Investors greeted Revolve Group as a retail savior when the influencer-savvy company went public in June. On Friday it was, What have you done for me lately?
But cofounders and co-chief executive officers Michael Mente and Mike Karanikolas took the turnaround in stride and maintained that even though they’re now under the microscope of Wall Street, they’re not changing the approach that they’ve spent 16 years honing. (It doesn’t hurt that they are firmly in corporate control, holding 67 percent of the company’s voting rights).
“In terms of how we operate the business, not much has changed at all,” Mente said in an interview with his co-ceo. “Other than the fun, check the score every now and then…our life is very much the same.”
Late Thursday, the company reported second-quarter net losses to common stockholders of $28.1 million — reflecting $40.8 million spent to repurchase stock in conjunction with the initial public offering. Without the repurchase, profits rose as sales increased 22.8 percent to $161.9 million. But investors — perhaps spooked by the bottom line or just hoping for more — sent Revolve shares down 15.6 percent to $26.12.
“The stock heated up a little bit,” Karanikolas said. “It’s hard to say what happened,
Mike and Michael: The Revolve Party Guys Get Down to Business
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