GICS Sector : Consumer Cyclical
Revolve Group, Inc.operates as an online fashion retailer for consumers in the United States and internationally.The company operates in two segments, REVOLVE and FWRD.
Revolve Group's Q3 2025 financial performance was marked by a 4% year-over-year increase in net sales to $296 million, driven by domestic and international growth of 4% and 6%, respectively. The company's gross margin expanded significantly to 54.6%, a 3.5-point increase year-over-year, resulting in a 45% increase in adjusted EBITDA. Earnings per share (EPS) came in at $0.24, beating estimates of $0.11. The strong bottom-line performance was driven by the company's operating discipline and successful tariff mitigation efforts.
Publication Date: Nov -21
The REVOLVE segment saw a 5% year-over-year increase in net sales, while the FWRD segment grew 3%. Active customers increased 5% year-over-year, and total orders placed rose 5% to $2.3 million. As noted by Jesse Timmermans, "We delivered a record adjusted EBITDA for any third quarter, driving more than 2 points of expansion in our adjusted EBITDA margin year-over-year."
The company's gross margin expansion was driven by shallower markdowns, a higher percentage of full-price sales, and higher margins on those sales. Fulfillment costs and selling and distribution costs are expected to be approximately 3.3% and 17.6% of net sales, respectively, in the fourth quarter.
With a P/E Ratio of 28.24 and an EV/EBITDA of 16.55, the market is pricing in significant growth expectations. Analysts estimate revenue growth of 6.4% next year. The company's strong financial foundation, with a ROE of 11.99% and ROIC of 9.15%, positions it for continued investment in growth initiatives. The net debt to EBITDA ratio of -3.6 indicates a healthy balance sheet.
Revolve is continuing to invest in marketing efforts, expand its international presence, and develop its owned brands. The company is also leveraging AI technology to drive growth and efficiency. With a strong track record of margin expansion and revenue growth, Revolve is well-positioned to drive long-term shareholder value creation.
Revolve Group, Inc. (RVLV) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript
Dec -03
Analyzing Talon International (OTCMKTS:TALN) & Revolve Group (NYSE:RVLV)
Nov -26
Revolve Reports Stable Recurring Revenue and Significant Progress Across North American Project Portfolio in Q1, F2026
Nov -25
Creative Planning Buys 15,104 Shares of Revolve Group, Inc. $RVLV
Nov -24
Revolve Group, Inc. to Present at Upcoming Morgan Stanley, Barclays and KeyBanc Capital Markets Investor Conferences
Nov -19
Revolve Announces Closing of Private Placement for Gross Proceeds of $3 Million
Nov -07
Revolve Wealth Partners LLC Sells 4,141 Shares of NVIDIA Corporation $NVDA
Nov -06
SGC vs. RVLV: Which Stock Is the Better Value Option?
Nov -05
Revolve's 10% growth is driven by increasing online presence, strong brand recognition, and effective influencer marketing. Additionally, the company's focus on premium and luxury products, as well as its ability to adapt to changing consumer preferences, contribute to its growth. Furthermore, Revolve's data-driven approach to inventory management and supply chain optimization also support its growth momentum.
Revolve Group's 8% growth is driven by increasing online fashion demand, strong brand recognition, and effective influencer marketing strategies. Additionally, the company's focus on premium and luxury products, as well as its expanding product categories, contribute to its growth momentum.
Revolve Group offers a wide range of women's apparel, including dresses, tops, bottoms, outerwear, and more from various brands and in-house labels.
Revolve Group provides a curated selection of men's apparel, including shirts, pants, denim, outerwear, and accessories from popular brands and in-house labels.
Revolve Group offers a range of beauty and wellness products, including skincare, haircare, makeup, and fragrances from popular brands and emerging labels.
Revolve Group provides a vast selection of shoes, handbags, hats, scarves, and other accessories from renowned brands and in-house labels.
Revolve Group offers a curated selection of home decor, furniture, and lifestyle products, including candles, kitchenware, and more.
Revolve Group, Inc. operates in the fashion industry, where substitutes are readily available. However, the company's strong brand recognition and loyalty programs help to mitigate the threat of substitutes.
Revolve Group, Inc. operates in the fashion industry, where customers have a high degree of bargaining power due to the availability of substitutes and the ease of switching between brands.
Revolve Group, Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company's strong brand recognition and scale of operations give it negotiating power over its suppliers.
While the fashion industry is highly competitive, Revolve Group, Inc.'s strong brand recognition and established relationships with suppliers and customers create barriers to entry for new entrants.
The fashion industry is highly competitive, with many established players and new entrants vying for market share. Revolve Group, Inc. faces intense competition from other online fashion retailers, which drives down prices and increases marketing expenses.
| Value | |
|---|---|
| Debt Weight | 9.62% |
| Debt Cost | 3.95% |
| Equity Weight | 90.38% |
| Equity Cost | 14.70% |
| WACC | 13.67% |
| Leverage | 10.64% |
Value: 7.7
Growth: 3.3
Quality: 5.1
Yield: 0.0
Momentum: 8.0
Volatility: 3.0
1-Year Total Return ->
Value: 9.7
Growth: 1.2
Quality: 5.4
Yield: 5.0
Momentum: 1.0
Volatility: 1.7
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Value: 2.7
Growth: 5.3
Quality: 6.6
Yield: 0.0
Momentum: 2.5
Volatility: 3.0
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Value: 8.3
Growth: 4.0
Quality: 2.3
Yield: 0.0
Momentum: 2.5
Volatility: 2.7
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Value: 6.6
Growth: 3.8
Quality: 2.9
Yield: 0.0
Momentum: 4.0
Volatility: 2.3
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Value: 9.6
Growth: 1.6
Quality: 4.4
Yield: 0.0
Momentum: 1.0
Volatility: 0.0
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