Revolve Group (RVLV) AI Stock Analysis

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Revolve Group

(NYSE:RVLV)

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Outperform 76 (OpenAI - 4o)

Rating:76Outperform

Price Target:

$26.00

▲(17.86% Upside)

Revolve Group's overall stock score reflects its solid financial performance and strong earnings call highlights, particularly in international expansion and cash flow generation. However, the high valuation and technical indicators suggest a cautious approach. The company's strategic investments in AI and owned brands are positive, but challenges like tariff pressures and a higher tax rate could impact future profitability.

Positive Factors

International Market Expansion

Revolve's strong international sales growth, particularly in China, indicates successful market penetration and potential for sustained revenue expansion in diverse regions.

Owned Brands Growth

Consistent growth in owned brands enhances margins and brand loyalty, providing a competitive edge and supporting long-term profitability.

Cash Flow Generation

Robust cash flow generation strengthens financial flexibility, enabling strategic investments and cushioning against economic uncertainties.

Negative Factors

Tariff Challenges

Tariff-related costs create a complex operating environment, potentially squeezing margins and complicating supply chain management over the long term.

Decrease in Average Order Value

A decline in average order value can indicate changing consumer preferences or pricing challenges, potentially impacting revenue growth and profitability.

Increased Tax Rate

A higher tax rate reduces net income and cash available for reinvestment, potentially hindering growth initiatives and shareholder returns.

Revolve Group (RVLV) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.62B

Dividend YieldN/A

Average Volume (3M)1.07M

Price to Earnings (P/E)35.1

Beta (1Y)1.87

Revenue Growth10.68%

EPS Growth37.84%

CountryUS

Employees1,632

SectorConsumer Cyclical

Sector Strength84

IndustrySpecialty Retail

Share Statistics

EPS (TTM)0.14

Shares Outstanding40,376,858

10 Day Avg. Volume1,130,444

30 Day Avg. Volume1,067,489

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.72

Enterprise Value/Revenue0.99

Enterprise Value/Gross Profit1.88

Enterprise Value/Ebitda18.24

Forecast

1Y Price Target

$25.00

Price Target Upside13.33% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

Revolve Group Business Overview & Revenue Model

Company DescriptionRevolve 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 MoneyRevolve 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 Key Performance Indicators (KPIs)

Any

Total Active Customers

Total Active Customers
Measures the number of customers who have made a purchase within a specific period, showing customer engagement and the potential for repeat business.

Chart InsightsRevolve Group's active customer base has shown consistent growth, reaching 2.74 million by mid-2025. This upward trend aligns with the company's strategic focus on international expansion and leveraging AI for enhanced customer experiences. The earnings call highlights robust revenue growth and improved operational efficiencies, contributing to this customer growth. Despite challenges like tariff pressures and a higher tax rate, Revolve's focus on owned brands and technological innovations has bolstered its competitive position, suggesting continued momentum in expanding its customer base.

Data provided by:

Main Street Data

Revolve Group Earnings Call Summary

Earnings Call Date:Aug 05, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

Revolve showcased strong financial performance with significant revenue growth, particularly in international markets, and impressive cash flow generation. While the company successfully mitigated many of the negative impacts from tariffs, challenges such as a decrease in average order value and increased tax rates were noted. However, the positive highlights, including the growth of owned brands and advancements in AI, suggest a strong strategic positioning.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Net sales increased by 9% year-over-year, marking the first time quarterly revenue surpassed $300 million.

Significant Free Cash Flow Generation

Generated $52 million in free cash flow in the first half of 2025, nearly triple the free cash flow for the full year of 2024.

International Market Expansion

International net sales increased by 17% year-over-year, with China being a notable market where sales have more than doubled over the past two years.

Owned Brands Growth

Owned brand net sales growth has outpaced overall growth for five consecutive quarters, contributing positively to gross margins.

Enhanced Gross Margin

Delivered a slight increase in gross margin year-over-year despite tariff pressures, supported by successful tariff mitigation efforts.

AI and Technology Advancements

Implemented new AI search algorithms that improved conversion rates, and invested in AI across various company operations, including customer service and marketing.

Negative Updates

Tariff Challenges

Faced significant uncertainty and expenses due to tariffs, although mitigated to some extent, leading to a complex operating environment.

Decrease in Average Order Value

Average order value decreased by 2% year-over-year, primarily due to a shift in product mix.

Increased Tax Rate

The effective tax rate increased to 33.7% from 25.7% in the prior year, affecting net income.

Other Income Decrease

A significant $7.2 million year-over-year decrease in other income due to foreign currency exchange losses and a noncash charge related to the disposal of a subsidiary.

Company Guidance

During Revolve's second-quarter 2025 earnings call, the company reported a 9% year-over-year increase in net sales, with adjusted EBITDA rising by 12% and achieving the highest adjusted EBITDA margin in three years. The company generated $52 million in free cash flow in the first half of 2025, nearly tripling the free cash flow from the entire year of 2024. International net sales saw a robust 17% growth, with significant contributions from China. Owned brand sales, contributing to higher margins, continued to outpace overall growth. Despite tariff pressures, Revolve successfully mitigated a significant portion, leading to a slight increase in gross margin. The company also highlighted a decrease in product return rates by more than 1.5 percentage points, leveraging 60 basis points in variable cost line items. Cash and equivalents reached an all-time high of $311 million, marking a 27% increase year-over-year. Looking forward, Revolve anticipates gross margins between 52.1% and 52.6% for full-year 2025, reflecting positive impacts from tariff mitigation and strategic investments in AI and physical retail.

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

Positive

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

Positive

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

Positive

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

Negative

Last Price22.06

Price Trends

50DMA

21.97

Positive

100DMA

21.27

Positive

200DMA

24.19

Negative

Market Momentum

MACD

0.17

Positive

RSI

44.01

Neutral

STOCH

13.89

Positive

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 22.06 is below the 20-day moving average (MA) of 23.09, above the 50-day MA of 21.97, and below the 200-day MA of 24.19, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 13.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RVLV.

Revolve Group Risk Analysis

Revolve Group disclosed 64 risk factors in its most recent earnings report. Revolve Group reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Revolve Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	76 Outperform	$1.62B	35.05	10.36%	―	10.68%	37.84%
SBH	73 Outperform	1.53B	8.36	25.43%	―	-0.38%	35.78%
SVV	73 Outperform	2.05B	64.51	6.88%	―	4.47%	-8.19%
TDUP	63 Neutral	1.17B	-18.75	-94.46%	―	-10.39%	14.92%
WINA	61 Neutral	1.74B	43.64	-78.27%	2.27%	0.98%	1.84%
EYE	54 Neutral	2.25B	-149.97	-1.66%	―	-7.25%	82.63%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

RVLV

Revolve Group

22.06

-2.72

-10.98%

SBH

Sally Beauty

15.51

1.94

14.30%

WINA

Winmark

502.49

129.91

34.87%

EYE

National Vision Holdings

27.40

16.49

151.15%

TDUP

thredUP

9.31

8.47

1008.33%

SVV

Savers Value Village Inc.

13.27

2.75

26.14%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 25, 2025