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

Revolve Group (NYSE:RVLV) announced its quarterly earnings results on Tuesday. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02), Zacks reports. Revolve Group had a net margin of 5.54% and a return on equity of 13.38%. The company had revenue of $355.96 million for the quarter, compared to analysts’ expectations of $345.49 million. During the same quarter in the prior year, the firm earned $0.29 EPS. Revolve Group’s quarterly revenue was up 20.4% compared to the same quarter last year.

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%

Shares of RVLV stock opened at $21.73 on Wednesday. The company has a 50 day moving average price of $21.69 and a 200-day moving average price of $23.29. Revolve Group has a 52 week low of $17.35 and a 52 week high of $31.68. The firm has a market capitalization of $1.54 billion, a PE ratio of 21.52, a P/E/G ratio of 2.78 and a beta of 1.62.

More Revolve Group News

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

• Positive Sentiment: Q3 revenue rose 20.4% year over year to $355.96 million, topping analysts’ $345.49 million estimate. The company said sales grew at least 20% across both REVOLVE and FWRD and in domestic and international markets. Revolve Group Announces Third Quarter 2026 Financial Results
• Neutral Sentiment: Revolve indicated Q4 gross margin of 52.3%–52.8%. That provides an outlook for profitability, though the range must be considered alongside the cost pressures noted below. Revolve signals Q4 gross margin range
• Negative Sentiment: Q3 adjusted earnings were $0.20 per share, below the roughly $0.21–$0.22 analyst estimates, despite the revenue beat. Earnings also declined from the year-ago quarter, highlighting that sales growth has not translated into stronger per-share profit. Revolve Group Lags Q3 Earnings Estimates
• Negative Sentiment: Fuel surcharges are pressuring shipping costs, a potential drag on Q4 gross margins and profitability. Revolve signals Q4 gross margin range

Wall Street Analysts Forecast Growth

RVLV has been the subject of several research analyst reports. UBS Group lowered their price objective on shares of Revolve Group from $29.00 to $27.00 and set a “neutral” rating for the company in a report on Tuesday, October 27th. BTIG Research reiterated a “buy” rating and set a $35.00 target price on shares of Revolve Group in a report on Wednesday, October 28th. Piper Sandler increased their target price on Revolve Group from $27.00 to $30.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 5th. Roth Capital reissued a “buy” rating and issued a $37.00 target price on shares of Revolve Group in a research report on Wednesday, August 5th. Finally, Wall Street Zen cut shares of Revolve Group from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $29.38.

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.