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Why Revolve Group Stock Popped Today

By Jeremy Bowman – Sep 1, 2021 at 2:25PM

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News that Kendall Jenner would be joining the company got investors excited.

What happened

Shares of Revolve Group (RVLV -1.57%) were taking off today after the influencer-based online fashion company announced that it had named Kendall Jenner as creative director for Forward (FWRD), its luxury segment.

As of 1:36 p.m. EDT, the stock was up 9.3% on the news.

The management team at Revolve Group dressed in white.

Image source: Revolve Group.

So what

Jenner, the world's highest-paid model and a member of the Kardashian family, has one of the biggest audiences on social media with 186 million followers on Instagram, so a partnership between her and Revolve is a natural fit. Revolve's business model leans on influencers on Instagram and other social media platforms to promote the brand and its wares. 

According to the press release, Jenner will be in charge of a range of responsibilities, including the look and feel of the site, curation of brands, editing must-have trends, and other such projects that will shape the FWRD brand. She will begin her new role this month at New York's Fashion Week.

Co-CEO Michael Mente said: "Kendall as the creative director for FWRD is the perfect choice as we continue to invest in the next generation luxury consumer. We have always had an extreme admiration for Kendall's style, creativity, and overall exquisite taste."

Jenner said: "I grew up loving fashion and have been incredibly fortunate to work with some of the most brilliant people in this business. As FWRD's creative director, I am excited to help curate the site's offering with emerging designers and brands."

Now what

Jenner's hiring won't have any immediate impact on Revolve's financial performance, but her working with the company will undoubtedly help lift brand awareness and could open new channels with fashion brands as well.

We'll likely hear more about the partnership over the coming months as it evolves.

Jeremy Bowman owns shares of Revolve Group Inc. The Motley Fool owns shares of and recommends Revolve Group Inc. The Motley Fool has a disclosure policy.

Stocks Mentioned

Revolve Group Stock Quote
Revolve Group
$28.24 (-1.57%) $0.45

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