Revolve Group Stock Earnings Reports

Revolve delivered a strong Q1 2026: net sales grew 16% year-over-year to $343M (its highest growth rate since 2022), diluted EPS rose 25% to $0.20, adjusted EBITDA was $21M (+9% YoY), and operating cash flow was $49M. Cash and cash equivalents increased to $336M at quarter end and the company remains debt-free. Growth was broad-based: REVOLVE +15%, FWRD +17%, domestic +15% and international +20% (13th consecutive quarter international outpacing the U.S.; Mexico notably strong). FWRD gross profit expanded significantly (+36% YoY). Key investments drove higher marketing (15.8% of sales) and G&A (partly from performance-based equity), and inventory rose ~15% to $245M, consistent with sales. Management highlighted strategic, long-term initiatives: launch of the REVOLVE Los Angeles namesake label, the Cardi B joint venture Grow-Good Beauty (sold out on launch, rapid social traction), continued rollout of physical retail (Aspen, The Grove LA, signed Miami lease to open by year-end), and expanded use of generative AI (launched product Q&A on mobile, marketing content creation, virtual styling) which is already showing conversion lifts. Guidance: Q2 gross margin 54.1%–54.6%; FY 2026 gross margin 53.5%–54.0% (midpoint ≈ +25 bps YoY). Marketing is expected to remain elevated (~15.3%–15.8% FY); fulfillment and S&D are broadly in line with prior ranges. Management filed tariff refund claims (started April 20); any recoveries are not baked into current guidance. Return rates improved materially and remain a focus for further reduction.