Revolve Group, Inc. (RVLV) and Lulu's Fashion Lounge Holdings, Inc. (LVLU) are two prominent players in the global online apparel retailing market, focused on Millennial and Generation Z consumers. RVLV offers women's apparel, footwear, accessories, and beauty styles under established and emerging brands and owned brands. It operates a platform that connects consumers and global fashion influencers. In comparison, LVLU provides women's clothing, shoes, and accessories. The company sells its products through owned media, earned media, and paid media.
Despite growing inflationary pressure and labor and supply chain issues, 2021 holiday retail sales grew 14.1% to $886.70 billion. Rising consumer spending is expected to drive the industry’s sales this year as well. With the continuation of the remote lifestyle, the online apparel retail industry should witness solid growth. Investors’ interest in this space is evident from the ProShares Online Retail ETF’s (ONLN) 8% gains over the past five trading days versus the SPDR S&P 500 Trust ETF’s (SPY) 3.8% returns.
