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Investing.com -- Revolve Group , Inc. (NYSE:RVLV) reported second-quarter revenue that exceeded analyst expectations, sending shares up 3.8% as the fashion retailer demonstrated resilience amid macroeconomic uncertainties.
The next-generation fashion retailer for Millennial and Generation Z consumers posted revenue of $308.97 million for the quarter ended June 30, 2025, beating the consensus estimate of $297.91 million and representing a 9% increase YoY. Earnings per share came in at $0.14, matching analyst expectations.
"We delivered strong second quarter results, highlighted by 9% growth in net sales year-over-year, 10% growth in operating income year-over-year, our highest Adjusted EBITDA margin in three years, and our highest operating cash flow for any second quarter in the past four years," said co-founder and co-CEO Mike Karanikolas.
The company’s active customers grew 6% YoY to 2.74 million, while total orders placed increased 7% to 2.42 million. Average order value declined slightly by 2% to $300. Gross margin improved marginally to 54.1% from 54.0% in the same quarter last year.
Revolve’s domestic net sales rose 7% to $241.6 million, while international sales showed stronger growth, jumping 17% to $67.3 million. The REVOLVE segment saw 9% growth to $268.4 million, and the FWRD segment increased 10% to $40.6 million.
Net income fell to $10 million from $15.4 million in the second quarter of 2024, primarily due to a $7.2 million swing in other expense/income and an increased effective tax rate of 33.7%.
Looking ahead, Revolve updated its full-year 2025 outlook, raising its gross margin guidance to 52.1%-52.6% from the previous 50.0%-52.0%. For the third quarter, the company expects gross margin between 51.2% and 51.7%.
The company reported that net sales in July 2025 increased approximately 7% YoY, suggesting continued momentum into the third quarter.
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