned back to investors. Most importantly, we want to make the best financial decision with it. We're very long-term focused, opportunistic-minded. Number two, after investing in the business, we have is thoughtful M&A. For us, this is always a tricky balance, right? Where we want to be opportunistic. I like having that cash on the balance sheet. Of course, since we try to run an efficient business, we often have excess cash, and we've been building up excess cash. of course since we try to run an efficient business we often have excess cash and we've been building up excess cash It's often a question I get from investors, what do we plan on doing with all that excess cash? it's often a question i get from investors what do we plan on doing with all that excess cash As the largest shareholders in the business, my founder and I still own 40% plus of the business, we are 100% in the investors' seat, where we want what investors want. as the largest shareholders in the business my founder and i still own 40% plus of the business we are 100% in the investors' seat where we want what investors want In some form or another, we want that cash returned back to investors. in some form or another we want that cash returned back to investors Most importantly, we want to make the best financial decision with it. most importantly we want to make the best financial decision with it We're very long-term focused, opportunistic-minded. we're very long-term focused opportunistic-minded Number two, after investing in the business, we have is thoughtful M&A. number two after investing in the business we have is thoughtful m&a For us, this is always a tricky balance, right? for us this is always a tricky balance right Where we want to be opportunistic. where we want to be opportunistic I like having that cash on the balance sheet. i like having that cash on the balance sheet You never know when the right opportunity is going to be there, some kind of disruption, and I like having that cash. At the same time, we'll thoughtfully buy back shares, start to return money to investors as well. In the most recent quarter, we've actually bought back $8 million in shares already this quarter. All right, looking ahead, I think what's incredible, I talked a lot about the core business, why it's so powerful, why we've been so successful. We have really lane-opening, game-changing initiatives in the works on the horizon that can supercharge our growth rates, which are really already quite nice, right? For the space and our size. The first one I want to talk about here quickly, Revolve Los Angeles, our namesake label. We launched it earlier this year. We have never done a Revolve-based label. You never know when the right opportunity is going to be there, some kind of disruption, and I like having that cash. you never know when the right opportunity is going to be there some kind of disruption and i like having that cash At the same time, we'll thoughtfully buy back shares, start to return money to investors as well. at the same time we'll thoughtfully buy back shares start to return money to investors as well In the most recent quarter, we've actually bought back $8 million in shares already this quarter. in the most recent quarter we've actually bought back $8 million in shares already this quarter All right, looking ahead, I think what's incredible, I talked a lot about the core business, why it's so powerful, why we've been so successful. all right looking ahead i think what's incredible i talked a lot about the core business why it's so powerful why we've been so successful We have really lane-opening, game-changing initiatives in the works on the horizon that can supercharge our growth rates, which are really already quite nice, right? we have really lane-opening game-changing initiatives in the works on the horizon that can supercharge our growth rates which are really already quite nice right For the space and our size. for the space and our size The first one I want to talk about here quickly, Revolve Los Angeles, our namesake label. the first one i want to talk about here quickly revolve los angeles our namesake label We launched it earlier this year. we launched it earlier this year We have never done a Revolve-based label. we have never done a revolve-based label For us, that's a very big step. We do have own brands. Close to 20% of our business is own brands, it's always been other labels. It's never been Revolve. I think this really opens things up for us from a marketing playbook, from a brand playbook, from a margin playbook, having our own label in ways that having these essentially what appear to be third-party labels owned by us and our own brands previously. We're still in the early stages here. We're very long-term minded. I think for some in the investment community, the launch of Revolve Los Angeles might have been confusing of why are we launching so high-end. We launched an incredible premium product. We used some of the best designers in the world for it. For us, that's a very big step. for us that's a very big step We do have own brands. we do have own brands Close to 20% of our business is own brands, it's always been other labels. close to 20% of our business is own brands it's always been other labels It's never been Revolve. it's never been revolve I think this really opens things up for us from a marketing playbook, from a brand playbook, from a margin playbook, having our own label in ways that having these essentially what appear to be third-party labels owned by us and our own brands previously. i think this really opens things up for us from a marketing playbook from a brand playbook from a margin playbook having our own label in ways that having these essentially what appear to be third-party labels owned by us and our own brands previously We're still in the early stages here. we're still in the early stages here We're very long-term minded. we're very long-term minded I think for some in the investment community, the launch of Revolve Los Angeles might have been confusing of why are we launching so high-end. i think for some in the investment community the launch of revolve los angeles might have been confusing of why are we launching so high-end We launched an incredible premium product. we launched an incredible premium product We used some of the best designers in the world for it. we used some of the best designers in the world for it Really show-stopping pieces, $2,000-plus, incredible pieces that would look appropriate walking down the finest luxury shows in the world. It's part of a long-term positioning in play. We want to open up with the best of the best. Then mid to longer term, we're going to do some things that are more commercial and where we think we can really build margin and drive gains. We have some really cool things in the works with sort of sub-line we're calling Revolve Sport. We have some really cool things in the works with various logoed gear. These basics and logoed gear and kind of distinctive styles that are very accessible, this is where this can be huge profit drivers for us down the road. We're building towards it. Next, joint venture with Cardi B. Cardi B has actually been a phenomenal business partner. Really show-stopping pieces, $2,000-plus, incredible pieces that would look appropriate walking down the finest luxury shows in the world. really show-stopping pieces $2,000-plus incredible pieces that would look appropriate walking down the finest luxury shows in the world It's part of a long-term positioning in play. it's part of a long-term positioning in play We want to open up with the best of the best. we want to open up with the best of the best Then mid to longer term, we're going to do some things that are more commercial and where we think we can really build margin and drive gains. then mid to longer term we're going to do some things that are more commercial and where we think we can really build margin and drive gains We have some really cool things in the works with sort of sub-line we're calling Revolve Sport. we have some really cool things in the works with sort of sub-line we're calling revolve sport We have some really cool things in the works with various logoed gear. we have some really cool things in the works with various logoed gear These basics and logoed gear and kind of distinctive styles that are very accessible, this is where this can be huge profit drivers for us down the road. these basics and logoed gear and kind of distinctive styles that are very accessible this is where this can be huge profit drivers for us down the road We're building towards it. we're building towards it Next, joint venture with Cardi B. next joint venture with cardi b Cardi B has actually been a phenomenal business partner. cardi b has actually been a phenomenal business partner Obviously, as her public persona, she works hard. She's very business-focused, and she's been a great partner, doing everything that we've advised her in terms of what needs to be done to make a brand successful. We launched a brand, Grow Good, with her, a haircare brand for the textured hair market. We've gotten positive feedback from people without textured hair as well. We'll see where that brand goes. Incredible launch. First set of products sold out, I believe, in less than an hour. We increased the orders, and then the next set also sold out in less than an hour. We have some big orders in the works there. We'll see where that brand goes. A lot of opportunity from a revenue standpoint, from a margin standpoint. Obviously, beauty has really nice margins, and a very concise product set. It's only 6 SKUs. Obviously, as her public persona, she works hard. obviously as her public persona she works hard She's very business-focused, and she's been a great partner, doing everything that we've advised her in terms of what needs to be done to make a brand successful. she's very business-focused and she's been a great partner doing everything that we've advised her in terms of what needs to be done to make a brand successful We launched a brand, Grow Good, with her, a haircare brand for the textured hair market. we launched a brand grow good with her a haircare brand for the textured hair market We've gotten positive feedback from people without textured hair as well. we've gotten positive feedback from people without textured hair as well We'll see where that brand goes. we'll see where that brand goes Incredible launch. incredible launch First set of products sold out, I believe, in less than an hour. first set of products sold out i believe in less than an hour We increased the orders, and then the next set also sold out in less than an hour. we increased the orders and then the next set also sold out in less than an hour We have some big orders in the works there. we have some big orders in the works there We'll see where that brand goes. we'll see where that brand goes A lot of opportunity from a revenue standpoint, from a margin standpoint. a lot of opportunity from a revenue standpoint from a margin standpoint Obviously, beauty has really nice margins, and a very concise product set. obviously beauty has really nice margins and a very concise product set It's only 6 SKUs. it's only 6 skus I think some really attractive things about that business. Then lastly, I touched on it, physical retail. Revolve has really excelled online. I think we do it better than anyone else. Physical retail is the next mountain for us to conquer. We're still working up our muscles there. We've got two stores. We're learning how to be the best we can in those stores. Our intent is to conquer physical retail as well. It's still called around 60% of the apparel market, that's huge untapped space for us. Importantly, a large portion of the customers in our physical retail store, even in the one we have in Los Angeles, are new customers. It can also supercharge the e-com business as we roll out these physical retail stores. I think some really attractive things about that business. i think some really attractive things about that business Then lastly, I touched on it, physical retail. then lastly i touched on it physical retail Revolve has really excelled online. revolve has really excelled online I think we do it better than anyone else. i think we do it better than anyone else Physical retail is the next mountain for us to conquer. physical retail is the next mountain for us to conquer We're still working up our muscles there. we're still working up our muscles there We've got two stores. we've got two stores We're learning how to be the best we can in those stores. we're learning how to be the best we can in those stores Our intent is to conquer physical retail as well. our intent is to conquer physical retail as well It's still called around 60% of the apparel market, that's huge untapped space for us. it's still called around 60% of the apparel market that's huge untapped space for us Importantly, a large portion of the customers in our physical retail store, even in the one we have in Los Angeles, are new customers. importantly a large portion of the customers in our physical retail store even in the one we have in los angeles are new customers It can also supercharge the e-com business as we roll out these physical retail stores. it can also supercharge the e-com business as we roll out these physical retail stores We're still less than 3% penetrated in the overall market, which again speaks to our strong growth trajectory and profile. All right. The next slide, talking about, again, long-term mindset, our stock ownership. I touched on it. My business partner and I own 40% plus of the stock still. We think as you do, we are the biggest investors in the stock. Also, fun fact, I guess, CEO compensation benchmarks. We're paid quite well. I certainly can't complain about $400,000 plus a year. We're underpaid versus the overall CEO market. That's fine with us. We make our money off of the business and the stock growing, not off of our CEO compensation. The $400,000 is enough to keep my family happy, and then, in terms of long-term wealth creation, we're driving it through stock growth. All right. We're still less than 3% penetrated in the overall market, which again speaks to our strong growth trajectory and profile. we're still less than 3% penetrated in the overall market which again speaks to our strong growth trajectory and profile All right. all right The next slide, talking about, again, long-term mindset, our stock ownership. the next slide talking about again long-term mindset our stock ownership I touched on it. i touched on it My business partner and I own 40% plus of the stock still. my business partner and i own 40% plus of the stock still We think as you do, we are the biggest investors in the stock. we think as you do we are the biggest investors in the stock Also, fun fact, I guess, CEO compensation benchmarks. also fun fact i guess ceo compensation benchmarks We're paid quite well. we're paid quite well I certainly can't complain about $400,000 plus a year. i certainly can't complain about $400,000 plus a year We're underpaid versus the overall CEO market. we're underpaid versus the overall ceo market That's fine with us. that's fine with us We make our money off of the business and the stock growing, not off of our CEO compensation. we make our money off of the business and the stock growing not off of our ceo compensation The $400,000 is enough to keep my family happy, and then, in terms of long-term wealth creation, we're driving it through stock growth. the $400,000 is enough to keep my family happy and then in terms of long-term wealth creation we're driving it through stock growth All right. all right Looking at most recent results, talked about it, accelerating growth, 16%+ growth year-over-year. Also accelerating margins. We've gotten a lot of, I think, questions in the market about why are we not driving the margins higher, faster. The reality is we have. It's been a bit perplexing because we have, particularly over the past couple of years. You look, we have substantial increase in EBITDA margins, but we're never going to drive things in a straight line, very controlled way. We're long-term mindset. We're going to invest where we think there's opportunities. Driving not just growth in Q1, but also strong increase in earnings, 25%+ year-over-year in excess of the revenue growth, and incredible free cash flow in Q1, $45 million. FWRD segment, talked about it. Smaller portion of the business, but exciting opportunity there. Looking at most recent results, talked about it, accelerating growth, 16%+ growth year-over-year. looking at most recent results talked about it accelerating growth 16%+ growth year-over-year Also accelerating margins. also accelerating margins We've gotten a lot of, I think, questions in the market about why are we not driving the margins higher, faster. we've gotten a lot of i think questions in the market about why are we not driving the margins higher faster The reality is we have. the reality is we have It's been a bit perplexing because we have, particularly over the past couple of years. it's been a bit perplexing because we have particularly over the past couple of years You look, we have substantial increase in EBITDA margins, but we're never going to drive things in a straight line, very controlled way. you look we have substantial increase in ebitda margins but we're never going to drive things in a straight line very controlled way We're long-term mindset. we're long-term mindset We're going to invest where we think there's opportunities. we're going to invest where we think there's opportunities Driving not just growth in Q1, but also strong increase in earnings, 25%+ year-over-year in excess of the revenue growth, and incredible free cash flow in Q1, $45 million. driving not just growth in q1 but also strong increase in earnings 25%+ year-over-year in excess of the revenue growth and incredible free cash flow in q1 $45 million FWRD segment, talked about it. fwrd segment talked about it Smaller portion of the business, but exciting opportunity there. smaller portion of the business but exciting opportunity there There's billions of dollars, tens of billions of dollars of share available there. Those players are being disrupted and they're going away. FWRD is gaining from the disruption in the space. Really strong growth in FWRD in Q1, 17%+. Even stronger growth in gross profit, 36%+. Key growth drivers. We talked about the transformational drivers. Just the core, we still have incredible opportunity. Very small. Only around 3% penetrated in our target market. We're a $ billion+, we think we can be a $10 billion+ and more company. We're very early on in our journey. Certainly, there's $ tens of billions of share available from these legacy players. This chart here shows you us compared to some larger players like a Nordstrom, a Macy's, Ulta, Zalando. There's billions of dollars, t ens of billions of dollars of share available there. there's billions of dollars t ens of billions of dollars of share available there Those players are being disrupted and they're going away. those players are being disrupted and they're going away FWRD is gaining from the disruption in the space. fwrd is gaining from the disruption in the space Really strong growth in FWRD in Q1, 17%+. really strong growth in fwrd in q1 17%+ Even stronger growth in gross profit, 36%+. even stronger growth in gross profit 36%+ Key growth drivers. key growth drivers We talked about the transformational drivers. we talked about the transformational drivers Just the core, we still have incredible opportunity. just the core we still have incredible opportunity Very small. very small Only around 3% penetrated in our target market. only around 3% penetrated in our target market We're a $ billion+, we think we can be a $10 billion+ and more company. we're a $ billion+ we think we can be a $10 billion+ and more company We're very early on in our journey. we're very early on in our journey Certainly, there's $ tens of billions of share available from these legacy players. certainly there's $ tens of billions of share available from these legacy players This chart here shows you us compared to some larger players like a Nordstrom, a Macy's, Ulta, Zalando. this chart here shows you us compared to some larger players like a nordstrom a macy's ulta zalando Obviously Nordstrom, most comparable in terms of offering and price point, but you can see huge share opportunity available. We have a big opportunity to expand our product offering and wallet share. Historically, there were certain categories that we focused more in. We've had fairly broad coverage of a number of categories. Where we were strongest in was things like going-out dresses, categories where customers are living their best life. We want to get a lot more into the day-to-day of customers' lives. We know there's big opportunity areas like activewear, workwear, everyday wear basics that Revolve plays in. We have good stuff, but we're not necessarily customers' number one destination for that, and that's something that we're actively working on building and expanding. International. We've got a huge international opportunity. International has been outgrowing the U.S. for a number of quarters now, I think. Obviously Nordstrom, most comparable in terms of offering and price point, but you can see huge share opportunity available. obviously nordstrom most comparable in terms of offering and price point but you can see huge share opportunity available We have a big opportunity to expand our product offering and wallet share. we have a big opportunity to expand our product offering and wallet share Historically, there were certain categories that we focused more in. historically there were certain categories that we focused more in We've had fairly broad coverage of a number of categories. we've had fairly broad coverage of a number of categories Where we were strongest in was things like going-out dresses, categories where customers are living their best life. where we were strongest in was things like going-out dresses categories where customers are living their best life We want to get a lot more into the day-to-day of customers' lives. we want to get a lot more into the day-to-day of customers' lives We know there's big opportunity areas like activewear, workwear, everyday wear basics that Revolve plays in. we know there's big opportunity areas like activewear workwear everyday wear basics that revolve plays in We have good stuff, but we're not necessarily customers' number one destination for that, and that's something that we're actively working on building and expanding. we have good stuff but we're not necessarily customers' number one destination for that and that's something that we're actively working on building and expanding International. international We've got a huge international opportunity. we've got a huge international opportunity International has been outgrowing the U.S. for a number of quarters now, I think. international has been outgrowing the u.s for a number of quarters now i think I don't have the exact stat off the top of my head. Really strong growth, 20% plus growth. Very under-penetrated internationally. It's currently around 20% of the business. Long-term, it could be 40% plus, even larger. Outperforming, we have a number of initiatives there, exciting things. China, very under-tapped market, really focused there. Expand own brand, we talked about it, particularly with the Revolve label, new collaborations. Physical retail. Incredible opportunity. I'm out of time. Thank you so much. I don't have the exact stat off the top of my head. i don't have the exact stat off the top of my head Really strong growth, 20% plus growth. really strong growth 20% plus growth Very under-penetrated internationally. very under-penetrated internationally It's currently around 20% of the business. it's currently around 20% of the business Long-term, it could be 40% plus, even larger. long-term it could be 40% plus even larger Outperforming, we have a number of initiatives there, exciting things. outperforming we have a number of initiatives there exciting things China, very under-tapped market, really focused there. china very under-tapped market really focused there Expand own brand, we talked about it, particularly with the Revolve label, new collaborations. expand own brand we talked about it particularly with the revolve label new collaborations Physical retail. physical retail Incredible opportunity. incredible opportunity I'm out of time. i'm out of time Thank you so much. thank you so much

Speaker 1: Great, guys. Jenny A. Thank you. Great, guys. great guys Jenny A. jenny a Thank you. thank you