Revolve Group (RVLV) Company Report

Revolve reported strong Q3 results with significant margin growth, primarily driven by tariff mitigation efforts and AI-driven improvements in merchandise assortment algorithms.
The company observed Q4 trends re-accelerating towards mid-single digits on a two-year stack, with positive consumer behavior noted during the holiday period.
Revolve is expanding its omnichannel presence with physical stores, including a successful Aspen location and a soon-to-open store at The Grove in Los Angeles, which has shown to attract new customers and benefit online sales.
Key priorities for 2026 include further investment in physical stores, continued innovation in marketing and own brand launches (e.g., SRG, Halo, Cardi B partnership), and ongoing investments in technology and AI.

Dec 12, 2025, 6:40 PM

Transcript

Revolve Discusses Strong Q3 Margins, Q4 Revenue Re-acceleration, and 2026 Priorities

RVLV

New Projects/Investments

Revenue Acceleration/Inflection

Product Launch

Revolve reported strong Q3 margins and profitability, with year-over-year margin growth of nearly 300 basis points, attributed to tariff mitigation, improved AI-powered merchandise algorithms, and healthier inventory levels.
Q4 quarter-to-date trends through October showed revenue re-acceleration towards mid-single digits on a two-year stack, and the company is encouraged by holiday period performance.
The company is heavily investing in AI and technology, which has already driven double-digit gains in areas like internal search and marketing, and is a core part of its competitive advantage.
Key priorities for 2026 include expanding physical stores (e.g., The Grove in Los Angeles), continued marketing innovation through own brand launches and celebrity partnerships (e.g., Sophia Richie Grainge, Cardi B), and further investments in technology and AI.
The Forward luxury segment achieved mid-40s gross margins in Q3, considered sustainable, and the China market for Revolve Mainland grew approximately 50% year-over-year in Q3.

Dec 12, 2025, 6:40 PM

Transcript

Revolve Reports Strong Q3 2025 Margins, Highlights AI Impact, and Outlines 2026 Priorities

RVLV

Revenue Acceleration/Inflection

New Projects/Investments

Revolve reported strong margins and solid profitability in Q3 2025, achieving close to 300 basis points year-over-year margin growth driven by tariff mitigation efforts, AI-driven merchandise assortment algorithms, and a healthier inventory position. The company also saw double-digit gross profit gains and an acceleration on a two-year stack in growth rate in Q3, with further acceleration into Q4.
AI is a foundational strength for Revolve, contributing to significant improvements such as merchandise assortment algorithms that reduced markdowns, a proprietary AI-based search algorithm that outperformed third-party solutions, and AI-based marketing features. The company plans continued investments into technology and AI as a core competitive advantage.
International business, currently around 20% of total business, is seen as untapped ground with significant potential. China Mainland demonstrated strong momentum with approximately 50% year-over-year growth in Q3 2025, supported by increased investments and successful new marketing efforts, including a scalable livestream.
Key priorities for 2026 include the expansion of physical stores, following the success of the Aspen location and the upcoming store at The Grove in Los Angeles, continued innovation and expansion in marketing through brand launches and partnerships, and further investments in technology and AI.

Dec 12, 2025, 6:40 PM

Transcript

Revolve Group's FWRD Appoints Fashion Director and Reports Strong Q3 2025 Performance

RVLV

Management Change

New Projects/Investments

Revenue Acceleration/Inflection

FWRD, a division of REVOLVE Group, Inc., has appointed Rosie Huntington-Whiteley as its Fashion Director, responsible for fashion curation, merchandising, and seasonal strategy.
The company reported continued top-line growth and a 37% year-over-year increase in gross profit dollars in Q3 2025 compared to the same period in 2024.
FWRD's personal shopping program achieved over 100% year-over-year sales growth through the first nine months of 2025.
Strategic investments in owned brands, physical retail, merchandising, and client experiences are driving sustained growth and deepening consumer engagement.

Dec 8, 2025, 4:13 PM

Press Release

RVLV CFO Discusses Growth Drivers, Margin Expansion, and Capital Allocation at Barclays Conference

RVLV

New Projects/Investments

Guidance Update

Share Buyback

RVLV maintains a strong balance sheet with over $300 million of cash and no debt, and $60 million in TTM free cash flow, enabling investment in organic growth, opportunistic M&A, and a buyback plan.
The company is optimistic about its physical retail strategy, with the Aspen store performing well and The Grove in LA opening soon, expecting new customer acquisition, lower return rates, and strong performance for own brands.
RVLV targets a 55% gross margin (up from the FY25 guide of 53.5%), driven by healthy inventory, markdown algorithm optimization, promotional strategy shifts, and an increasing mix of own brands, which were 18% of the Revolve segment in 2024.
The company is leveraging AI for significant operational improvements, including an internal search algorithm that has driven significant conversion gains, intelligent inventory placement, and quicker iterations in own brand design.
International expansion, particularly in China, shows robust growth, with Revolve mainland China sales up 50% year over year in the past quarter, supported by a dedicated team and exclusive in-country own brand launches.

Dec 4, 2025, 4:15 PM

Transcript

Revolve Group Inc. CFO Discusses Growth Strategies, AI, and Financial Outlook at Barclays Conference

RVLV

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

Revolve maintains a strong financial position with over $300 million in cash and no debt, generating $60 million in TTM free cash flow. The company's capital allocation strategy prioritizes organic growth, opportunistic M&A, and a share buyback plan.
The company is focused on strategic growth initiatives including expanding its physical retail footprint, with the upcoming opening of The Grove store in LA, which is expected to be accretive through new customer acquisition, lower return rates, and higher own brand performance.
Revolve is leveraging AI across various functions, from customer-facing search algorithms that have driven significant conversion gains to back-office efficiencies like inventory placement and marketing optimization.
The company anticipates a 55% gross margin (up from about 53.5% in FY 2025) and aims to return to double-digit EBITDA margin, primarily driven by an increased own brand mix and G&A leverage.
International expansion is a key growth area, with Revolve mainland China sales doubling over the last few years and increasing 50% year over year in the past quarter.

Dec 4, 2025, 4:15 PM

Transcript

Revolve Discusses Q3 Gross Margin Expansion and Future Growth Initiatives

RVLV

Revenue Acceleration/Inflection

New Projects/Investments

Share Buyback

Revolve is targeting a double-digit EBITDA margin and a 55% gross margin, with key drivers including expanding owned brand mix and tariff mitigation strategies.
The company achieved 350 basis points of gross margin expansion in Q3, primarily due to an optimized markdown algorithm, increased full-price mix, and reduced promotional activity.
Strategic growth initiatives include a 50% year-on-year net sales growth in the Revolve segment in Mainland China, the upcoming Cardi B joint venture launching in the first half of 2026 with beauty, and the expansion of physical retail with a new store opening at The Grove, LA.
Revolve maintains a strong balance sheet with over $300 million cash and no debt, prioritizing investments in the core business, M&A opportunities, and opportunistic share buybacks.

Dec 3, 2025, 4:45 PM

Transcript

Revolve (RVLV) Discusses Growth Strategies, Margin Expansion, and AI Integration

RVLV

Guidance Update

Product Launch

New Projects/Investments

Revolve is targeting double-digit EBITDA margins and a 55% gross margin, up from the current 53.5% guidance for the fiscal year, primarily driven by an increased owned brand mix and G&A leverage.
Strategic growth initiatives include a Cardi B joint venture launching in H1 2026 (starting with beauty), the upcoming opening of a second physical store at The Grove in LA, and significant investments in AI for customer experience and operational efficiency.
The company reported encouraging Q4 progress, with October showing mid-single-digit growth and a 16%-18% two-year stack. Revolve has largely mitigated tariff impacts, implementing price increases of mid-single digits in Q3 and approaching double digits in Q4.
With over $300 million in cash and no debt, Revolve prioritizes investing in the core business, pursuing opportunistic M&A, and conducting share buybacks.

Dec 3, 2025, 4:45 PM

Transcript

RVLV Outlines Growth Initiatives and Financial Targets at Morgan Stanley Conference

RVLV

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

RVLV is targeting a double-digit EBITDA margin and a 55% gross margin, up from the current fiscal year's guidance of 53.5%, driven by expanding owned brand mix and tariff mitigation strategies.
The company is investing in several growth initiatives, including expanding its owned brand penetration (which was 18% in 2024 and is increasing year-over-year), a new Cardi B joint venture expected in the first half of 2026 starting with beauty, and opening a second physical store at The Grove in LA soon.
RVLV's Revolve business in Mainland China increased 50% year on year, supported by a dedicated team, strategic partnerships, and curated product assortments.
The company is actively leveraging AI across its business, from website personalization and an internal search algorithm to owned brand design, inventory placement, and markdown optimization, noting a nearly 2,000% year-over-year increase in agentic AI referrals.
In Q3, RVLV achieved 350 basis points of gross margin expansion and an 11% gross profit dollar increase, partly due to optimizing its markdown algorithm and reducing promotional cadence.

Dec 3, 2025, 4:45 PM

Transcript

RVLV Reports Strong Q3 2025 Profitability Driven by Gross Margin Expansion

RVLV

Earnings

Guidance Update

New Projects/Investments

RVLV reported a 45% year-over-year increase in Adjusted EBITDA to $25 million for Q3 2025, its highest ever for a third quarter, despite net sales growth of only 4% to $296 million.
This strong bottom-line performance was primarily driven by a significant expansion in consolidated gross margin to 54.6%, an increase of 347 basis points year-over-year, attributed to markdown optimization, a shift in promotional strategy, and an increased mix of owned brands.
The company is actively investing in strategic growth initiatives, including brand building, international expansion (with Revolve segment net sales in Mainland China increasing over 50% year-over-year), owned brands (launching the SRG brand with record sales volume), and physical retail development.
RVLV also reported robust financial health, with free cash flow more than tripling in the first nine months of 2025, increasing its cash position by $63 million, or 25% year-over-year, and maintaining no debt.

Nov 4, 2025, 9:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Revolve Group.

Q3 2025

Nov 4, 2025

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Q2 2025

Aug 5, 2025

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Q1 2025

May 6, 2025

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Revolve Group (RVLV)

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