The Gloomy September?

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, The Gloomy September? Traders are bracing for the month of September. The reason is simple — it is easily the worst-performing month in history. The S&P 500’s 5-year average performance was a 4.2% decline for the month. (Source: Bloomberg) What’s more, this Friday will release August’s jobs report. It is important for two reasons. First, it might determine the size of the Federal Reserve’s interest rate cut. Second, it will offer clues on the health of the economy. Traders remain concerned that the economy might tip into a recession. So far, there are little signs of it. But things could change. The impact of a rate cut won’t be felt until many months later, so traders are worried that it might be too late if the economy begins to slow down. The upcoming presidential election will also play a big factor. - “I think the market is pretty well versed with what it thinks is going to happen — there will be some kind of cut,” said Fiona Boal, global head of equities at S&P Dow Jones Indices. - “As we move through autumn, we will see the VIX move more to thinking about the markets, thinking about political issues.” Fiona Boal, global head of equities at S&P Dow Jones Indices (Photo: Bloomberg) It wouldn’t be good news if the Federal Reserve chooses to cut rates by 50 basis-point (rather than 25 basis-point). The only reason why the Fed would do that is because they are worried about a major economic slowdown. Otherwise, a 25 basis-point cut is sensible for a healthy economy. This Data Driven Company Is Becoming The Amazon Of High Fashion Today’s Pick: Revolve Group, Inc. (RVLV) When you search for Revolve, you might be lulled into believing that it’s just another fad clothing store created by a wannabe entrepreneur using Shopify offering third-party brands. (Source: Revolve) Sure, their clothes look chic. But thousands of Shopify sellers offer look-alike clothes that flood online shopping sites. It also doesn’t help that fashion is a cutthroat industry with a razor-thin margin. So, what separates Revolve (which operates two online-only fashion sites) from other fashion retailers? One word: Data. And the company’s data-oriented approach provides insight into which trends to lean into and which trends have peaked. Revolve can also use this information to identify influencers and offer their brand partners better information. A profile by Vogue describes an organization that places heavy emphasis on data analytics: - “Revolve’s e-commerce and data analytics platforms are also proprietary. The company’s data analysts outnumber its fashion buyers two to one, informing everything from merchandising to the design decisions of its 21 in-house brands.” This data-driven culture -- which is unconventional in the fashion industry that relies on “artistic intuition” --  has translated into a solid 12% 5-year CAGR for its net sales. (Source: Revolve) It’s not just the top line -- the company is also becoming more profitable. Diluted EPS jumped by 110% YoY in the recent quarter. (Source: Revolve) The same Vogue piece noted: - “Of the top 10 brands on the site, eight are owned by Revolve and are generally indistinguishable from third-party brands. Together they account for nearly one-third of net sales.” A classic Amazon strategy. Amazon employs a similar strategy using data to inform the creation of their AmazonBasics products. What’s even better than growth? More growth stacked on top. And that’s exactly what the company achieved with their new high-end luxury site FWRD. This may be a classic S-curve. Essentially, growth ramps up exponentially before hitting a point of diminishing returns. Revolve didn’t wait that long. Co-founder and Co-CEO Michael Mente describes the initiative as a natural extension of their path to dominating the online fashion space: - “We are more excited than ever about the future of the Revolve and FORWARD brand and our ability to continue to capture consumer mind share and wallet share over the long term.” Revolve’s core website includes items predominantly in the $75-200 range. The new site FWRD features designer labels with most clothing starting at $1,000 and up. (Source: FWRD) FWRD was red-hot during the spending boom in 2021 and 2022. The growth has cooled, but it delivered a 16% 5-year CAGR vs. Q2’19. (Source: FWRD) Bottom line: Revolve Group Inc. is not running as hot as it was in 2021-22, but the stock looks poised to recover nicely once it goes through the economic cycle. The future of fashion is data. This company is at the forefront of the data revolution in the fashion industry. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](