Bull of the Day: Revolve Group (RVLV)

Revolve Group (RVLV), a Zack Rank #1 (Strong Buy), is a digital fashion retailer built around a curated, trend-forward online shopping experience largely aimed at Millennial and Gen-Z consumers.

Revolve is primarily an e-commerce destination that blends shopping with lifestyle and content, using influencer and social media marketing and data-driven merchandising to attract and engage its audience.

The stock recouped most of its 2025 losses in the final month of the year, though early 2026 has seen modest selling pressure. Investors should watch key technical levels and upcoming earnings as potential catalysts for a longer-term opportunity.

About the Company

Revolve Group was founded in 2003 and is headquartered in Cerritos, California. The company operated under the name Advance Holdings, LLC before rebranding as Revolve Group, Inc. in October 2018.

The company operates two main online platforms. REVOLVE, which offers a wide assortment of premium apparel, footwear, beauty, accessories, and home products from both emerging and established brands, and FWRD, which focuses on higher-end and luxury fashion.

RVLV is valued at $2 billion and has a Forward PE of 33. The stock has Zacks Style Scores of “C” in Value, but “A” in Growth.

Q3 Earnings Beat

Revolve delivered a strong Q3 earnings, beating expectations by 118%. This was the 8th straight EPS beat and the second largest beat during that stretch.

The quarter was driven by margin performance, even as revenue came in below expectations. The bottom line reflected a nearly 350 basis point year over year expansion in gross margin to 54.6%. That margin strength powered an 11% increase in gross profit and a 45% jump in adjusted EBITDA to $25.3 million, the company’s highest ever for a third quarter.

Active customers reached 2.75 million, up 5% year over year, while management raised full year 2025 gross margin guidance to 53.5%, well above prior expectations. Free cash flow more than tripled through the first nine months of the year, adding $63 million to cash and lifting the balance to $315 million.

Management emphasized that Revolve is gaining competitive advantage in a challenging retail and tariff environment, supported by data driven merchandising, growing its own brand penetration, and improving marketing efficiency.

International momentum remained a standout, led by 50% year over year growth in mainland China alongside strong results in Europe and the Middle East.Looking ahead, the company plans to reinvest its strong cash flow into international expansion, new owned brands, AI driven efficiencies, and selective physical retail initiatives.

Estimates Tick Higher

Revolve is a smaller company still so there is not a lot of analyst coverage on the name. However, estimates have been ticking higher from the analysts that do cover the name.

Over the last 90 days, we have seen improvement in earnings estimates across all time frames.

For the current quarter, numbers have been taken up 45%, going from $0.11 to $0.16.

For the current year we see a 44% jump, going from $0.52 to $0.75.

And for next year, estimates have gone from $0.62 to $0.82, or 33%.

Revolve Group, Inc. Price and Consensus

Revolve Group, Inc. price-consensus-chart | Revolve Group, Inc. Quote

KeyBanc maintains an Overweight rating and a $35 price target, citing Revolve’s higher income customer base, expanding own brands and categories, and disciplined focus on margin protection.

Analysts note that recent rightsizing initiatives and positive comparable trends have driven a period of operational outperformance. At roughly 16.7x 2027E EV EBITDA and 1.3x EV sales, RVLV trades at what many view as an attractive valuation given strengthening revenue growth and continued margin expansion, supporting confidence in the company’s longer term investment thesis.

The Technical Take

Revolve struggled for most of 2025, but closed out the year close to highs. Recently, the stock has pulled back in sympathy with the overall market. This drop might provide investors with a solid long-term entry, so let’s look at some levels of interest.  

Let us look at those moving averages  

21-day: $30.00 (current resistance)

50-day: $28.15 (recently failed to hold)

200-day: $23.00 (Long-term support)

Along with those moving averages there are some Fibonacci levels to watch.

At $26, is the halfway back or 50% retreatment. While at $24.65, we have the 61.8% retrace.

These levels should be monitored for support and when confirmed, investors can enter for a longer-term break out.

In Summary

Revolve Group is executing well in a challenging retail environment, with expanding margins, improving cash flow, and consistent earnings outperformance. While revenue growth remains measured, disciplined cost controls, growing own brand penetration, and accelerating international momentum are driving meaningful profitability gains.

With estimates moving higher, a Zacks Rank #1 rating, and shares pulling back from recent highs alongside the broader market, RVLV is shaping up as an attractive longer-term opportunity for investors.

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This article originally published on Zacks Investment Research (zacks.com).

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