Despite challenging macroeconomic headwinds, I bought more stock in RVLV. I have never sold any shares since I started buying in 2019.

Potential investors can come up with several reasons to not buy stocks. They are missing out on a massive opportunity here. Current share prices are undervalued. It does not reflect the massive growth in sales and customers.

Q2 2022:

“In Canada, net sales quadrupled in just the past 6 quarters.”

“For the trailing 12-month period, net sales per active customer were $488, an increase of 9% year-over-year. This data is quite encouraging, considering that new customer growth has been really healthy for the past several quarters, and that revenue per customer tends to increase significantly over time.”

“I’m especially encouraged by the increased engagement with our compelling video content on TikTok and Instagram reels. In the second quarter, new views of our Titan more than doubled sequentially compared to the first quarter of 2022 and nearly tripled year-over-year.”

Revolve isn’t an apparel company. That’s what Wall Street doesn’t get. They utilize trend-forecasting algorithms and social media marketing like no other clothing company.

High Profit-Margin Business: Think Lululemon. A rare e-commerce business that churns consistently free cash flow. They will continue operating while their competitors fall or get acquired.

Impressions: More people are viewing Revolve TikTok content today than when people were forced to stay in their homes during the pandemic. The amount of impressions Revolve makes on TikTok is creating long-lasting high-value customers. To reach a bigger audience, you go on TikTok or Instagram Reels. Legacy apparel companies are still utilizing traditional advertising.

A company like Louis Vuitton was founded in 1854. Think about how long it took for them to create a premium brand name. Revolve is making quick progress, unheard of for a new luxury fashion brand not based in New York, London, Milan, or Paris.

Share prices of Revolve will be significantly higher five years from now. I am buying and holding because the exponential growth is happening now. Exponential growth in net sales and customers will eventually translate to exponential growth for investors. Stomach the volatility now to reap the rewards in the future.