Revolve Group (RVLV) PT Raised to $25 at Needham

Needham analyst Anna Andreeva raised the price target on Revolve Group (NYSE: RVLV) to $25.00 (from $23.00) while maintaining a Buy rating.

The analyst comments "1Q24 revenues came in slightly below the Street (REVOLVE above, FRWD below), GM was up nicely on strength at REVOLVE, and company saw better efficiencies in logistics (first quarter of leverage in Selling & Distro since 1Q21). After March bouncing back to positive, QTD is trending up LSD (continuation of momentum at REVOLVE; by category, Dresses, 1/3 of the mix, are seeing the biggest inflection); monthly compares in May/June are about similar, which should bode well for positive 2Q24. We calculate return rate up 200 bps y/y--company is seeing green shoots with recent tests to drive lower returns (better size guidance, shortening the exchange/return windows), which should begin to scale as the year unfolds (each 1% change in return rate = 30-50 bps in Selling & Distro and Fulfillment leverage annually)."

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