Revolve Q2 sales beat analyst estimates as active customer growth reaches highest rate in nearly 3 years

Revolve

04/08/2026 21:16

Overview
US online fashion retailer's Q2 net sales rose 12%, beating analyst expectations
Q2 adjusted EBITDA increased 17% and beat analyst expectations
Active customers grew 11% yr/yr, highest rate in nearly three years

Outlook
Revolve sees Q3 2026 gross margin at 53.5% to 54.0%
Company expects FY 2026 gross margin of 53.5% to 54.0%
Revolve says outlook reflects macroeconomic headwinds including tariffs, inflation and supply chain disruptions

Result Drivers
TARIFF REFUNDS - Co said gross profit and net income were positively impacted by IEEPA tariff refunds received during the quarter
ACTIVE CUSTOMER GROWTH - Co said active customers grew 11% yr/yr, the highest rate in nearly three years, reflecting increased engagement
MARKETING INVESTMENTS - Co said increased marketing expenses supported growth initiatives including launch of namesake label and new beauty products

Company press release: ID:nPn4x20yfa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$347.41 mln
$341.67 mln (13 Analysts)
Q2 EPS
 
$0.26
 
Q2 Net Income
 
$18.62 mln
 
Q2 Adjusted EBITDA
Beat
$26.78 mln
$23.38 mln (13 Analysts)
Q2 Gross Margin
 
56.60%
 
Q2 Gross Profit
 
$196.67 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 $28.00, about 7.6% above its August 3 closing price of $26.02
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago

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(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.)