“Jenner’s multifaceted experience in the fashion industry and the vision she has outlined for the FWRD business has the potential to transform our business and the luxury business as a whole.”

Michael Mente — Co-Chief Executive Officer and Director of Revolve Group from Q2 2021 Earnings Call

“Kendall is the epitome of luxury fashion, and there isn’t a better fit for this position. The world looks at Kendall to lead the industry, and we are beyond excited to have her vision for FWRD come to life.”

Raissa Gerona, Chief Brand Officer of Revolve Group

Kendall Jenner Turns Creative Director of FWRD in Her Latest Fashion Move

Forward, the premier luxury e-retailer owned by Revolve Group named Kendall Jenner its new Creative Director. This is a brilliant move that increases the intrinsic value of Forward and its parent-company Revolve Group.

You can already get Kendall’s signature look and favorites here.

Revolve group is a powerful data analytics company disguised as an e-fashion retailer. Think a mixture of Amazon and Pinterest. Bringing on Jenner was based as much on data analytics as personality. An influencer for Revolve and Forward needs to showcase its brands and products in a way that depicts a lifestyle of aspiration and luxury. It is a perfect marriage because both Jenner and Revolve Group have roots in the So-Cal lifestyle.

FWRD is one of the hottest growing brands right now. Michael Mente during Revolve’s Q2 earnings on FWRD:

“While momentum has been building at FORWARD for some time, the second quarter was a breakout moment. Net sales increased 151% year-over-year and increased 122% on a two-year growth basis compared to the second quarter of 2019. FORWARD also delivered record gross margins in the second quarter. The strong results underscore FORWARD’s differentiated position in the market as a preferred destination for the next-generation consumers seeking curated luxury offerings.“

The average order value for Revolve is $255. The average order value within Forward is much higher, over $500. I am unsure what Jenner is being paid, but she is worth every penny. Revolve has a very specific strategy that includes:

• Optimization of the inventory process
• Data-driven performance marketing
• Produce on-trend products quickly (trend-forecasting algorithms)
• A prominent player in Influencer marketing blending macro/micro-influencers with different strategies.
• Develop unqiue brands, which have extremely high margins.

There is tremendous momentum with the FWRD Brand. There is a lot of excitement all around with the companies growth trajectory as a whole. Jenner who is a super-Influencer, will accelerate the companies growth and likely provide a boost towards FWRD’s gross profits. She comes from America’s version of the Royal Family. Among the 10 highest-earning stars on Instagram, her family makes up 30% of the top ten list. Jenner earns $1.05 million per post.

Jenner can move products and create brand power with just one click on the Gram. My conviction for RVLV is high and I am looking forward to the next few earnings reports. I will remain patient and expect big returns.

Lululemon (NASDAQ: LULU) was the one that got away. I have no idea why I never bought the stock. LULU is a company that sells yoga pants/sweat pants and consumers buy them without hesitation for over $100. Believe it or not, the stock price was once less than the price of these pants. Adding injury to insult, I own a few pairs of ABC pants. Wearing these pants feels like wearing sweats, but they have the look of high-end pants.

LULU is a stay-at-home stock and recovery stock. Who would have known it would be acceptable to work Yoga and stretchy pants to work? There is a lot to like about the company’s growth moving forward. Their most recent earnings report was nothing short of spectacular. With great margins and the acquisition of Mirror, the sky’s the limit.

Oatly (NASDAQ: OTLY) is a stock I have strongly considered buying. Sales are up 131% and I drink Oatly regularly. Demand for oat milk is increasing and they have an exclusive partnership with Starbucks. The problem with OTLY is obvious, they are dependent on oats. If the product falls out of favor, the stock will likely suffer. The cost of a 64 oz. carton of Oatly is $4.99 These margins aren’t great and milk is significantly cheaper.

My other concerns with OTLY are depending on your needs and preferences, oat milk is not necessarily healthier for you than regular milk. If oat milk does gain significant market share from dairy, they have significant competition among almond, soy, rice, and cashew milk. Assume even if oat milk is healthier for you than milk, they have to compete with all the other non-dairy milk products. Also is there a consensus in the vegan community that oat milk is the best among all these choices? Margins, long-term demand for the product, and fierce competition in the space are all question marks for me. There is nothing about oat milk I have a high conviction on. Just like a seltzer slowdown, I could potentially see an oats slowdown, especially if dairy can make a comeback.

I will pass on the stock as the company is not profitable yet. To justify a high price, they will need to sustain tremendous growth rates, which I am unsure they can do consistently. Perhaps OTLY becomes a profitable company, there are just too many unknowns n the future for me to invest in. I see better opportunities elsewhere in the market.