Revolve Q3 sales beat consensus on order growth

Revolve

03/11/2026 21:10

Overview
US fashion retailer's Q3 sales rose 20%, beating analyst expectations
Adjusted EBITDA for Q3 beat analyst expectations
Q3 net income and EPS declined year-over-year, partly due to prior insurance recovery

Outlook
Company sees Q4 2026 gross margin between 52.3% and 52.8%
Revolve forecasts FY 2026 gross margin of 53.9% to 54.0%
Company cites macroeconomic and cost pressures as potential headwinds to consumer spending

Result Drivers
CUSTOMER GROWTH - Co said 18% increase in active customers year-over-year fueled sales growth
ORDER VOLUME AND RETURNS - Co said 19% rise in orders and reduced product return rate drove net sales, offset by lower average order value
MARKETING INVESTMENT - Co said higher marketing spend supported growth initiatives, including new brand launches

Company press release: ID:nPn4YlGha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$355.96 mln
$345.03 mln (13 Analysts)
Q3 EPS
 
$0.20
 
Q3 Net Income
 
$15.52 mln
 
Q3 Adjusted EBITDA
Beat
$23.49 mln
$23.15 mln (12 Analysts)
Q3 Gross Margin
 
53.90%
 
Q3 Gross Profit
 
$191.80 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 $30.00, about 36.4% above its November 2 closing price of $22.00
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 25 three months ago

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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.)