Overview
Revolve Group Inc Q3 net sales grow 4% yr/yr, missing analyst expectations
Adjusted EBITDA for Q3 beats analyst expectations, rising 45% yr/yr
Net income for Q3 rises 97% yr/yr, reflecting strong profitability
Outlook
Revolve expects FY 2025 gross margin of 53.5%, up from prior 52.1%-52.6%
Company anticipates Q4 2025 gross margin between 53.1% and 53.6%
Revolve sees FY 2025 marketing expenses at 14.6% of net sales
Result Drivers
GROSS MARGIN IMPROVEMENT - Co attributes 347 basis point increase in gross margin to higher mix of full-price and owned brand sales
DATA-DRIVEN STRATEGY - Co's data-driven merchandising strategy cited as a competitive advantage in improving margins
LONG-TERM INVESTMENTS - Co continues to invest in international expansion, new brands, AI, and retail opportunities, supported by strong cash flow
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $295.63 mln | $297.60 mln (14 Analysts) |
Q3 EPS | $0.29 | ||
Q3 Net Income | $21.17 mln | ||
Q3 Adjusted EBITDA | Beat | $25.34 mln | $13.90 mln (14 Analysts) |
Q3 Gross Margin | 54.60% | ||
Q3 Gross Profit | $161.51 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 $25.00, about 14.8% above its November 3 closing price of $21.30
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 40 three months ago
Press Release: ID:nPn6LL4cXa
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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.)