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Revolve Group's Q1 2026 Financial Overview

Revolve Group, Inc. (NYSE: RVLV), a leading fashion retailer targeting Millennial and Generation Z consumers, has released its outstanding financial results for the first quarter of 2026, which concluded on March 31. The company showed significant growth across various metrics, with net sales rising 16% year-over-year to hit $342.9 million. This achievement reflects the successful execution of the company's strategies amidst a dynamic market environment.

Key Financial Highlights

According to Mike Karanikolas, co-founder and co-CEO, the company experienced remarkable results due to the team's excellent performance and commitment. Specific highlights include:

• - Earnings Per Share (EPS): Grew by 25% year-over-year, reaching $0.20, compared to $0.16 in the preceding year.
• - Operating Cash Flow: Increased to $49 million, allowing for a strengthened financial position.
• - Active Customers: Rose to 2.9 million, marking an 8% increase year-on-year, the highest growth rate in over two years.

Michael Mente, co-founder and co-CEO, emphasized the company's focus on long-term initiatives such as international expansion and AI technology deployment, which have been critical in propelling the business forward.

Business Developments

The quarter also saw several exciting developments:
1. Launch of REVOLVE Los Angeles: This is the company's first namesake label, which is a part of its broader strategy to enrich its product portfolio.
2. Collaboration with Cardi B: The introduction of Grow-Good Beauty hair care products in partnership with the Grammy-winning artist was a runaway success, selling out in under an hour. The brand's Instagram follower count skyrocketed to over 640,000 shortly after launch.
3. Retail Expansion: Revolve has signed a lease for its third retail location in Miami, targeting a key U.S. market with plans to open by the end of 2026.
4. International Growth: The company's international sales grew 20% year-over-year, further showcasing its expanding global footprint.

Comprehensive Financial Performance

The detailed performance for Q1 2026 shows significant improvements across various financial metrics:

• - Gross Profit: Rose by 17% to $180.6 million, signaling effective cost management and strong sales.
• - Gross Margin: Stood at 52.7%, reflecting growth primarily in the FWRD segment.
• - Fulfillment Costs: Managed efficiently at 3.1% of net sales, demonstrating operational effectiveness.
• - Market-Specific Growth: Domestic sales rose to $274 million, while international sales reached $68.9 million.

Despite demanding market conditions, Revolve's proactive approach to innovation and customer engagement has facilitated this remarkable growth trajectory. The company continues to invest in marketing and product development, underpinning its commitment to enhancing brand awareness and market penetration.

Future Outlook

Looking ahead, Revolve has outlined a promising outlook for the remainder of 2026 despite anticipated macroeconomic challenges. The company remains optimistic and anticipates steady growth as it navigates through potential consumer spending headwinds. The FY 2026 guidance indicates a gross margin target between 53.5% to 54.0% and ongoing investments in marketing that align with their growth strategy.

In summary, Revolve Group's first-quarter results showcase a solid foundation for future endeavors, emphasizing innovation, strategic partnerships, and customer engagement as pivotal components of its growth narrative. The brand's trajectory suggests that with continued focus on product quality and market relevance, Revolve is well-positioned for sustained success in the increasingly competitive retail landscape.

For more detailed information and continuous updates, interested stakeholders can access the full report on Revolve's investor relations website.