RE:E-Commerce Q4 - case studyPS this was from Revolve Q4 CC
"Like many companies, we continue to face a host of challenges in the current environment and we have a lot of work to do. But in contrast to most fashion e-commerce peers, we have a profitable and cash generative business, proven financial discipline, and key competitive advantages that together enable us to confidently invest in the large opportunity ahead of us."
As I sad in the last post I think Revolve has great management. They have staying power with decent Q2 and Q3. Some of their E-commerce Only competitors are having trouble paying partners on time.
The companies Q4 highlight was a pop up physical store. Brick and mortar. The REVOLVE and FWRD Pop Up was prominently featured in Vogue’s ranking of the top five designer popups to visit this winter.
Fashion is high margin brand led. A brand with staggered leases, scale with practically no physical competitors can share their economies of scale with customers through exceptional new stores. An exceptional new store drives sales and new customer aquisition. Imagine if PENN revenues were currently $300 million and marketing was 10% that would be $30 million. Over 75% of sales are brick and mortar. $30 million is a lot to spend on a few new stores but its worth it. Every year.