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US fashion e-tailer Revolve raises $212 mn in IPO

11
Jun '19

Pic: Revolve

US-based online fashion retailer Revolve Group raised $212 million in its initial public offering (IPO) last week. It sold 11.8 million shares on June 6 for $18 each, after marketing them for $16 to $18 a piece, the company said in a statement. It plans to use the proceeds to buy back stock from existing stakeholders and to continue growing the company.

Only a quarter of the Class A shares issued in the IPO were sold by the company, according to the filing. The remaining $8.8 million shares were sold by current investors.

The Cerritos, California-based company is valued in the IPO at more than $1.23 billion based on the outstanding shares listed in its filings, which show it earned $31 million on sales of $499 million last year, up from net income of $5.3 million on sales of almost $400 million in 2017, according to a news agency report.

Sales for the quarter ended March 31 rose 21 per cent to $137 million, while net income fell 7.8 per cent to $5 million.

Revolve targets millennial customers and its Instagram account has more than 5.5 million followers.

Eighteen per cent of the company’s sales came from outside the United States last year. Revolve feels global expansion will likely require fulfilment centres along with other expenditures and its manufacturing operations in China could be affected by the political and economic climate there and tariffs imposed by the US Government. (DS)

Fibre2Fashion News Desk – India