Mary Sport

Mary Sport asked about the health of Revolve's consumer, particularly in the Revolve segment, and any trends observed by income cohorts, referencing potential softness at the low end in the previous quarter.

Answer

CFO Jesse Timmermans stated that there was nothing significant to call out regarding consumer health, noting that any softness at the low end likely lightened up in Q4 2025, given the strong sales results. He highlighted the strong performance of the high-end consumer on the FWRD side of the business due to increased emphasis there.

Mary Sport asked about the health of Revolve's consumer, particularly within the REVOLVE segment, and any trends observed by income cohorts. She specifically inquired if the softness at the low end, mentioned in the previous quarter, had persisted into Q4 2025.

Answer

CFO Jesse Timmermans stated that there was nothing significant to call out regarding consumer health, suggesting that any softness at the low end likely lightened up in Q4, given the strong sales results. He highlighted the strong performance of the FWRD business and its high-end consumer, which has been a focus.

Mary Sport inquired about the performance of new stores, particularly those in bankruptcy locations, and an update on the soft opening strategy for these stores, asking if it would continue.

Answer

Robert Helm (EVP and CFO) reported that new store performance has been extremely strong, with 85% beating plan. He noted that the soft opening approach, first used with 99 Cents Only Stores, has flattened the historical "reverse waterfall" (second-year comp decline), leading to much flatter comps in years two, three, and four.

Mary Sport asked for an update on the performance of Ollie's new stores, particularly if they are still exceeding expectations, including those in bankruptcy locations. She also sought an update on the soft opening strategy versus grand openings, especially for bankruptcy-acquired stores, and whether this approach will continue.

Answer

EVP and CFO Robert Helm reported that new store performance has been extremely strong, with approximately 85% of new stores opened this year beating their plan. He noted that the 'reverse waterfall' trend (a typical second-year comp decline) has flattened significantly for the 99 Cents Only stores that utilized the soft opening approach in Fall 2024, suggesting a flatter comp trend for years three and four as well.