Revolve Group (RVLV) AI Stock Analysis

• Market Cap: $1.53B
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 35.9
• Beta (1Y): 1.90
• Revenue Growth: 10.68%
• EPS Growth: 37.84%
• Country: US
• Employees: 1,632
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Specialty Retail
• EPS (TTM): 0.14
• Shares Outstanding: 40,376,858
• 10 Day Avg. Volume: 999,663
• 30 Day Avg. Volume: 1,337,161
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 1.88
• Enterprise Value/Ebitda: 18.24
• 1Y Price Target: $25.00
• Price Target Upside: 9.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: $25.00 ▲(9.36% Upside)

Revolve Group's strong financial performance and positive earnings call insights are the primary drivers of its stock score. The company's robust cash flow and strategic focus on international expansion and AI advancements position it well for future growth. However, valuation concerns and technical resistance limit the overall score.

Positive Factors

Earnings

Revolve second-quarter sales and earnings came in ahead of expectations with better gross margin and modest reductions to some variable cost line items.

International Growth

International growth is robust, with a 17% increase, and owned brands are driving higher sales and margins.

Platform Strength

The company's competitively advantaged platform with customer acquisition and engagement is supported by deep data pools and proprietary systems, a strong balance sheet, and significant optionality for international, new category, and retail expansion.

Negative Factors

Margin Guidance

Management lowered the full-year margin guidance to reflect tariff impacts and a consumer pullback due to macroeconomic uncertainty.

Revenue Growth

Revolve Group was affected as revenue growth slowed, which the company attributed to macro impacts and customers opting for lower-priced items.

Tariffs

The company has mid-teens direct import exposure to China, which remains a risk due to high tariffs.

Revolve Group Business Overview & Revenue Model

Company Description

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. It operates a platform that connects consumers and global fashion influencers, as well as emerging, established, and owned brands. The company offers women's apparel, footwear, accessories, and beauty styles under established and emerging brands, as well as owned brands. It also provides various luxury brands. The company was formerly known as Advance Holdings, LLC and changed its name to Revolve Group, Inc. in October 2018. Revolve Group, Inc. was founded in 2003 and is headquartered in Cerritos, California.

How the Company Makes Money

Revolve Group generates revenue primarily through the sale of clothing, accessories, and footwear on its e-commerce platform. The company operates a direct-to-consumer model, allowing it to maintain higher margins by selling products directly to customers without intermediaries. Key revenue streams include sales from its proprietary brands and third-party brands featured on its site. Additionally, Revolve benefits from strategic partnerships with social media influencers and fashion bloggers who promote its products, driving traffic and sales. The company also leverages data analytics to optimize inventory management and enhance customer personalization, contributing to increased sales and customer loyalty.

Revolve Group Financial Statement Overview

Summary

Revolve Group exhibits a solid financial position with consistent revenue growth, strong gross margins, and prudent balance sheet management. While profitability margins could be improved, the company's robust cash flow generation and low leverage provide a stable foundation for future growth.

Income Statement

Revolve Group shows a stable revenue growth trajectory with a 2.29% increase in TTM, although growth has slowed compared to previous years. Gross profit margin remains strong at 52.43%, indicating efficient cost management. However, the net profit margin is relatively low at 4.37%, suggesting room for improvement in profitability. EBIT and EBITDA margins are modest at 5.56% and 5.25%, respectively, reflecting moderate operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.098, indicating conservative leverage. Return on equity is solid at 11.76%, showcasing effective use of shareholder funds. The equity ratio stands at a robust level, reflecting a strong capital structure and financial stability.

Cash Flow

Revolve Group demonstrates impressive free cash flow growth of 138.22% in TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.15, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.80 indicates a healthy cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	1.13B	1.07B	1.10B	891.39M	580.65M
Gross Profit	620.51M	593.27M	554.20M	592.32M	489.82M	305.28M
EBITDA	64.05M	56.58M	27.53M	77.93M	109.80M	65.89M
Net Income	45.29M	49.56M	28.15M	58.70M	99.84M	56.79M
Balance Sheet
Total Assets	722.92M	665.55M	608.89M	579.32M	480.41M	305.75M
Cash, Cash Equivalents and Short-Term Investments	310.72M	256.60M	245.45M	234.72M	218.46M	146.01M
Total Debt	37.53M	40.73M	40.99M	24.50M	6.94M	0.00
Total Liabilities	254.34M	227.76M	223.75M	199.75M	163.40M	105.69M
Stockholders Equity	468.59M	438.19M	385.14M	379.57M	317.01M	200.06M
Cash Flow
Free Cash Flow	63.88M	21.04M	39.14M	18.27M	60.12M	71.45M
Operating Cash Flow	70.73M	26.69M	43.34M	23.44M	62.31M	73.77M
Investing Cash Flow	-11.98M	-9.11M	-4.20M	-5.17M	-2.19M	-2.32M
Financing Cash Flow	2.59M	-5.36M	-30.38M	887.00K	12.77M	8.66M

Revolve Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVLV, the sentiment is Positive. The current price of 22.86 is above the 20-day moving average (MA) of 21.53, above the 50-day MA of 21.23, and below the 200-day MA of 25.15, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 53.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RVLV.

Revolve Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIPS	79 Outperform	$8.27B	9.10	17.79%	2.83%	-5.24%	-12.89%
MNSO	77 Outperform	$7.37B	23.52	22.92%	2.53%	10.93%	-10.83%
RVLV	75 Outperform	$1.53B	35.91	10.36%	―	10.68%	37.84%
ASO	72 Outperform	$3.29B	9.28	18.42%	0.96%	-2.20%	-17.95%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
W	57 Neutral	$10.07B	―	17.86%	―	0.87%	54.67%
ETSY	57 Neutral	$5.17B	41.75	-39.97%	―	2.38%	-38.88%

Revolve Group Corporate Events

Revolve Group Holds 2025 Annual Stockholders Meeting

On June 6, 2025, Revolve Group held its 2025 Annual Meeting of Stockholders where three proposals were presented. The stockholders elected directors to the board, ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s named executive officers on a non-binding advisory basis.