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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