Revolve Group Q2 sales beat estimates

Revolve

05/08/2025 21:12

Overview

Revolve Q2 net sales rise 9% yr/yr, beating analyst expectations, per LSEG data

Adjusted EBITDA for Q2 rises 12%, beating analyst estimates

Net income for Q2 falls 35% yr/yr

Outlook

Revolve expects FY 2025 gross margin of 52.1% to 52.6%

Company projects Q3 2025 gross margin between 51.2% and 51.7%

Revolve forecasts FY 2025 fulfillment expenses at 3.1% to 3.2% of net sales

Company sees Q3 2025 marketing expenses at 14.5% of net sales

Result Drivers

NET SALES GROWTH - 9% yr/yr increase in net sales driven by higher Owned Brand sales, despite lower full-price sales

CASH FLOW IMPROVEMENT - Significant increase in cash flow due to higher sales and operational efficiencies, enabling continued investment in growth initiatives

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$308.97 mln
$297.40 mln (14 Analysts)
Q2 EPS
$0.14
Q2 Net Income
$10.01 mln
Q2 Adjusted EBITDA
Beat
$22.89 mln
$14.90 mln (14 Analysts)
Q2 Gross Margin
54.1%
Q2 Gross Profit
$167.06 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the department stores peer group is "buy"

Wall Street's median 12-month price target for Revolve Group Inc is $23.00, about 11.3% above its August 4 closing price of $20.41

The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nPnb6gMg6a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)