Revolve Group (NYSE:RVLV) Releases Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Revolve Group beat Q1 expectations with EPS $0.20 vs. $0.18 and revenue of $342.9M (up 15.6% YoY), while generating strong cash flow (operating cash flow $49M and cash balance $336M).
• Growth momentum is being driven by strategic initiatives and channel strength — launches like Revolve Los Angeles and the sold‑out Grow‑Good Beauty with Cardi B, plus international net sales up 20% and FWRD net sales up 17%.
• Management flagged near‑term margin pressure from higher input/freight costs, elevated marketing (15.8% of sales) and performance‑based G&A, and said tariff refund timing is uncertain and not included in current guidance.

Revolve Group (NYSE:RVLV - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.20 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.02, FiscalAI reports. Revolve Group had a return on equity of 12.12% and a net margin of 5.03%.The business had revenue of $342.88 million for the quarter, compared to the consensus estimate of $328.84 million. During the same quarter in the previous year, the company posted $0.16 earnings per share. Revolve Group's revenue for the quarter was up 15.6% compared to the same quarter last year.

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

• Company reported strong Q1 results with net sales up 16% to $343M, diluted EPS up 25% to $0.20, and robust cash generation (operating cash flow of $49M and cash balance of $336M at quarter end).
• Management highlighted major strategic initiatives driving momentum, including the launch of the new Revolve Los Angeles label, the sold‑out Grow‑Good Beauty launch with Cardi B, and high‑profile brand events like Revolve Festival to boost awareness.
• International and luxury channels showed strength — international net sales +20% (13th straight quarter outpacing U.S.) and FWRD net sales +17% with notable gross‑profit expansion, while Mexico new customers rose >80%.
• Company flagged margin and cost headwinds — while consolidated gross margin improved, the Revolve segment saw a slight margin decline and management cited higher input costs (freight and petroleum‑based materials), increased marketing (15.8% of sales) and higher performance‑based G&A that pressure near‑term profitability.
• Management has filed tariff refund claims (process started April 20) but recovery timing is uncertain and any refunds are not included in current guidance, so potential benefit is presently treated as incremental.

Revolve Group Trading Down 0.1%

NYSE RVLV traded down $0.01 on Tuesday, reaching $23.45. The stock had a trading volume of 1,763,124 shares, compared to its average volume of 893,815. The business has a 50 day moving average price of $24.34 and a 200 day moving average price of $25.57. Revolve Group has a 1 year low of $16.80 and a 1 year high of $31.68. The company has a market capitalization of $1.67 billion, a price-to-earnings ratio of 27.59, a P/E/G ratio of 2.35 and a beta of 1.76.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. TD Cowen reiterated a "buy" rating on shares of Revolve Group in a report on Wednesday, February 25th. Morgan Stanley set a $28.00 price target on Revolve Group in a report on Wednesday, February 25th. Wall Street Zen upgraded Revolve Group from a "hold" rating to a "buy" rating in a report on Sunday, April 19th. Zacks Research downgraded Revolve Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, February 26th. Finally, KeyCorp reiterated an "overweight" rating on shares of Revolve Group in a report on Wednesday, February 25th. Eight research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $29.50.

Insider Transactions at Revolve Group

In other Revolve Group news, CEO Michael Karanikolas sold 1,948 shares of the business's stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $25.93, for a total value of $50,511.64. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Michael Mente sold 60,923 shares of the business's stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $26.43, for a total value of $1,610,194.89. The SEC filing for this sale provides additional information. Insiders sold 152,806 shares of company stock worth $4,014,390 in the last 90 days. Corporate insiders own 42.67% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Fuller & Thaler Asset Management Inc. purchased a new position in Revolve Group in the fourth quarter valued at about $59,421,000. Balyasny Asset Management L.P. lifted its position in shares of Revolve Group by 55.7% in the fourth quarter. Balyasny Asset Management L.P. now owns 1,862,955 shares of the company's stock worth $56,243,000 after buying an additional 666,784 shares during the last quarter. Marshall Wace LLP lifted its position in shares of Revolve Group by 44.4% in the fourth quarter. Marshall Wace LLP now owns 1,489,581 shares of the company's stock worth $44,970,000 after buying an additional 458,287 shares during the last quarter. State Street Corp lifted its position in shares of Revolve Group by 9.5% in the fourth quarter. State Street Corp now owns 1,151,712 shares of the company's stock worth $34,770,000 after buying an additional 100,285 shares during the last quarter. Finally, Cooper Creek Partners Management LLC acquired a new stake in shares of Revolve Group in the third quarter worth about $22,164,000. Hedge funds and other institutional investors own 67.60% of the company's stock.

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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