Start here if you're new
what it is
Revolve sells fashion online to Millennial and Gen Z shoppers through REVOLVE and FWRD, then uses influencers to keep you scrolling and buying.
how it gets paid
Last year Revolve made $1.2B in revenue.
why it's growing
Revenue grew 8.5% last year. Fashion stays trend-driven— demand can swing if new designs miss, so sales and earnings can be lumpy quarter to quarter even when the strategy is sound.
what just happened
The last report mattered because EPS came in at $0.26 versus a $0.10 estimate.
At a glance
B balance sheet — gets the job done, barely
45/100 earnings predictability — expect surprises
38.0x trailing p/e — you're paying up for this one
11.0% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
Revolve sells fashion online to Millennial and Gen Z shoppers through REVOLVE and FWRD, then uses influencers to keep you scrolling and buying.
Revolve's edge is attention turned into checkout. It connects millions of consumers with thousands of influencers and more than 1,400 brands, so your next outfit finds you before you go looking for it. That machine helps keep gross margin at 53.6%, which is retail jargon → money left after product costs → so what, the company has room to stay profitable without constant discounting.
How they make money
$1.2B
annual revenue · their business grew +8.5% last year
total revenue
$1.2B
+8.5%
The products that matter
online fashion retail platform
Apparel & Accessories
$1.2B revenue · entire business
it's the whole company today: $1.2B in revenue with 8.5% growth last year. if demand slows or fashion misses stack up, there is no second engine to bail you out.
100% of revenue
higher-margin in-house merchandise
Owned Brands
margin lever · no segment dollars disclosed here
Management points to owned brands as a bigger mix driver. Company-level operating margin (~6.5% in commentary here) sits above net margin (~4.8% in the hero)— different lines on the income statement— so pushing mix up is still the clearest path to more profit dollars even without a standalone owned-brand revenue figure.
profit lever
international and physical retail expansion
Expansion Initiatives
2026 focus · supports $1.28B outlook
international markets and store expansion are part of the push from roughly $1.21B in 2025 to roughly $1.28B in 2026. that's useful, but it also means more spending before the margin benefit fully shows up.
execution bet
Key numbers
38.0x
trailing p/e
P/E → how many dollars you pay for one dollar of profit → so what, you are paying up for a retailer with a 4.8% net margin.
53.6%
gross margin
Gross margin → sales left after product costs → so what, Revolve has room to absorb markdowns better than weaker retailers.
11.0%
return on capital
Return on capital → profit produced from the money used in the business → so what, Revolve is decent, not elite.
$43
18-month target
That target is 42% above $30.37, which tells you the upside case needs investors to keep paying a premium multiple.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- net profit margin 4.8% — keeps 5 cents of every dollar in revenue
- return on equity 11% — $0.11 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in RVLV 3 years ago → it's now worth $12,690.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
The last report mattered because EPS came in at $0.26 versus a $0.10 estimate.
That is a 160% surprise, backed by pricing discipline, shallower markdowns, and a higher mix of owned brands. Gross margin was 53.6%, which matters because margin held while revenue grew.
$324.4M
quarter revenue
$0.26
eps
53.6%
gross margin
the number that mattered
The 53.6% gross margin is the tell. Gross margin → what is left after product costs → so what, it shows Revolve did not have to buy growth with heavy discounting.
-
revolve group likely closed 2025 with respectable fourth-quarter results.we estimate sales of about $304 million in the december period, up modestly from a year earlier, with earnings rising to roughly $0.21 per share, from $0.17.
-
profitability was probably supported by continued pricing discipline, shallower markdowns, and a higher mix of owned brands.management also indicated that tariff-mitigation efforts remained effective in the third quarter, helping limit cost pressure despite an unsettled trade environment.
-
financial results should remain relatively steady across 2026.we expect sales to reach roughly $1.28 billion and earnings of $0.85 per share this year, up from an estimated $1.21 billion and $0.80 in 2025. marketing spending is set to rise as the company supports new brand launches, physical retail expansion, and international growth initiatives, which could cap near-term margin gains. at the same time, owned brands should make up a larger share of sales, and international markets — particularly europe and the middle east—continue to grow faster than the domestic business.
-
overall, progress is likely to be gradual.revolve’s long-term prospects appear generally favorable, but are less predictable than in more stable retail categories. the company is gradually expanding owned brands, beauty, international operations, and physical retail, which together should broaden the business and support earnings growth over time.
-
the balance sheet is also healthy.at the same time, fashion remains inherently trend-driven, and demand can shift quickly if new designs fail to resonate, creating periodic swings in sales and earnings, even when the overall strategy is sound.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is fashion demand and markdown pressure. RVLV only kept 4.8% of revenue as net profit last year, so a few bad merchandising calls can do more damage than the headline revenue number suggests.
med
fashion misses force markdowns
This is a trend-driven business selling discretionary apparel to younger shoppers. If product misses or demand softens, the usual fix is discounting — and discounting hits a 6.5% operating margin business fast.
100% of the $1.2B revenue base runs through the same fashion engine. There is no defensive segment to offset a weak season.
med
premium multiple, average predictability
The stock trades at 38.0x trailing earnings with a 45/100 earnings predictability score. That's an awkward mix. You're paying up for a business the data itself says can surprise you.
If EPS stalls near $0.80–$0.85 while the multiple compresses, valuation can do the damage even if the company stays profitable.
med
expansion spending outruns the payoff
Physical retail, international growth, and brand launches can widen the customer base. They also cost money now. Management is already signaling higher marketing spend in 2026.
The 2026 setup is roughly $1.28B in revenue and $0.85 EPS. If sales growth arrives without margin improvement, the stock loses the one thing justifying its premium.
med
litigation and regulatory noise
The page references ongoing litigation, including antitrust claims, but gives limited detail. That means you should treat it as a real overhang without pretending we have precision the snapshot does not provide.
This is the kind of risk that can pressure sentiment before it shows up in reported operating numbers.
combined, these risks put a premium multiple on top of a 10/100 price stability profile. when the business is this margin-sensitive, small operating misses can create large stock moves.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
operating margin above 6.5%
This is the cleanest scoreboard for the thesis. If owned brands and pricing discipline are real, margin should move up from 6.5%, not sideways.
earnings
next quarterly print
You want to see whether the latest 4% quarterly revenue growth accelerates and whether EPS keeps outrunning sales.
trend
owned-brand mix
Management keeps pointing to owned brands as the margin lever. If that mix rises but profitability does not, the story needs a rewrite.
risk
marketing and expansion spend
More stores, more international, more brand launches all sound good. You should care whether those dollars turn into better EPS or just more activity.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they like the setup more than the average stock.
risk profile
below average
stability score 4 — this stock has been more volatile than most. not a bunker stock.
chart momentum
average
technical score 3 — the chart is not sending a dramatic signal either way.
earnings predictability
45 / 100
earnings can be harder to model here than in steadier retail categories. expect some noise.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 106 buyers vs. 101 sellers in 3q2025. total institutional holdings: 48.0M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$20
$65
$30
current price
$43
target midpoint · +42% from current · 3-5yr high: $55 (+80% · 16% ann'l return)
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