Overview

* Revolve Q2 net sales rise 9% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 rises 12%, beating analyst estimates

* Net income for Q2 falls 35% yr/yr

Outlook

* Revolve expects FY 2025 gross margin of 52.1% to 52.6%

* Company projects Q3 2025 gross margin between 51.2% and 51.7%

* Revolve forecasts FY 2025 fulfillment expenses at 3.1% to 3.2% of net sales

* Company sees Q3 2025 marketing expenses at 14.5% of net sales

Result Drivers

* NET SALES GROWTH - 9% yr/yr increase in net sales driven by higher Owned Brand sales, despite lower full-price sales

* CASH FLOW IMPROVEMENT - Significant increase in cash flow due to higher sales and operational efficiencies, enabling continued investment in growth initiatives

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $308.97 $297.40

mln mln (14

Analysts

)

Q2 EPS $0.14

Q2 Net $10.01

Income mln

Q2 Beat $22.89 $14.90

Adjusted mln mln (14

EBITDA Analysts

)

Q2 Gross 54.1%

Margin

Q2 Gross $167.06

Profit 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 ( RVLV ) is $23.00, about 11.3% above its August 4 closing price of $20.41

* The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release:

(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.)