# RevolutionRace – Nature is our playground
**URL:** https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679
**Category:** Osakkeet
**Tags:** ulkomaiset-osakkeet, osakkeet
**Created:** [June 14, 2022, 8:08am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679 "2022-06-14T08:08:20Z")
**Posts on this page:** 20
**Page:** 4
### Author:  [@Frans-Mikael\_Rostedt](https://forum.inderes.com/u/Frans-Mikael_Rostedt)
#### Post date: [January 30, 2024, 12:51pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/62 "2024-01-30T12:51:57Z")
A few highlights from the webinar:
- Marketing competition was tough, especially in November (Black Friday), but growth for RVRC was stronger than in other quarters. This had a small negative impact on gross margins. They are being very careful with price increases, wanting to maintain the brand promise.
- The main reason behind the slowdown in RoW growth was the balancing act between growth and profitability. The UK and Netherlands continued as “good markets” and growth in the USA remained the strongest, but it is still small in size. Based on my gut feeling, I’d say the comments were slightly more cautious compared to before. Of course, if this growth rate can be maintained without sacrificing profitability, then the level is very good. + If the USA continues as the fastest grower, it will soon become a significant growth driver.
- Pants ~50% of sales, jackets ~25%, and new products launched after the IPO are around 15-20%. The Alpine launch has been about as successful as the footwear. The collection is, of course, clearly more cyclical.
- Inventory is now at a good level. In the future, it will likely grow in line with revenue growth.
- The balance between growth and profitability was emphasized several times. This is nice to hear from a shareholder’s perspective. Headcount decreased due to conservative replacement hiring.
Here are my relatively conservative forecasts after the results. DACH in particular could exceed expectations in terms of growth. In the Nordics, the market environment will almost certainly improve from current levels, which supports growth.
The valuation still looks challenging in the short term, but quite justified at this growth rate. I expect small upgrades in analyst forecasts. I need to mull over whether to trim slightly if the share price rise continues.
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### Author:  [@PeeJii](https://forum.inderes.com/u/PeeJii)
#### Post date: [January 30, 2024, 7:17pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/63 "2024-01-30T19:17:07Z")
I should listen to the interview tomorrow when I have more time. I’ve been following the company with interest, but I haven’t jumped on board yet (EDIT: I forgot, but I had a small tracking position in this earlier, which I got rid of because it was too small).
For me, the biggest question mark right now is perhaps the probability of succeeding in the USA (without profitability suffering).
Continued growth in the US would indeed be a great thing, but at the same time, it’s a fairly competitive market where marketing is almost certainly more expensive.
There are also plenty of big brands in the US in roughly the same price category (e.g., Columbia Sportswear, which I have very good experiences with regarding quality and which, at least, was cheaper in the US than the gear they sell in Europe). You only need to Google outdoor gear reviews to see there are many other similar brands.
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### Author:  [@artuzo](https://forum.inderes.com/u/artuzo)
#### Post date: [February 2, 2024, 8:21am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/64 "2024-02-02T08:21:42Z")
The Board of Directors has decided to repurchase own shares for a maximum of 200 MSEK.
Currently, holdings are 0% and the maximum ownership may now increase to 10%.
> **[the-board-of-directors-of-revolutionrace-has-resolved-to-exercise-its-authorisation-to-acquire-own-shares.pdf](https://storage.mfn.se/43d2f8b9-9335-43f3-b358-73567760f2b3/the-board-of-directors-of-revolutionrace-has-resolved-to-exercise-its-authorisation-to-acquire-own-shares.pdf)**
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### Author:  [@artuzo](https://forum.inderes.com/u/artuzo)
#### Post date: [May 7, 2024, 6:07am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/65 "2024-05-07T06:07:15Z")
[interim-report-q3-2023-24.pdf](https://forum.inderes.com/uploads/short-url/3PGMKb7z8GVtIKBn6DdOPLMDnPo.pdf) (1.6 MB)
Steady growth continues in RVRC’s Q3.
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### Author:  [@Tuulipuku](https://forum.inderes.com/u/Tuulipuku)
#### Post date: [May 7, 2024, 6:21pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/66 "2024-05-07T18:21:38Z")
We fell slightly short of forecasts regarding both profitability and sales, but it was a fairly decent quarter in a consumer market struggling with purchasing power pressures. Market shares were again gained significantly.
RR published financial targets for the next three fiscal years. They are targeting 20 percent annual growth and also a 20 percent EBIT margin. In the earnings call, the CEO justified the profitability target being lower than current levels by citing investments in marketing for the online stores in the Netherlands, the UK, the USA, and Poland. Similarly, new product launches are expected, for example, in the footwear selection.
Conference call
[https://www.inderes.se/videos/revolutionrace-audiocast-with-teleconference-q3-2024](https://www.inderes.se/videos/revolutionrace-audiocast-with-teleconference-q3-2024)
Financial targets
[https://www.inderes.fi/releases/revolutionrace-announces-new-financial-targets-continues-on-growth-journey-and-industry-leading-profitability-levels](https://www.inderes.fi/releases/revolutionrace-announces-new-financial-targets-continues-on-growth-journey-and-industry-leading-profitability-levels)
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### Author:  [@Tuulipuku](https://forum.inderes.com/u/Tuulipuku)
#### Post date: [June 14, 2024, 7:49am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/67 "2024-06-14T07:49:08Z")
RevolutionRace started its summer sales in the online store and perhaps also on the stock exchange. Anchor investor Altor sold a large number of shares as expected, and Niclas, the less prominent half of the company’s founding couple, is also leaving the board as previously announced.
> **[Altor har sålt aktier i RevolutionRace för 398 miljoner | Affärsvärlden](https://www.affarsvarlden.se/artikel/altor-har-salt-aktier-i-revolutionrace-for-398-miljoner)**
>
> Riskkapitalbolaget Altor har sålt 7,8 miljoner aktier i outdoor-klädbolaget RevolutionRace för 51 kronor styck genom en riktad placering.
> **[Niclas Nyrensten lämnar Revolution Races styrelse | Affärsvärlden](https://www.affarsvarlden.se/artikel/niclas-nyrensten-lamnar-revolution-races-styrelsen)**
>
> Outdoor-klädbolaget Revolution Races medgrundare Niclas Nyrensten har nu begärt utträde ur bolagets styrelse, vilket kommunicerades först i början av maj, framgår det av ett pressmeddelande.
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### Author:  [@anon25139457](https://forum.inderes.com/u/anon25139457)
#### Post date: [June 14, 2024, 8:35pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/68 "2024-06-14T20:35:53Z")
RevolutionRace is also mentioned in this article found on Sijoitustieto:
> **[Ostopaikka kuluttajatuoteyhtiöissä?](https://www.sijoitustieto.fi/sijoitusartikkelit/ostopaikka-kuluttajatuoteyhtioissa)**
>
> Sijoitustiedon uusi kolumnisti Pentti Jokinen käy läpi kuluttajatuoteyhtiöiden lähihistoriaa, nykytilaa ja lähitulevaisuutta. Kolme tärppiä mahdollisista ostopaikoista.
Personally, I find the company’s story intriguing, but unfortunately, I don’t think the product quality is all that great, and there is a contradiction in investing in a consumer goods company whose products you don’t believe in. So, I’ll wait for Halti’s stock market listing 😃
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### Author:  [@Pesola](https://forum.inderes.com/u/Pesola)
#### Post date: [July 3, 2024, 10:54am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/69 "2024-07-03T10:54:09Z")
This also caught my eye somewhere, and RVRC was the only company from the article that ended up in my shopping cart. Rarely do I find anything worth noting in these articles, but this was a growth company valued so modestly that I just had to pick some up. My own experience is that the quality is generally quite okay. Not top-of-the-line, but clearly good nonetheless. I hoarded some clothes from there during sales a few years ago. My wife is completely hooked on these clothes, and you see them a lot out on the streets as well. Above all, I let the track record, financial figures, and valuation speak for themselves when adding this to my portfolio. An exceptionally reasonably priced growth firm, and indeed, if consumer demand starts to recover, there’s room for a bit of a “rebound”. I suspect I might pick up a slightly larger slice of this for my rather (over)diversified portfolio. Over the years, I have “refined” it from value more towards growth.
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### Author:  [@Kivi](https://forum.inderes.com/u/Kivi)
#### Post date: [July 3, 2024, 11:24am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/70 "2024-07-03T11:24:51Z")
The share price is currently being weighed down by sales from major shareholders; both the founding couple (who no longer have board seats) and Altor are selling large positions as soon as the previous lock-up ends. Business at RVRC seems to be developing quite positively, even though some of the more ambitious targets were lowered after Q1. An interesting company, selling direct-to-consumer, and margins have remained high during growth. If they can maintain growth, the valuation is reasonably low.
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### Author:  [@Pesola](https://forum.inderes.com/u/Pesola)
#### Post date: [July 3, 2024, 12:16pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/71 "2024-07-03T12:16:25Z")
If they can maintain profitable growth, then I think this is already very cheap. It’s always a question mark whether growth and profitability will be sustained, and of course, we’re not talking about a massive company yet. P/E ratios for ’24 and ’25 seem to settle around the 13.x–15.x range, so I find this really cheap as long as growth and profitability don’t stall. ROE and ROA are quite decent, and it’s a debt-free company. In the US, you easily pay 2–3 times more for even slower growth… although we are talking about completely different types of companies anyway. But since I try to let the fundamentals and numbers lead, I just have to be part of the story. Since my forecasting skills are mediocre and I don’t have any major insider info, I have to reflect on this through the rearview mirror and my own experiences.
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### Author:  [@Tommi\_Saarinen](https://forum.inderes.com/u/Tommi_Saarinen)
#### Post date: [August 12, 2024, 12:31pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/72 "2024-08-12T12:31:28Z")
RevolutionRace will report its figures for the fiscal year ending in June tomorrow in its year-end report. The report will be published at 8:30, and the live webcast will begin at 11:00 (Finnish time).
Due to seasonality, Q4 is RVRC’s second smallest quarter in terms of revenue. The consensus forecast expects approximately 15% revenue growth and an operating margin of around 18% for Q4.
In connection with the previous earnings release in May, RVRC published its financial targets for the next three fiscal years.
Regarding revenue, the annual growth target is 20%. The consensus forecast for revenue growth in fiscal year 2025 is just over 16%.
The company lowered its profitability target, now aiming for a 20% operating margin (the target for the previous strategy period was 25%). The profitability target seemed to be lower than market expectations, as the company reached an operating margin of over 25% during the strong years of 2020–2022. The company justified the reduction in the profitability target by citing more aggressive growth pursuits in its early-stage market regions.
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### Author:  [@Tommi\_Saarinen](https://forum.inderes.com/u/Tommi_Saarinen)
#### Post date: [August 12, 2024, 12:45pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/73 "2024-08-12T12:45:27Z")
Hi @JuhaR,
Do you have personal experience with the company’s products? For me, a RevolutionRace fleece is part of my gear in an air-conditioned office building, and I’ve been relatively satisfied with the shoes as well.
The multifunctionality the company aims for with its outdoor gear is realized in my own daily life.
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### Author:  [@anon25139457](https://forum.inderes.com/u/anon25139457)
#### Post date: [August 12, 2024, 1:03pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/74 "2024-08-12T13:03:27Z")
@Tommi_Saarinen I’ve only bought one shell jacket, a shirt, and a belt from the company. So my experiences are with different products than yours.
The jacket was the Cyclone Rescue Jacket 2.0, which I got at a hefty discount, so I’m not bothered by it. But the MSRP was 189 euros, and for that price, there is definitely better selection available. In my opinion, for a shell jacket, it is extremely stiff and rustly, the cut is baggy, and the stench of the waterproofing agent is such that it doesn’t just disappear by airing it out. As a comparison, I could take Halti’s Nummi jacket (MSRP 239) from the same price range, which is a comfortably stretchy, light, and well-fitting jacket. It’s nice to head out for a walk in the forest in the Nummi jacket when heavy rain hits.
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### Author:  [@artuzo](https://forum.inderes.com/u/artuzo)
#### Post date: [August 13, 2024, 5:49am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/75 "2024-08-13T05:49:11Z")
RVRC:n viimeinen neljännes ja koko tilivuosi:
**Financial development & significant events during the fourth quarter (1 Apr – 30 Jun)**
- Net sales for the period increased by 13 percent and amounted to SEK 407 (362) million.
- Gross profit amounted to SEK 293 (269) million, corresponding to a gross margin of 71.9 (74.5) percent.
- EBIT amounted to SEK 74 (68) million, corresponding to an increase of 9 percent.
- EBIT margin amounted to 18.3 (18.9) percent.
- Earnings per share before dilution amounted to SEK 0.54 (0.48) and after dilution to SEK 0.53 (0.48).
**Financial development and significant events during the full year (1 Jul – 30 Jun)**
- Net sales for the period increased by 18 percent and amounted to SEK 1,840 (1,560) million.
- Gross profit amounted to SEK 1,312 (1,126) million, corresponding to a gross margin of 71.3 (72.2) percent.
- EBIT amounted to SEK 386 (310) million, corresponding to an increase of 24 percent.
- EBIT margin amounted to 20.9 (19.9) percent.
- Adjusted EBIT amounted to SEK 389 (322) million, corresponding to an increase of 21 percent.
- Adjusted EBIT margin amounted to 21.1 (20.6) percent.
- Earnings per share before dilution amounted to SEK 2.73 (2.15) and after dilution to SEK 2.72 (2.15).
- The Board proposes a dividend of 1.20 (0.86) SEK per share.
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### Author:  [@Tommi\_Saarinen](https://forum.inderes.com/u/Tommi_Saarinen)
#### Post date: [August 13, 2024, 6:36am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/76 "2024-08-13T06:36:41Z")
Q4 was therefore overall pretty much in line with the consensus forecast:
- Revenue growth missed the consensus forecast by 2 percentage points
- EBIT margin exceeded the consensus forecast by 1 percentage point
Regarding the ongoing Q1 quarter, the comments remained slightly soft. Growth has continued in July, ~~but in August and September, trading has been slower. According to the company, this is due to seasonality, but it’s unlikely that the seasonality differs from the comparison period.~~
In all other reported countries (Germany, Sweden, Others), revenue growth was double-digit in Q4, but sales in Finland contracted by 6%. 💩
Granted, Finland is the company’s most mature market area (highest market share).
**Edit:**
Q1 revenue is weighted towards August and September, so at this stage, the company was cautious in its comments. Still, the comment was subdued compared to the comparison period.
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### Author:  [@Sijoittaja-alokas](https://forum.inderes.com/u/Sijoittaja-alokas)
#### Post date: [August 15, 2024, 1:02pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/77 "2024-08-15T13:02:42Z")
**Arhi Kivilahti’s** thoughts on RevolutionRace can be found below:
[https://x.com/ArhiKivilahti/status/1823954078788923709](https://x.com/ArhiKivilahti/status/1823954078788923709)
Here is the link from the tweet as well:
[https://adainsights.com/blog/revolutionrace-grows-rapidly-on-all-markets-maintaining-high-profitability](https://adainsights.com/blog/revolutionrace-grows-rapidly-on-all-markets-maintaining-high-profitability)
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### Author:  [@Tyhjatasku](https://forum.inderes.com/u/Tyhjatasku)
#### Post date: [October 19, 2024, 3:39pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/78 "2024-10-19T15:39:01Z")
I’ve been considering RVRC for some time now. The company seems reasonably high-quality, though I don’t think there are clear moats around the business. However, looking at the company’s return on capital, it does have a competitive advantage. The cost level should be lower than other players since no middlemen are used and there is no need to pay rent for stores. An opportunity to offer good products at a lower price.
What thoughts do others have right now about the company’s operational performance and valuation?
In my opinion, the company has fallen somewhat off investors’ radars following the COVID hangover and sales by the major owners. Business is progressing while the valuation has dropped to at least moderate levels.
The company introduced shoes to its collection during the past year, which, according to the company, was a successful launch. Therefore, one could believe that the company has the potential to expand its product offering into even more new product categories.
Less surprisingly, the Finnish market has slowed down growth, although Finland represents quite small figures in absolute terms. Other markets are growing at a good pace.
The company’s CEO Paul Fischbein recently appeared on Kvalitetsaktiepodden.
[https://open.spotify.com/episode/2EkmyvSt8GhUhj4DHbkBN7?si=edf16210061241e0](https://open.spotify.com/episode/2EkmyvSt8GhUhj4DHbkBN7?si=edf16210061241e0)
I found it interesting that he stated directly that the company is not looking to make acquisitions in the immediate future, though they are, of course, keeping an eye on the market. Additionally, when asked if the company hedges currencies, the CEO essentially said that they have a 20% EBIT margin. They don’t need to use complicated hedges to succeed. A refreshing take, in my opinion!
However, the market’s pessimism toward the company is a concern. Does the market see that the company won’t meet its guidance, or is this still gloom following the major owners’ sales?
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### Author:  [@Tuulipuku](https://forum.inderes.com/u/Tuulipuku)
#### Post date: [November 5, 2024, 1:26pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/79 "2024-11-05T13:26:41Z")
The early autumn earnings report is out and it’s a major disappointment for the market. Growth was only five percent and, on the back of the weak growth, EBIT also fell short of targets. However, market share has continued to increase. Autumn sales have been weak across the entire market due to warm weather. Finland dragged the whole Nordic region into negative growth. October sales have been slightly more brisk, but this quarter will be decided by “Black Friday” and Christmas sales. We’re heading towards them with some trepidation.
It definitely stands up well to comparison with competitors, and the stock is reasonably priced. Germany grew by 8 percent and the rest of the world by 11 percent. This will turn out well, but slower growth may continue for a while.
> **[Corporate | RevolutionRace](https://corporate.revolutionrace.com/en/press-releases/continued-growth-for-revolutionrace-1/)**
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### Author:  [@artuzo](https://forum.inderes.com/u/artuzo)
#### Post date: [November 5, 2024, 3:31pm UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/80 "2024-11-05T15:31:08Z")
Interesting to follow the development now. Will the weakening growth continue, or was it just a temporary hiccup as suggested in the report?
I personally added a bit on the dip. For now, the company has my confidence in the future.
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### Author:  [@artuzo](https://forum.inderes.com/u/artuzo)
#### Post date: [January 30, 2025, 6:40am UTC](https://forum.inderes.com/t/revolutionrace-nature-is-our-playground/32679/81 "2025-01-30T06:40:30Z")
Growth continues and was now 11%, so it now looks like the previous quarter was just a small slip on the way up.
[interim-report-q2-2024-25.pdf](https://forum.inderes.com/uploads/short-url/8sILvRtgNw6LLefiiYenZpLB08D.pdf) (1.7 MB)
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