Revolve (RVLV) Stock Forecast & Price Target

Revolve Group Inc has demonstrated strong financial performance, highlighted by a mid-single-digit year-over-year increase in October net sales and a significant gross margin expansion of over 150 basis points in 2025 due to lower tariff rates and a strategic focus on owned-brands. The company has achieved impressive gross margins of 56.2% for Revolve and 44.9% for FWRD, reflecting a substantial increase in revenue and efficiency, driven by proprietary pricing strategies and a higher proportion of full-price sales. Additionally, the growth in active customers at 6% in the first halves of 2025 underscores the firm’s ability to enhance its market presence while improving profitability metrics, positioning Revolve favorably in the competitive e-commerce fashion landscape.

Revolve Group Inc is facing significant challenges that contribute to a negative outlook on its stock. Its dependence on marketing expenses, particularly through major internet platforms, raises concerns about the sustainability of driving site traffic as competition increases, potentially leading to higher costs and diminished market share. Additionally, the company's sales and profitability are heavily reliant on the seasonal second quarter, coupled with ongoing supply chain vulnerabilities linked to geopolitical tensions and public health crises, which could adversely affect financial performance.