Revolve Group (NYSE:RVLV) Issues 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 for the quarter, missing the consensus estimate of $0.22 by ($0.02), Zacks reports. Revolve Group had a return on equity of 13.38% and a net margin of 5.54%. The company had revenue of $355.96 million for the quarter, compared to the consensus estimate of $345.49 million.

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 Trading Down 1.2%

Shares of RVLV stock traded down $0.27 on Tuesday, reaching $21.73. 1,441,735 shares of the company’s stock were exchanged, compared to its average volume of 986,961. The company’s fifty day simple moving average is $21.73 and its 200 day simple moving average is $23.34. Revolve Group has a 52 week low of $17.35 and a 52 week high of $31.68. The stock has a market capitalization of $1.54 billion, a PE ratio of 21.52, a P/E/G ratio of 2.84 and a beta of 1.70.

Analyst Ratings Changes

RVLV has been the subject of several analyst reports. Weiss Ratings raised Revolve Group from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, September 24th. TD Cowen assumed coverage on Revolve Group in a research report on Friday. They set a “strong-buy” rating on the stock. UBS Group decreased their price target on Revolve Group from $29.00 to $27.00 and set a “neutral” rating on the stock in a report on Tuesday, October 27th. BTIG Research restated a “buy” rating and issued a $35.00 price target on shares of Revolve Group in a research report on Wednesday, October 28th. Finally, Roth Capital restated a “buy” rating and issued a $37.00 price target on shares of Revolve Group in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $29.69.

Key Stories Impacting Revolve Group

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

• Positive Sentiment: Third-quarter revenue was about $356 million, topping estimates of roughly $345.5 million. The company also reported sales growth of at least 20% across both REVOLVE and FWRD and in domestic and international markets. Revolve Group Announces Third Quarter 2026 Financial Results
• Negative Sentiment: Adjusted earnings were $0.20 per share, below analyst estimates of $0.21–$0.22 and down from $0.24 a year earlier. The earnings miss and year-over-year decline are potential pressure points for the shares. Revolve Group Lags Q3 Earnings Estimates

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.