Revolve Group (NYSE:RVLV) Releases Earnings Results, Beats Estimates By $0.05 EPS

Revolve Group (NYSE:RVLV) posted 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. The firm had revenue of $347.41 million during the quarter, compared to analyst estimates of $341.91 million. Revolve Group had a net margin of 5.05% and a return on equity of 12.17%.

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 Stock Performance

RVLV stock traded up $0.32 during trading on Tuesday, reaching $26.34. The company had a trading volume of 1,507,441 shares, compared to its average volume of 1,060,580. The firm has a 50-day simple moving average of $22.57 and a 200-day simple moving average of $23.83. The company has a market cap of $1.88 billion, a price-to-earnings ratio of 29.59, a price-to-earnings-growth ratio of 2.72 and a beta of 1.60. Revolve Group has a twelve month low of $17.35 and a twelve month high of $31.68.

Analyst Ratings Changes

Several brokerages have weighed in on RVLV. BTIG Research restated a “buy” rating and issued a $35.00 target price on shares of Revolve Group in a research note on Wednesday, May 6th. Robert W. Baird set a $28.00 price target on Revolve Group in a research report on Wednesday, May 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Revolve Group in a report on Friday, July 17th. Wall Street Zen cut Revolve Group from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Finally, UBS Group dropped their target price on Revolve Group from $31.00 to $28.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 6th. Seven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, Revolve Group currently has an average rating of “Moderate Buy” and an average target price of $29.33.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Kestra Advisory Services LLC acquired a new stake in shares of Revolve Group during the fourth quarter worth $40,000. Quarry LP increased its position in shares of 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 acquiring an additional 3,674 shares during the period. Quantbot Technologies LP acquired a new position in shares of Revolve Group in the 2nd quarter valued at $159,000. Caxton Associates LLP purchased a new position in Revolve Group in the 1st quarter worth $232,000. Finally, Captrust Financial Advisors purchased a new position in Revolve Group in the 4th quarter worth $278,000. Institutional investors and hedge funds 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.