In a recent analysis, Baird adjusted its price target for Revolve Group (RVLV, Financial), increasing it from $23 to $25 while maintaining a Neutral rating on the stock. This decision follows Revolve's presentation at the Baird Global Consumer, Technology, and Services Conference, where the company's performance and strategies were discussed in detail.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Revolve Group Inc (RVLV, Financial) is $21.87 with a high estimate of $30.00 and a low estimate of $17.00. The average target implies an downside of 3.12% from the current price of $22.57. More detailed estimate data can be found on the Revolve Group Inc (RVLV) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Revolve Group Inc's (RVLV, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Revolve Group Inc (RVLV, Financial) in one year is $25.84, suggesting a upside of 14.49% from the current price of $22.57. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Revolve Group Inc (RVLV) Summary page.
RVLV Key Business Developments
Release Date: May 06, 2025
- Net Sales: $297 million, a 10% increase year over year.
- REVOLVE Segment Net Sales: Increased 11% year over year.
- FWRD Segment Net Sales: Increased 3% year over year.
- Domestic Net Sales: Increased 9% year over year.
- International Net Sales: Increased 12% year over year.
- Active Customers: Increased 6% year over year.
- Total Orders Placed: 2.3 million, a 4% increase year over year.
- Average Order Value (AOV): $295, a 1% decrease year over year.
- Gross Margin: 52%, a decrease of 30 basis points year over year.
- Operating Income: Increased 57% year over year.
- Adjusted EBITDA: $19 million, a 45% increase year over year.
- Operating Cash Flow: $45 million, an 18% increase year over year.
- Cash and Cash Equivalents: $301 million, surpassing $300 million for the first time.
- Inventory: $214 million, a 7% decrease compared to year-end 2024.
- Fulfillment Costs: 3.2% of net sales, a decrease of 32 basis points year over year.
- Selling and Distribution Costs: 16.8% of net sales, a decrease of 106 basis points year over year.
- Marketing Investment: 14.3% of net sales, a decrease of 100 basis points year over year.
- General and Administrative Costs: $37.9 million, an increase of 58 basis points year over year.
- Net Income: $11 million or $0.16 per diluted share, up from $0.15 per diluted share in the first quarter of 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revolve Group Inc (RVLV, Financial) reported double-digit top-line growth with a 10% increase in net sales year over year.
- Operating income grew by 57% year over year, and adjusted EBITDA increased by 45%, showcasing strong profitability.
- The company generated $45 million in operating cash flow, further strengthening its balance sheet with cash and cash equivalents exceeding $300 million.
- Revolve Group Inc (RVLV) successfully reduced its product return rate by nearly 3 percentage points year over year, improving operational efficiency.
- The company is leveraging AI technology to enhance customer service and personalization, including a new AI-powered styling feature to improve consumer engagement.
Negative Points
- Revolve Group Inc (RVLV) faces macroeconomic challenges, including geopolitical uncertainty and significant tariffs impacting the sector.
- Gross margin decreased by 30 basis points year over year, primarily due to lower sales at full price and deeper markdowns.
- The company is experiencing a shift in consumer behavior towards more accessible price points, impacting average order value.
- Tariff exposure remains a concern, with approximately 22% of inventory receipts directly impacted by tariffs, primarily from China.
- Revolve Group Inc (RVLV) has moderated its internal revenue growth expectations for the full year due to the challenging macroeconomic environment.
