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Michael Karanikolas, Co-Chief Executive Officer of Revolve Group , Inc. (NYSE:RVLV), recently sold shares of the company’s Class A common stock. The transaction, which took place on March 3, involved the sale of 12,566 shares at a weighted-average price of $25.94, amounting to a total of $325,962. The sale comes as the stock has experienced significant volatility, with InvestingPro data showing a -9.67% decline over the past week, though the company maintains strong fundamentals with a healthy balance sheet and current ratio of 2.86x.
This sale was conducted under a pre-established Rule 10b5-1 trading plan by MMMK Development, Inc., a company where Karanikolas holds a stake and shares voting and dispositive power. Following this transaction, Karanikolas, through MMMK Development, Inc., now holds no shares directly under this entity. According to InvestingPro’s comprehensive analysis, which includes 13 additional key insights available to subscribers, the company currently trades at a P/E ratio of 34.6x and shows promising profitability metrics with a gross margin of 52.5%.
In addition to this sale, Karanikolas converted 12,566 shares of Class B common stock into an equal number of Class A common stock shares. This conversion occurred automatically upon the sale of the Class B shares, as these shares are convertible at any time at the holder’s discretion. After this transaction, Karanikolas retains 123,000 shares of Class A common stock under direct ownership in the company, which currently has a market capitalization of $1.73 billion and holds more cash than debt on its balance sheet.
In other recent news, Revolve Group reported its fourth-quarter 2024 financial results, surpassing expectations with an earnings per share of $0.17, compared to the forecasted $0.10. The company’s revenue reached $294 million, exceeding the anticipated $282.67 million, marking a 14% year-over-year increase. Despite these strong earnings and revenue figures, the company’s stock experienced a decline in aftermarket trading, possibly due to broader market conditions. Revolve’s growth was driven by expanded product categories and AI innovations, with international sales also seeing a 14% increase year-over-year. The company achieved a net income of $12 million, more than tripling from the previous year, and reported an adjusted EBITDA of $18 million, up 114% year-over-year. Revolve’s cash and cash equivalents rose by 5% to $257 million, with no debt on its balance sheet. Looking ahead, the company provided guidance for a gross margin of 52.4-52.9% for 2025 and plans to continue investing in AI and its own brands. Analyst firms noted the company’s strong performance and strategic focus on profitability and efficiency improvements.
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