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Investing.com - Evercore ISI raised its price target on Revolve Group (NYSE:RVLV) to $21.00 from $19.00 on Wednesday, while maintaining an "In Line" rating on the fashion retailer’s stock. According to InvestingPro data, RVLV shares have fallen 14.18% in the past week and are currently trading below their Fair Value estimate, suggesting potential upside.
The price target increase follows Revolve Group’s third-quarter EBITDA beat of $25 million versus Street expectations of $14 million, despite a slight revenue miss of $296 million compared to consensus estimates of $298 million. This quarterly performance contributes to Revolve’s trailing twelve-month EBITDA of $66.83 million.
Gross margin significantly outperformed at 54.6% versus Street expectations of 51.5%, with Evercore noting that margin drivers appear "sticky in the near-term" and should result in higher Street estimates for 2026. This outperformance aligns with the company’s strong trailing twelve-month gross profit margin of 52.47%.
Evercore ISI indicated it does not expect the stock to receive a higher valuation without "more visibility into a sales acceleration," noting that sales have decelerated for three consecutive quarters.
The firm highlighted several potential catalysts that could support top-line growth, including partnerships with Cardi B and the Lakers, as well as increased contribution from owned brands, particularly if Revolve reaccelerates marketing spending after trimming it in the third quarter.
In other recent news, Revolve Group LLC reported its third-quarter earnings for 2025, revealing a notable earnings per share (EPS) outcome. The company achieved an EPS of $0.24, significantly surpassing the forecasted $0.08, resulting in a 200% surprise. However, revenue figures were slightly below expectations, with the company reporting $295.63 million compared to the anticipated $297.36 million. Despite the mixed financial results, the stock experienced a decline in after-hours trading. These developments are part of Revolve’s ongoing financial performance updates.
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