• 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.

• Warning! GuruFocus has detected 4 Warning Signs with RVLV.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Revolve Group Inc (NYSE:RVLV) 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 (NYSE: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 (NYSE: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 (NYSE:RVLV) has moderated its internal revenue growth expectations for the full year due to the challenging macroeconomic environment.