Revolve Q3 sales beat consensus on order growth

Overview

• US fashion retailer's Q3 sales rose 20%, beating analyst expectations

• Adjusted EBITDA for Q3 beat analyst expectations

• Q3 net income and EPS declined year-over-year, partly due to prior insurance recovery

Outlook

• Company sees Q4 2026 gross margin between 52.3% and 52.8%

• Revolve forecasts FY 2026 gross margin of 53.9% to 54.0%

• Company cites macroeconomic and cost pressures as potential headwinds to consumer spending

Result Drivers

• CUSTOMER GROWTH - Co said 18% increase in active customers year-over-year fueled sales growth

• ORDER VOLUME AND RETURNS - Co said 19% rise in orders and reduced product return rate drove net sales, offset by lower average order value

• MARKETING INVESTMENT - Co said higher marketing spend supported growth initiatives, including new brand launches

Company press release:

Key Details

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 $30.00, about 36.4% above its November 2 closing price of $22.00

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• Nov 3 - Retailer Zalando beats quarterly sales expectations as it taps on AI agents

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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.)