Abstract

Revolve Group, LLC is scheduled to report fiscal fourth quarter results on February 24, 2026 Post Market, with consensus pointing to accelerating year-over-year growth in revenue and earnings off an improving operating base.

Market Forecast

Consensus for the fiscal fourth quarter anticipates revenue of $306.24 million, implying year-over-year growth of 8.03%. Forecast adjusted EPS is expected at $0.17, up 71.20% year over year, with EBIT projected at $14.87 million, a 102.16% gain year over year, indicating improving operating leverage. Forecasts for gross margin and net margin are not disclosed, though the step-up in EBIT and EPS expectations suggests a more favorable mix and expense discipline versus the prior-year period. Within its commerce mix last quarter, apparel and dresses remained the primary demand pillars, while accessories and beauty continued to broaden purchase occasions and order economics; the outlook for this quarter centers on sustaining demand across these core categories with disciplined promotions and effective conversion. The most promising revenue contribution among subcategories appears to be handbags, shoes, and accessories at $57.86 million last quarter, supported by its attachment potential and cross-sell synergy; year-over-year subcategory growth was not disclosed.

Last Quarter Review

In the prior reported quarter, Revolve Group, LLC delivered revenue of $295.63 million (+4.41% year over year), a gross profit margin of 54.63%, GAAP net profit attributable to the parent of $21.18 million, a net profit margin of 7.16%, and adjusted EPS of $0.29 (+93.33% year over year). One notable highlight was profitability upside: EBIT of $20.99 million exceeded the consensus estimate by $11.04 million, and adjusted EPS of $0.29 topped the $0.12–$0.13 region implied by prior expectations by roughly $0.17, reflecting operating leverage and disciplined spending. Main business performance showed a balanced revenue structure: fashion apparel contributed $128.80 million, dresses $91.17 million, handbags/shoes/accessories $57.86 million, beauty products $12.35 million, and other $5.46 million; year-over-year breakdowns by subcategory were not disclosed, though the composition points to a broadening purchase mix beyond core apparel.

Current Quarter Outlook (with major analytical insights)

Main business: apparel and dresses momentum into holiday and event-driven demand

The core of Revolve Group, LLC’s model is repeatable, curated merchandise that drives full-price sell-through and engagement, and the fiscal fourth quarter historically captures peak holiday traffic and gifting demand. With consensus revenue growth of 8.03% and EBIT growth of 102.16% year over year, the setup implies improved conversion against a normalized promotional backdrop and more efficient paid marketing relative to last year’s baseline. Last quarter’s 54.63% gross margin indicates healthy merchandise economics; sustaining a similar profile while delivering revenue growth would point to less discount drag in Q4, likely supported by tighter inventory buys and well-timed newness. The apparel and dresses categories are critical to traffic and repeat purchase frequency, and they typically carry solid merchandise margins when sold at or near full price. Holiday selling introduces volatility around discount cadence, yet the consensus mix of higher EBIT and EPS favors a scenario where discounts are targeted and sell-through is supported by product newness and influencer/creator-led demand. Operationally, the company’s ability to manage return rates, maintain strong availability in marquee styles, and capitalize on event calendars will shape both revenue capture and margin resilience this quarter. Assortment discipline should continue to matter: exiting Q3 with disciplined inventory and a cleaner mix positions the business to lean on conversion rather than broad-based markdowns. If the company continues to focus on high-velocity capsules and drops, the apparel and dress lines can sustain momentum without eroding margins, consistent with the forecasted operating leverage embedded in EBIT and EPS expectations. Put together, the core apparel and dresses business looks set to underpin the quarter’s revenue and earnings trajectory if demand elasticity remains favorable under a tighter promotional framework.

Most promising business: handbags, shoes, and accessories as ticket-size and attach-rate enhancers

Handbags, shoes, and accessories delivered $57.86 million in the previous quarter, and the category’s economics typically make it a compelling profit contributor due to higher attach rates and the ability to raise basket value without meaningfully increasing acquisition costs. Accessories can be paired with event-driven apparel purchases, which is relevant in holiday selling when gifting and self-purchase converge; this dynamic can lift both average order value and units per transaction. With marketing and logistics largely shared across the platform, accessory sell-through provides natural operating leverage, fitting the quarter’s consensus profile that points to a more than doubling of EBIT year over year. Seasonally relevant footwear, occasion-ready handbags, and giftable accessory assortments tend to align with fourth-quarter behavior, supporting both revenue and margin contribution if markdown intensity stays controlled. The near-term swing factor for this category is sell-through pacing versus inbound receipts: if curation and timing are aligned, accessory inventory can turn quickly while preserving margin dollars. Successful cross-merchandising on product detail pages and in targeted marketing emails can further amplify attachment, limiting incremental customer acquisition costs and bolstering EBIT. From a retention standpoint, accessories can deepen engagement by encouraging multi-item carts and a broader style discovery experience, which can pay off in subsequent quarters through repeat behavior. As long as return rates in footwear remain consistent with expectations and last-mile delivery costs remain stable, the accessory category’s contribution should support the overall margin framework indicated by the consensus EPS and EBIT growth figures for the quarter.

Stock price swing factors this quarter

The main share-price variables around the fiscal fourth quarter print are revenue acceleration versus expectations, the quality of gross margin, and the implied efficiency in customer acquisition and overhead that flows through to EBIT and EPS. On the top line, markets will scrutinize whether late-quarter demand captured holiday traffic without relying on broad, margin-dilutive promotions; consensus embeds 8.03% year-over-year growth, so any deviation will be closely watched. Conversion dynamics—click-through rates, add-to-cart rates, and the balance between paid and organic traffic—will be key to reading the sustainability of revenue gains into the first quarter. On profitability, investors will parse the relationship between gross margin execution and marketing spend efficiency. If marketing dollars per new customer trend lower while repeat cohorts remain healthy, EBIT can expand faster than revenue, consistent with the 102.16% year-over-year EBIT growth embedded in forecasts. Conversely, if discounting or return activity ran higher than planned, gross margin could be pressured, which would show up in EPS versus the $0.17 expectation. The cadence of overhead growth relative to revenue—particularly technology, fulfillment, and personnel—will determine how much of the top-line beat, if any, translates into operating profit. Looking beyond the quarter’s print, management’s color on early first-quarter demand, inventory position, and promotional posture will influence how investors extrapolate Q4 performance. Commentary on active customer trends, average order value, and the pace of new brand and private-label introductions will help frame whether the earnings inflection suggested by consensus is building or ephemeral. Management guidance around expense run-rate, particularly in paid marketing and logistics, will also influence valuation inputs immediately after the report.

Analyst Opinions

The majority of recent institutional views trend bullish in the current review window, with two Buy ratings and no newly published bearish calls identified. BTIG reiterated a Buy rating with a $30.00 price target, signaling confidence that revenue growth and margin execution are improving into the fiscal fourth quarter; this stance is consistent with the sharp year-over-year gains embedded in the consensus EPS and EBIT forecasts. KeyBanc also maintained a Buy rating, which aligns with an outlook that the company’s merchandising, marketing performance, and expense control can sustain the revenue and profit reacceleration reflected in estimates. Across these bullish opinions, the core thesis centers on the combination of accelerating revenue growth off a stabilizing demand base and better operating leverage as marketing and overhead normalize against last year’s levels. Consensus for a 71.20% year-over-year increase in adjusted EPS and a 102.16% rise in EBIT points to a more efficient P&L structure alongside top-line growth, a pattern that typically attracts favorable revisions if delivered. Analysts also point to the model’s cash conversion characteristics under a controlled inventory posture, which can support reinvestment in product newness and customer experience—two levers that, if executed well, can further reduce reliance on promotions and underpin gross profit dollars. The bullish case further emphasizes the role of category breadth in supporting basket economics: accessories as attach-rate enhancers and beauty as a replenishment-led category can improve repeat engagement without requiring equivalent marketing spend per order. With last quarter’s segment composition—$128.80 million in apparel, $91.17 million in dresses, and $57.86 million in handbags/shoes/accessories—analysts expect diversified demand to carry into holiday, reducing single-category concentration risk as long as curation and availability remain tight. In this context, the absence of explicit gross margin guidance is less problematic to bulls, given the implied operating leverage in consensus figures and the evidence of discipline from last quarter’s results. These supportive stances ultimately hinge on execution through the holiday cycle: targeted promotions, efficient customer acquisition, and clean inventory remain the near-term catalysts for upside. If Revolve Group, LLC matches or exceeds the $306.24 million revenue and $0.17 adjusted EPS bar with constructive qualitative commentary on early first-quarter trends, bulls anticipate positive estimate revisions and a constructive reaction, consistent with their Buy ratings and stated price targets.