Revolve Group (NYSE:RVLV) Shares Gap Down on Disappointing Earnings

Shares of Revolve Group, Inc. (NYSE:RVLV) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $21.53, but opened at $18.69. Revolve Group shares last traded at $21.6220, with a volume of 434,284 shares changing hands.

The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The firm had revenue of $355.96 million for the quarter, compared to the consensus estimate of $345.49 million. Revolve Group had a net margin of 5.54% and a return on equity of 13.38%. The business’s revenue was up 20.4% on a year-over-year basis. During the same period last year, the company posted $0.29 earnings per share.

More Revolve Group News

Here are the key news stories impacting Revolve Group this week:

• Positive Sentiment: Third-quarter revenue rose 20.4% year over year to about $356 million, exceeding analysts’ estimate of roughly $345.5 million. Management said sales grew at least 20% across REVOLVE and FWRD and in domestic and international markets. Revolve Group Announces Third Quarter 2026 Financial Results
• Negative Sentiment: Adjusted earnings pressure was the counterpoint to sales growth: EPS was $0.20, below estimates of $0.21–$0.22 and lower than the year-ago result cited in reports. That earnings shortfall may be weighing on sentiment despite the revenue beat. Revolve Group Lags Q3 Earnings Estimates
• Negative Sentiment: Revolve signaled fourth-quarter gross margin of 52.3%–52.8%, with fuel surcharges pressuring shipping costs. The outlook points to continued cost headwinds that could limit how much sales growth translates into profit. Revolve signals Q4 gross margin as fuel surcharges pressure shipping costs

Wall Street Analyst Weigh In

Several research firms have weighed in on RVLV. Weiss Ratings upgraded Revolve Group from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, September 24th. TD Cowen initiated coverage on Revolve Group in a research note on Friday, October 30th. They set a “strong-buy” rating on the stock. Wall Street Zen downgraded Revolve Group from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Morgan Stanley set a $25.00 price target on Revolve Group in a research note on Wednesday. Finally, UBS Group dropped their price target on Revolve Group from $29.00 to $27.00 and set a “neutral” rating for the company in a research note on Tuesday, October 27th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $29.38.

Institutional Investors Weigh In On Revolve Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Inspire Investing LLC grew its stake in shares of Revolve Group by 1.9% in the third quarter. Inspire Investing LLC now owns 29,901 shares of the company’s stock worth $638,000 after acquiring an additional 553 shares during the last quarter. Sterling Capital Management LLC raised its position in shares of Revolve Group by 842.6% in the 3rd quarter. Sterling Capital Management LLC now owns 1,395 shares of the company’s stock worth $30,000 after purchasing an additional 1,247 shares during the last quarter. Royal Bank of Canada raised its position in shares of Revolve Group by 7.8% in the 1st quarter. Royal Bank of Canada now owns 26,400 shares of the company’s stock worth $597,000 after purchasing an additional 1,904 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Revolve Group in the 2nd quarter worth about $46,000. Finally, State of Wyoming raised its position in shares of Revolve Group by 44.1% in the 3rd quarter. State of Wyoming now owns 18,050 shares of the company’s stock worth $385,000 after purchasing an additional 5,526 shares during the last quarter. Hedge funds and other institutional investors own 67.60% of the company’s stock.

Revolve Group Trading Down 0.1%

The company has a market cap of $1.53 billion, a P/E ratio of 21.29, a PEG ratio of 2.78 and a beta of 1.62. The stock’s 50 day moving average is $21.69 and its 200-day moving average is $23.29.

Revolve Group Company Profile

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.