Revolve Group (NYSE:RVLV) Posts Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Revolve Group (NYSE:RVLV) issued its quarterly earnings data on Tuesday. The company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02), Zacks reports. The company had revenue of $355.96 million for the quarter, compared to analyst estimates of $345.49 million. Revolve Group had a return on equity of 13.38% and a net margin of 5.54%.

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

• Strong top-line momentum: Third-quarter net sales rose 20% year over year to $356 million, with REVOLVE and FWRD, domestic and international markets all growing at least 20%. Active customers increased 18%, supported by record new-customer acquisition and stronger engagement from existing customers.
• Improving operating fundamentals: The return rate declined by more than two percentage points year over year, aided by category diversification and targeted initiatives. International sales grew 22% for the 15th consecutive quarter of outperformance versus the U.S., while mobile-app customers continued to show higher engagement and value.
• Profitability remains pressured during the investment year: Gross margin fell 75 basis points to 53.9%, and adjusted EBITDA declined 7% to $23.5 million as the company increased marketing and G&A spending. Higher fuel surcharges, freight costs and lower average order value are expected to weigh on fourth-quarter margins, with full-year selling and distribution expense guidance raised to 17.5% of sales.
• Growth initiatives are gaining traction: The Aventura store opened ahead of schedule and under budget, omnichannel customers spend nearly three times as much as single-channel customers, and the Cardi B-backed Grow-Good business is scaling profitably. Management also highlighted significant brand-building opportunities through REVOLVE Los Angeles, the Donatella Versace joint venture and AI-enabled shopping and store tools.
• Management expects margin recovery in 2027: Executives believe marketing and G&A investments made in 2026 can be leveraged as the company returns toward historical spending levels. They reiterated a long-term goal of double-digit EBITDA margins, supported by increasing owned-brand penetration, physical retail expansion and operating leverage.

Revolve Group Stock Down 1.2%

Revolve Group stock traded down $0.27 during trading hours on Tuesday, hitting $21.73. The stock had a trading volume of 1,441,735 shares, compared to its average volume of 986,961. The stock has a market cap of $1.54 billion, a price-to-earnings ratio of 21.52, a P/E/G ratio of 2.84 and a beta of 1.70. The business’s 50 day simple moving average is $21.73 and its 200-day simple moving average is $23.34. Revolve Group has a one year low of $17.35 and a one year high of $31.68.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on RVLV shares. Raymond James Financial reduced their price target on Revolve Group from $28.00 to $25.00 and set an “outperform” rating for the company in a research report on Friday, October 16th. Piper Sandler raised their price objective on Revolve Group from $27.00 to $30.00 and gave the company an “overweight” rating in a research report on Wednesday, August 5th. TD Cowen started coverage on shares of Revolve Group in a research note on Friday. They issued a “strong-buy” rating on the stock. Roth Capital reissued a “buy” rating and set a $37.00 target price on shares of Revolve Group in a report on Wednesday, August 5th. Finally, BTIG Research reaffirmed a “buy” rating and issued a $35.00 price objective on shares of Revolve Group in a report on Wednesday, October 28th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $29.69.

About Revolve Group

Revolve Group, Inc operates a digital commerce platform focused on fashion and lifestyle products. Through its REVOLVE and FWRD platforms, the company offers women’s and men’s apparel, footwear, accessories, beauty products and other lifestyle merchandise from established and emerging brands. Its portfolio also includes proprietary and exclusive brands, including superdown and Song of Style.

The company primarily reaches customers through its e-commerce websites and mobile experiences, supported by influencer marketing, social media, content creation and data-driven merchandising.