Geographic or market replication just started working outside the home base

Revolve Group, Inc. (RVLV) — this company's answers

The model's full reasoning — Q3 2023 call → NOWe need to answer YES or NO based on the transcript. The question asks: does management describe that a business already proven in the company's ORIGINAL market, territory, or setting has RECENTLY begun producing REAL RESULTS IN NEW TERRITORY — additional regions, countries, markets, or settings the company has recently entered — with management presenting the away-from-home results as early evidence that the proven model travels, while the new territories remain a small share of the company today? We need to check the transcript for evidence of this pattern. The company is Revolve, an online fashion retailer. They have international operations. In the transcript, they mention international sales decreased 1% year-over-year, with exceptional growth in Mexico offset by declines in Australia and China. They also mention a successful activation in Mexico, triple digit growth in new customers there. They also mention plans for events in international regions. But is this about a proven model replicating in new territories? The company's original market is the US. They have international sales. They mention Mexico as a standout. However, the question asks about "recently begun producing REAL RESULTS IN NEW TERRITORY" with management presenting away results as early evidence that the proven model travels. In the transcript, they talk about Mexico's exceptional growth, but they also mention that international overall was down 1% due to declines elsewhere. They also mention that they are planning events in international regions. But is this a coherent pattern? Let's look for specific statements. Mike Karanikolas: "Net sales in the US decreased 5% year-over-year and net sales in international markets decreased 1% year-over-year. The relative outperformance in international was driven by exceptional growth in Mexico that was offset by declining sales in Australia and China, two regions impacted by economic challenges and currency headwinds." So Mexico is a bright spot, but not necessarily a new territory? Mexico might be a market they've been in for a while. The question asks about "recently entered" territories. They mention "international region where we see a great deal of opportunity for future growth" for a Q4 event. They also mention "successful activation in Mexico" and "triple digit growth in new customers" there.

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