Revolve Group (NYSE:RVLV) Posts Earnings Results, Beats Expectations By $0.05 EPS

Revolve Group (NYSE:RVLV) issued its quarterly earnings data on Tuesday. The company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.21 by $0.05, FiscalAI reports. Revolve Group had a return on equity of 13.57% and a net margin of 5.54%.The business had revenue of $347.41 million for the quarter, compared to the consensus estimate of $341.91 million. During the same quarter last year, the business posted $0.14 EPS. The firm’s revenue was up 12.5% compared to the same quarter last year.

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 Trading Down 2.0%

Shares of Revolve Group stock traded down $0.52 on Thursday, reaching $24.79. 66,764 shares of the company were exchanged, compared to its average volume of 1,063,190. The company has a market capitalization of $1.77 billion, a price-to-earnings ratio of 24.61, a PEG ratio of 2.85 and a beta of 1.60. Revolve Group has a one year low of $17.35 and a one year high of $31.68. The company has a 50-day moving average of $22.81 and a 200 day moving average of $23.76.

Institutional Trading of Revolve Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Kestra Advisory Services LLC bought a new position in shares of Revolve Group in the 4th quarter valued at about $40,000. Quarry LP lifted its stake in Revolve Group by 6,932.1% in the 3rd quarter. Quarry LP now owns 3,727 shares of the company’s stock valued at $79,000 after purchasing an additional 3,674 shares during the last quarter. Quantbot Technologies LP bought a new position in Revolve Group during the second quarter worth about $159,000. Caxton Associates LLP bought a new position in Revolve Group during the first quarter worth about $232,000. Finally, Captrust Financial Advisors acquired a new position in Revolve Group during the fourth quarter worth approximately $278,000. 67.60% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on RVLV. TD Cowen upped their price target on shares of Revolve Group from $28.00 to $31.00 and gave the company a “buy” rating in a report on Wednesday. Roth Capital reaffirmed a “buy” rating and issued a $37.00 price objective on shares of Revolve Group in a research report on Wednesday. Morgan Stanley set a $27.00 target price on Revolve Group in a report on Wednesday, May 6th. KeyCorp cut their price target on Revolve Group from $35.00 to $32.00 and set an “overweight” rating on the stock in a report on Wednesday, May 6th. Finally, Piper Sandler upped their price objective on Revolve Group from $27.00 to $30.00 and gave the stock an “overweight” rating in a research report on Wednesday. Seven analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, Revolve Group currently has a consensus rating of “Moderate Buy” and an average target price of $30.08.

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.