In the weeks leading up to the initial public offering of apparel retailer Revolve Group, in June 2019, investors struggled to come up with a fair valuation. Several recent IPOs—most notably those of the ride-hailing firms Uber and Lyft—had been disappointing. Revolve had delayed its IPO for months because of a downturn in the stock market. Despite the headwinds, its IPO was priced at $1.2 billion—and it exploded by an additional 89% on its first day of trading, making it one of the best first-day IPO performances of 2019. The spike brought the company’s valuation to roughly 4.5 times its revenue over the previous 12 months—five times the multiple of its apparel-retailing peers and more akin to that of a technology company. What happened, and why did investors originally fail to see just how strong a firm Revolve was?