Revolve Group reports 20 percent net sales increase in third quarter

Online retailer Revolve Group has reported net sales of 355.96 million dollars for the third quarter ended September 30, 2026, representing an increase of 20 percent compared to 295.63 million dollars in the prior-year period.

Top-line momentum was supported by an 18 percent expansion in active customers over the trailing 12 months to 3.24 million. Total orders placed advanced 19 percent to 2.75 million, which offset a 5 percent decline in average order value to 292 dollars.

Net income fell 27 percent year-over-year (YoY) to 15.52 million dollars, down from 21.18 million dollars in the third quarter of 2025. The prior-year comparative period benefited from a 4.50 million dollar pre-tax insurance recovery.

Segment and regional performance across divisions

Top-line gains remained balanced across the group’s core segments. Net sales at the Revolve brand grew 20 percent YoY to 306.76 million dollars. Net sales for luxury division Fwrd also rose 20 percent to 49.20 million dollars.

Geographically, domestic sales advanced 20 percent to 277.37 million dollars. International net sales expanded 22 percent YoY to 78.59 million dollars, representing the fastest pace of regional growth during the quarter.

Gross profit climbed 19 percent to 191.80 million dollars. Gross margin contracted by 75 basis points YoY to 53.9 percent, compared with 54.6 percent in the third quarter of 2025.

Operating margins and full-year outlook

Revolve co-founder and co-chief executive officer Michael Mente highlighted investments in brand building, physical retail expansion, and key partnerships. These initiatives included the launch of physical retail label Revolve Los Angeles; inaugural publication ‘Revolve Magazine’; a new joint venture with Donatella Versace; and expanded partnerships with Kendall Jenner and Dwyane Wade.

Adjusted EBITDA slipped 7% YoY to 23.49 million dollars from 25.35 million dollars. Diluted earnings per share stood at 0.20 dollars, compared to 0.29 dollars in the third quarter of 2025.

October net sales expanded by a mid-teen percentage YoY, though management noted that comparisons for November and December will become more difficult. For the full year 2026, the company expects gross margin between 53.9 percent and 54 percent.