Revolve Group (NYSE:RVLV) Announces Earnings Results

Key Points

• Revolve Group exceeded quarterly expectations: EPS came in at $0.26 versus the $0.21 consensus, while revenue reached $347.4 million, up 12% year over year. Active customers surpassed 3 million, and July sales were approximately 18% higher than a year earlier.
• Profitability and growth initiatives strengthened: Gross margin improved to 56.6%, and adjusted EBITDA rose 17% to $27 million. New beauty and product launches showed strong early demand, while FWRD sales increased 11%.
• Management maintained its full-year revenue-growth and gross-margin outlook but expects higher marketing and G&A expenses amid continued investment and cost pressures. The company also repurchased nearly 500,000 shares, while maintaining a debt-free balance sheet with $312 million in cash.

Revolve Group (NYSE:RVLV - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.21 by $0.05, FiscalAI reports. The company had revenue of $347.41 million for the quarter, compared to the consensus estimate of $341.91 million. Revolve Group had a net margin of 5.05% and a return on equity of 12.17%.

Here are the key takeaways from Revolve Group's conference call:

• Strong growth momentum continued: Q2 net sales rose 12% year over year to $347 million, with double-digit growth across Revolve, FWRD, domestic and international operations. Active customers grew 11% to surpass 3 million, while July sales increased approximately 18% year over year.
• Gross margin improved to 56.6%, or roughly 90 basis points excluding a $5.6 million tariff-refund benefit, helped by AI- and data-driven markdown optimization. Adjusted EBITDA increased 17% to $27 million despite elevated investment in marketing, physical retail, owned brands and the Cardi B joint venture.
• Growth initiatives are showing encouraging early traction: Gro Good beauty products sold out rapidly, generated strong repeat purchasing and carry highly accretive margins; Revolve Los Angeles’ second product drop also posted stronger early sell-through. FWRD grew 11%, supported by handbags, pre-owned luxury and exclusive brand capsules.
• Management maintained its full-year 2026 revenue-growth objective and gross-margin outlook of 53.5% to 54%, but raised expected marketing spending to 15.8%-16% of sales and G&A to $170 million-$172 million as investments continue. Higher input, transportation and international logistics costs, along with a somewhat heavier inventory position and increased markdown pressure, remain headwinds.
• The company repurchased nearly 500,000 Class A shares for approximately $10 million in Q2, reducing shares outstanding by more than 1%, while retaining a debt-free balance sheet with $312 million in cash and generating $34 million of year-to-date free cash flow.

Revolve Group Stock Up 1.2%

RVLV traded up $0.32 on Tuesday, hitting $26.34. The company had a trading volume of 1,507,441 shares, compared to its average volume of 1,060,580. The business's fifty day simple moving average is $22.57 and its 200 day simple moving average is $23.83. Revolve Group has a 12-month low of $17.35 and a 12-month high of $31.68. The company has a market cap of $1.88 billion, a PE ratio of 29.59, a PEG ratio of 2.72 and a beta of 1.60.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on RVLV. Robert W. Baird set a $28.00 price objective on Revolve Group in a research report on Wednesday, May 6th. Piper Sandler decreased their target price on Revolve Group from $30.00 to $27.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 6th. Raymond James Financial set a $28.00 price target on Revolve Group in a research note on Wednesday, May 6th. Morgan Stanley set a $27.00 price target on Revolve Group in a report on Wednesday, May 6th. Finally, KeyCorp reduced their price objective on Revolve Group from $35.00 to $32.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 6th. Seven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $29.33.

Institutional Investors Weigh In On Revolve Group

Several institutional investors have recently modified their holdings of the stock. Panagora Asset Management Inc. lifted its holdings in Revolve Group by 2.0% during the fourth quarter. Panagora Asset Management Inc. now owns 20,284 shares of the company's stock worth $612,000 after buying an additional 404 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Revolve Group by 4.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,773 shares of the company's stock valued at $489,000 after acquiring an additional 964 shares during the period. Alliancebernstein L.P. raised its position in shares of Revolve Group by 2.7% in the 3rd quarter. Alliancebernstein L.P. now owns 38,600 shares of the company's stock worth $822,000 after acquiring an additional 1,000 shares in the last quarter. Man Group plc raised its position in shares of Revolve Group by 0.6% in the 4th quarter. Man Group plc now owns 167,677 shares of the company's stock worth $5,062,000 after acquiring an additional 1,064 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its stake in shares of Revolve Group by 6.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 18,894 shares of the company's stock worth $379,000 after purchasing an additional 1,113 shares during the last quarter. 67.60% of the stock is owned by institutional investors.

About Revolve Group

Revolve Group, Inc operates as a leading online fashion retailer primarily serving millennial and Gen Z consumers through its flagship e-commerce platform. The company offers a curated assortment of apparel, accessories and beauty products from more than 500 established and emerging brands, alongside private label labels covering contemporary and premium segments. With a focus on trend-driven merchandise and seamless user experience, the website features shoppable editorial content and digital styling advice aimed at strengthening customer engagement and brand loyalty.

Founded in 2003 and headquartered in Cerritos, California, Revolve has expanded its footprint beyond North America by launching localized sites and logistics centers in Europe and the Middle East.

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