Revolve Group Reports 9.4% Sales Increase but Declines in Net Income for Q2 2025

Revolve Group, Inc. reported a net sales increase of 9.4% for the second quarter of 2025, reaching $308.97 million compared to $282.46 million in the same period last year. The company's gross profit also rose to $167.06 million, reflecting a gross margin of 54.1%, slightly up from 54.0% in the prior year. However, net income for the quarter decreased to $10.01 million, down from $15.38 million in Q2 2024, resulting in diluted earnings per share of $0.14, compared to $0.21 in the previous year.

For the first half of 2025, Revolve's net sales totaled $605.68 million, a 9.5% increase from $553.04 million in the first half of 2024. The increase in sales was attributed to a 5.3% rise in the number of orders shipped and a lower return rate, although the average order value decreased by 1.3%. The company's operating expenses also increased, with total operating expenses for the first half reaching $288.66 million, up from $268.35 million in the same period last year.

In terms of operational metrics, Revolve reported an active customer count of 2.74 million, an increase from 2.58 million in the prior year. The total number of orders placed rose to 4.73 million in the first half of 2025, compared to 4.49 million in the same period of 2024. The company continues to expand its geographic reach, with international sales contributing 21.8% of total net sales in Q2 2025, up from 20.3% in Q2 2024.

Strategically, Revolve has been focusing on enhancing its brand community and customer engagement through various marketing initiatives, including influencer partnerships and social media campaigns. The company has also authorized a stock repurchase program of up to $100 million for its Class A common stock, which it believes will enhance shareholder value. However, the company faces challenges from increased tariffs on imported goods, particularly from China, which could impact its cost structure and pricing strategies moving forward.

Looking ahead, Revolve Group, Inc. anticipates continued growth but acknowledges the potential impact of macroeconomic conditions, including inflation and consumer spending trends, on its business. The company remains committed to optimizing its inventory management and expanding its product offerings while navigating the complexities of the current retail landscape.