Revolve Group (RVLV) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 2.06
• Revenue Growth: 9.24%
• EPS Growth: 35.68%
• Country: US
• Employees: 1,632
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.29
• Shares Outstanding: 40,415,440
• 10 Day Avg. Volume: 1,380,412
• 30 Day Avg. Volume: 1,236,345
• PEG Ratio: 0.60
• Price to Book (P/B): 5.41
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 112.75
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 1.97
• Enterprise Value/Ebitda: 16.11
• 1Y Price Target: $25.44
• Price Target Upside: 20.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.55
• Revenue Forecast (FY): $1.21B

• Rating: 71 Outperform
• Price Target: $24.50 ▲(16.17% Upside)

Revolve Group's overall stock score is driven by strong financial performance and positive earnings call highlights, including significant margin expansion and strategic initiatives in AI and international growth. However, the stock's high valuation and mixed technical indicators temper the score, with concerns about slower sales growth and increased return rates also impacting the outlook.

Positive Factors

Gross Margin Expansion

The significant gross margin expansion reflects effective cost management and pricing strategies, enhancing profitability and providing a competitive edge in the retail sector.

Cash Flow Generation

Strong cash flow generation and a debt-free balance sheet enhance financial flexibility, enabling strategic investments and resilience against economic fluctuations.

AI Integration for Efficiency

AI integration boosts operational efficiency and productivity, reducing costs and potentially increasing margins, which is crucial for long-term competitiveness in the fast-paced retail industry.

Negative Factors

Slower Net Sales Growth

Slower net sales growth indicates potential challenges in market expansion and consumer demand, which could impact revenue and market share if not addressed.

Higher Return Rates

Increased return rates can lead to higher fulfillment costs and erode profit margins, necessitating improvements in product quality and customer satisfaction strategies.

Challenges in Asian Regions

Challenges in Asian markets may hinder international expansion efforts, limiting growth opportunities and diversification of revenue streams.

Revolve Group Business Overview & Revenue Model

Company Description

Revolve Group, Inc. (RVLV) is a leading online fashion retailer based in the United States, specializing in the sale of trendy apparel, accessories, and footwear. The company primarily targets millennials and Gen Z consumers through its e-commerce platform, offering a curated selection of popular brands as well as its own private label collections. Revolve operates in the fast-paced fashion industry, emphasizing a strong social media presence and influencer marketing to drive consumer engagement and sales.

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	1.20B	1.13B	1.07B	1.10B	891.39M	580.65M
Gross Profit	637.16M	593.27M	554.20M	592.32M	489.82M	305.28M
EBITDA	77.81M	56.58M	27.53M	77.93M	109.80M	65.89M
Net Income	55.49M	49.56M	28.15M	58.70M	99.84M	56.79M
Balance Sheet
Total Assets	751.26M	665.55M	608.89M	579.32M	480.41M	305.75M
Cash, Cash Equivalents and Short-Term Investments	315.43M	256.60M	245.45M	234.72M	218.46M	146.01M
Total Debt	35.29M	40.73M	40.99M	24.50M	6.94M	0.00
Total Liabilities	261.05M	227.76M	223.75M	199.75M	163.40M	105.69M
Stockholders Equity	490.21M	438.19M	385.14M	379.57M	317.01M	200.06M
Cash Flow
Free Cash Flow	63.37M	21.04M	39.14M	18.27M	60.12M	71.45M
Operating Cash Flow	73.50M	26.69M	43.34M	23.44M	62.31M	73.77M
Investing Cash Flow	-14.29M	-9.11M	-4.20M	-5.17M	-2.19M	-2.32M
Financing Cash Flow	3.74M	-5.36M	-30.38M	887.00K	12.77M	8.66M

Revolve Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVLV, the sentiment is Negative. The current price of 21.09 is below the 20-day moving average (MA) of 21.85, below the 50-day MA of 22.31, and below the 200-day MA of 22.53, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 29.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RVLV.

Revolve Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBH	73 Outperform	$1.40B	7.78	28.94%	―	-0.38%	35.78%
RVLV	71 Outperform	$1.58B	27.39	12.19%	―	9.24%	35.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WINA	58 Neutral	$1.50B	37.61	―	2.69%	3.35%	1.97%
SVV	58 Neutral	$1.34B	―	-0.40%	―	6.45%	-102.30%
EYE	53 Neutral	$1.96B	-668.80	-0.37%	―	-1.58%	85.04%
TDUP	52 Neutral	$983.62M	―	-35.37%	―	-4.90%	50.77%

Revolve Group Corporate Events

Revolve Group’s Earnings Call Highlights Growth and Challenges

Revolve Group’s recent earnings call painted a picture of strong financial performance, marked by significant achievements in gross margin expansion, adjusted EBITDA growth, and cash flow improvements. Despite these positive developments, the company faces challenges with slower net sales growth and increased return rates. The overall sentiment suggests a favorable outlook, though concerns about sales growth persist.

Revolve Group Reports Strong Q3 2025 Results

Revolve Group, Inc. is a next-generation fashion retailer catering to Millennial and Generation Z consumers, offering a diverse range of apparel, footwear, accessories, beauty, and home products through its dynamic online platform. The company operates through two segments, REVOLVE and FWRD, providing a curated selection of premium and luxury brands.

Revolve Group’s Earnings Call: Strong Growth Amid Challenges

Revolve Group’s latest earnings call exuded a positive sentiment, highlighting the company’s impressive achievements in revenue growth, international expansion, and financial stability. Despite facing challenges such as tariffs and a higher tax rate, Revolve demonstrated resilience by generating significant cash flow, improving inventory efficiency, and enhancing technological capabilities, thereby strengthening its competitive position.

Revolve Group Reports Strong Q2 2025 Financial Performance

Revolve Group, Inc., a prominent fashion retailer catering to Millennial and Generation Z consumers, specializes in offering a curated selection of apparel, footwear, accessories, beauty, and home products through its online platform. The company operates through two segments, REVOLVE and FWRD, which provide a mix of premium and luxury brands.