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

Revolve Group (NYSE:RVLV) issued its quarterly earnings data on Tuesday. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02), Zacks reports. The business had revenue of $355.96 million during the quarter, compared to analysts’ expectations of $345.49 million. Revolve Group had a return on equity of 12.52% and a net margin of 4.81%. The company’s quarterly revenue was up 20.4% on a year-over-year basis. During the same quarter last year, the business posted $0.29 EPS.

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 Price Performance

NYSE RVLV traded down $0.78 on Thursday, reaching $19.20. 476,252 shares of the company’s stock traded hands, compared to its average volume of 992,327. Revolve Group has a 12 month low of $17.35 and a 12 month high of $31.68. The stock has a 50-day simple moving average of $21.62 and a 200 day simple moving average of $23.24. The stock has a market cap of $1.37 billion, a PE ratio of 20.86, a P/E/G ratio of 2.72 and a beta of 1.62.

Key Revolve Group News

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

• Positive Sentiment: Third-quarter revenue increased 20.4% year over year to $355.96 million, beating estimates of $345.49 million. The company reported growth of at least 20% across its REVOLVE and FWRD segments and in domestic and international markets. Revolve Group Q3 results
• Neutral Sentiment: Analysts lowered their price targets but retained ratings ranging from “neutral” to “buy” or “overweight.” UBS cut its target to $26, while TD Cowen reduced its target to $25 and Piper Sandler to $26; these targets remain above the share price cited in the reports. UBS rating TD Cowen rating Piper Sandler price target
• Negative Sentiment: EPS was $0.20, below the $0.22 consensus and down from $0.29 a year earlier. Reports attributed the earnings pressure to rising operating costs and margin compression despite sales growth. Q3 earnings and cost pressures
• Negative Sentiment: Revolve indicated fourth-quarter gross margin of 52.3%–52.8%, with fuel surcharges adding pressure to shipping costs. This outlook reinforces concerns that expenses could continue to constrain profitability. Q4 gross-margin outlook

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on RVLV. Roth Capital restated a “buy” rating and issued a $37.00 target price on shares of Revolve Group in a research note on Wednesday, August 5th. Wall Street Zen downgraded Revolve Group from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Raymond James Financial cut their price objective on Revolve Group from $28.00 to $25.00 and set an “outperform” rating for the company in a report on Friday, October 16th. TD Cowen cut their price objective on Revolve Group from $31.00 to $25.00 and set a “buy” rating for the company in a report on Wednesday. Finally, UBS Group decreased their price objective on shares of Revolve Group from $27.00 to $26.00 and set a “neutral” rating on the stock in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $29.17.

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.