Revolve Group Inc (NYSE:RVLV) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 04:30 pm ET
Good afternoon, and welcome to Revolve Group's Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
At this time, I would like to turn the conference over to Erik Randerson, Vice President of Investor Relations at Revolve. Thank you, you may begin.
Good afternoon, everyone, and thanks for joining us to discuss Revolve's Third Quarter 2019 Results. Before we begin, I'd like to mention that we have posted a Presentation containing Q3 financial highlights to our Investor Relations website located at investors.revolve.com.
I would also like to remind you that this conference call will include forward-looking statements. These statements include our expectations regarding financial results and guidance, market opportunities, our growth and increased efficiencies, our owned brand mix, our inventory position, our dilutive share count, our investments in customer experiences and fulfillment centers, the impact of tariffs and our tariff mitigation efforts, and our lower price point offerings. These statements, which are subject to various risks, uncertainties and assumptions could cause our actual results to differ materially from these statements.
These risks, uncertainties and assumptions are detailed in this afternoon's press release as well as our filings with the SEC, including our registration statement on Form S-1 that was filed with the SEC, our Form 10-Q for the second quarter of 2019 that was filed with the SEC on August 12th of 2019 and the Form 10-Q for the third quarter of 2019 that will be filed, all of which can be found on our website at investors.revolve.com. We undertake no obligation to revise or update any forward-looking statements or information, except as required by law.
During our call today, we will also reference certain non-GAAP financial information, including adjusted EBITDA, free cash flow, and adjusted diluted EPS. We use non-GAAP measures in some of our financial discussions, as we believe they more accurately represent the true operational performance and underlying results of the business. The presentation of non-GAAP financial information is not intended to be considered on isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.
Reconciliations of GAAP to non-GAAP measures, as well as the description, limitations and rationale for using each measure can be found in this afternoon's press release and in our SEC filings.
Joining me on the call today are our co-founders and co-CEO's Mike Karanikolas; and Michael Mente, as well as Jesse Timmermans, our CFO. Following our prepared remarks, we'll open the call for your questions.
With that, I'll turn the call over to Mike.
Thanks, Erik. Good afternoon, everyone. Thanks for joining us on our third quarter earnings call. We had another very solid quarter in Q3, delivering growth in net sales, profitability and free cash flow to achieve record results in any third quarter.
Net sales increased to 22% with REVOLVE business continuing to be the primary driver of growth, delivering a year-over-year increase in net sales of 24%. We