Revolve Earnings: Near-Term Prospects Bleak but Shares Offer Attractive Upside for Patient Investors

No-moat Revolve showcased solid fiscal 2023 fourth-quarter marks, with $258 million in revenue and $0.05 in EPS outpacing our respective $242 million and $0.04 estimates before the earnings call. As we balance better-than-expected quarterly results, time value, and our tempered near-term forecasts (and given that we anticipate macro pressures will stretch further through 2024, with just 2% full-year sales growth and 3.1% operating margin), we don't expect any meaningful change to our $29 fair value estimate.