Online fashion retailer Revolve Group Inc. sold nearly 12 million shares on its first day of trading on the New York Stock Exchange, raising nearly $212 million.
Shares of Revolve (NYSE: RVLV) opened at $18 Thursday evening and closed at above $34 at the end of the trading day Friday. The offering was led by Morgan Stanley, Credit Suisse Group AG and Bank of America Corp., per Business of Fashion.
It was the third-best debut for a company on the exchange this year, topped only by meat-substitute company Beyond Meat with a $277 million initial public offering and biotechnology company Cortexyme Inc. at $75 million, per Bloomberg.
The company markets its clothing primarily to millennial and Gen Z women using a network of more than 3,500 social media influencers and at events including a large annual party at the Coachella music festival, per BoF.
In its prospectus, Resolve said it caters to “aspirational consumers” and founded the company on a belief that “traditional retail was either too mass or too limited, struggled to consistently provide on-trend merchandise, and was failing to connect with younger consumers.”
The company earned $31 million on sales of $499 million in 2018, up from net income of $5.3 million on sales of almost $400 million in 2017.
Revolve Inc. was founded in Los Angeles in 2003 by Michael Mente and Mike Karanikolas, who convinced designer denim and high-end fashion brands to let them sell their products online. They were one of the first fashion companies to effectively harness the power of social media marketing, Business Insiderreported.
Revolve has more than 3 million followers on Instagram, and its influencers include Kendall Jenner (112 million followers) and model, actress and former Miss USA Olivia Culpo (4.1 million followers).