Overview
Fashion retailer's Q4 revenue grew 10%, beating analyst expectations
Adjusted EBITDA for Q4 rose 44%, exceeding analyst estimates
Company's net income increased 58% yr/yr, driven by sales growth and margin expansion
Outlook
Revolve expects FY 2026 gross margin between 53.7% and 54.2%
Company sees Q1 2026 gross margin between 52.8% and 53.3%
Revolve anticipates FY 2026 marketing expenses at 15.3% to 15.8% of net sales
Result Drivers
BEAUTY SALES - A 43% increase in beauty sales contributed to a shift in product mix, affecting average order value
OPERATING EFFICIENCIES - Co achieved efficiencies in marketing and general administrative expenses, aiding profitability
FWRD MARGIN EXPANSION - Margin expansion in the FWRD segment drove gross margin increase
Company press release: ID:nPn3b8z5Ja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Beat | $324.37 mln | $306.24 mln (14 Analysts) |
Q4 Net Income | $18.55 mln | ||
Q4 Adjusted EBITDA | Beat | $26.26 mln | $19.41 mln (13 Analysts) |
Q4 Gross Margin | 53.30% | ||
Q4 Gross Profit | $172.92 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 $29.50, about 21.4% above its February 23 closing price of $24.30
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 33 three months ago
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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.)