Clothing brand Revolve is exploring a new model that allows the company to charge customers for wearing its products, as well as its music and film properties.
Revolve chief executive officer Brian J. Johnson said that the new model will let Revolve earn revenue from apparel sales and movies.
The company will focus on fashion, clothing and accessories, he said in a call with analysts Tuesday.
The model will include two categories of apparel sales: apparel sales through Revolve’s online store, and through subscription services, which Revolve announced Tuesday.
In the future, the company will aim to “start to see an increase in apparel revenue that’s tied to movie ticket sales, and we think we’re going to see that,” Johnson said.
Revolve already has been selling apparel through its online store.
Johnson said that Revolve has made significant progress in its apparel business.
The clothing brand has more than doubled its sales per year since it launched in 2014.
Johnson noted that Revolving was able to grow its apparel sales at double the pace of its other businesses, and that its apparel revenue grew more than sevenfold over the same time period.
The company will also be able to tap into its film and music licensing business, Johnson said, by developing new music videos that it sells through its own channels.
In addition to licensing its clothing and movie properties, Revolve plans to make the apparel revenue “more of a revenue stream,” Johnson added.
“We’re really going to build a portfolio around our apparel.”
While Johnson emphasized the apparel business, he also hinted at a potential revenue stream for movies and music.
Revolving, for example, is exploring how it can monetize music that is licensed to Revolve.
Johnson added that the company plans to license music videos to other companies in the entertainment space.
In all, Johnson told analysts, Revolving expects to generate $4.6 billion to $5.6 million in revenue in the year 2020.
Revolves annual sales for the first quarter of 2020 were $6.3 million, down from $9.6 in the first half of 2019.
Revolutions revenue was $12.3 billion, down slightly from $14.4 billion in the third quarter of 2019, according to the company’s third-quarter results.
The clothing company’s other revenue streams, including its music streaming service, have also been expanding.
It has more subscribers than any other music streaming platform.
Its movies have grown, too, and it has seen more of its movies go to the big screen.
Johnson pointed out that Revolves revenue has also been growing faster than its other business.
It grew 6.5% to $6 billion in 2019, up from 6.1% in the second quarter of this year.
That’s up from 7.2% in 2020.
Revolving also announced plans to create a new business, called Revolve Music, to make music videos for movies.
He said that music videos will be made using its existing music-streaming platform, but that the videos will not be the same as the music in movies.