Revolve Q1 net sales beat estimates on strong active customer growth

Revolve

05/05/2026 21:14

Overview

US online fashion retailer's Q1 net sales rose 16%, beating analyst expectations

Adjusted EBITDA for Q1 slightly beat consensus; diluted EPS up 25% yr/yr

Company cites higher active customer growth and new brand launches as key drivers

Outlook

Revolve sees Q2 2026 gross margin at 54.1% to 54.6%

Company expects FY 2026 gross margin of 53.5% to 54.0%, slightly revised from prior outlook

Revolve says macroeconomic headwinds, including tariffs and inflation, may impact consumer spending

Result Drivers

ACTIVE CUSTOMER GROWTH - Co said active customers grew 8% yr/yr, the highest rate in over two years, supporting sales growth

NEW BRAND LAUNCHES - Launches of REVOLVE Los Angeles label and Grow-Good Beauty with Cardi B contributed to Q1 sales momentum

INCREASED MARKETING SPEND - Higher marketing investment supported growth initiatives and new product launches

Company press release: ID:nPn1fL7l5a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$342.9 mln
$327.93 mln (15 Analysts)
Q1 EPS
$0.20
Q1 Net Income
$13.76 mln
Q1 Adjusted EBITDA
Slight Beat*
$21.06 mln
$20.86 mln (14 Analysts)
Q1 Gross Margin
52.70%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "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 $31.00, about 32.1% above its May 4 closing price of $23.46

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 33 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)