RVLV

A month has gone by since the last earnings report for Revolve Group (RVLV). Shares have lost about 13.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Revolve Group due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Revolve Group, Inc. before we dive into how investors and analysts have reacted as of late. Revolve delivered a strong second quarter of 2026, marked by broad-based sales growth, accelerating customer acquisition and improved profitability. Double-digit gains across both segments and geographies reflected accelerating customer demand, while a lower return rate and better markdown execution supported margins. The company continued to invest in owned brands, beauty, international expansion and physical retail.Earnings of 26 cents per share increased 85.7% year over year and surpassed the Zacks Consensus Estimate of 20 cents by 30%. Net sales rose 12.4% to $347.4 million and topped the consensus mark of $343 million by 1.2%. Results included a 6-cent-per-share benefit resulting from IEEPA tariff refunds received during the quarter.Demand indicators remained favorable. Trailing 12-month active customers increased 11% year over year to 3.041 million. Total orders grew 11% to 2.701 million. Average order value was $299 compared with $300 a year earlier, with the slight decline reflecting a greater contribution from lower-priced Grow-Good beauty products. Revolve’s segment results underscored the balance of the quarter’s top-line performance. Net sales in the REVOLVE segment rose 13% year over year to $302.5 million, while FWRD net sales increased 11% to $44.9 million. This marked the third consecutive quarter of double-digit growth across both operating segments. Geographically, U.S. net sales climbed 11% year over year to $269.1 million. International net sales grew 16% to $78.4 million and accounted for nearly 23% of total revenues, the highest mix reported by the company. Management noted growth across all regions, with Mexico remaining strong and the Middle East rebounding from a weak start to deliver double-digit growth for the quarter. RVLV posted gross profit of $196.7 million, up 18% year over year, as gross margin expanded 254 basis points to 56.6%. The increase included a 162-basis-point benefit from IEEPA tariff refunds. Excluding the refunds, gross margin still improved about 92 basis points, helped by AI and data-driven recalibration of markdown algorithms.The REVOLVE segment’s gross profit increased 18% year over year to $176.9 million. Its segment gross margin was about 58.5%, compared with roughly 55.9% a year earlier, and included a $5.2 million tariff-refund benefit.FWRD gross profit rose 15% to $19.7 million. The segment’s gross margin improved to about 44.0% from roughly 42.2% in the prior-year quarter and included a $0.5 million tariff-refund benefit.Income from operations increased 23% year over year to $22.1 million. The operating margin expanded to 6.4% from 5.8%, despite higher investments in marketing, physical retail, the REVOLVE Los Angeles label and the Grow-Good beauty venture.Adjusted EBITDA rose 17% to $26.8 million, including a $5.6 million benefit from tariff refunds. The adjusted EBITDA margin increased 30 basis points year over year to 7.7% from 7.4%. Revolve increased marketing spending to support major growth initiatives during the second quarter. Marketing expenses rose to $57.5 million, or 16.5% of net sales, from $47.1 million, or 15.2%, in the year-ago quarter. The increase mainly reflected investments in the REVOLVE Los Angeles namesake label, brand-building initiatives and newer marketing channels, including connected television.Selling and distribution expenses increased to $62.1 million, or 17.9% of net sales, from $53.8 million, or 17.4%, a year earlier. Management attributed the reduced efficiency to higher customer shipping costs, including variable fuel and other surcharges in international markets, partially offset by a lower product return rate.Fulfillment costs were $11.6 million, or 3.3% of net sales, compared with $9.8 million, or 3.2%, in the prior-year quarter. The increase primarily reflected higher compensation expenses for fulfillment staff, partly offset by the lower return rate.General and administrative expenses rose to $43.4 million, or 12.5% of net sales, from $38.3 million, or 12.4%. Higher spending was tied largely to investments in the REVOLVE Los Angeles label, physical retail expansion and the Grow-Good beauty venture developed with Cardi B. RVLV used $8.2 million of cash in operating activities during the second quarter, compared with $12.6 million generated in the year-ago period. Free cash flow was negative $10.9 million versus positive $9.6 million a year earlier, primarily because unfavorable working-capital movements more than offset the increase in net income.For the first six months of 2026, operating cash flow remained positive at $41.2 million, while free cash flow totaled $34 million. The company repurchased 497,675 Class A shares for $9.9 million during the quarter at an average price of $19.98 per share.The balance sheet remained a key financial strength. Cash and cash equivalents were $311.6 million at June 30, 2026, up slightly from $310.7 million a year earlier and the company remained debt-free.Inventory ended the quarter at $275.8 million, up 25% year over year and 9.5% from the end of 2025. Management noted that the year-over-year comparison was affected by tariff-related shipment delays that reduced inventory in the prior-year period. On a two-year stacked basis, net sales growth exceeded inventory growth by approximately 5 percentage points. Revolve said the second REVOLVE Los Angeles collection delivered stronger early sell-through than the initial assortment. Management plans to establish the namesake label with premium products before expanding into additional categories and price points to support more meaningful sales volumes from 2027 onward.Grow-Good beauty products, developed with Cardi B, also generated strong early demand, with the first three product drops selling out within hours. The company expects to begin receiving a significantly larger inventory restock in the fall. Management added that Grow-Good carries gross margins that are highly accretive to the overall business and attracts customers with limited overlap with REVOLVE and FWRD.Management also emphasized international expansion, physical retail and artificial intelligence. Mexico continued to post strong growth following marketing and service improvements, while the Middle East rebounded from a weak start to deliver double-digit growth for the quarter. Revolve remains on track to open its third physical store at Aventura Mall in greater Miami during the fourth quarter.On the technology front, RVLV plans to test an AI-powered image-search feature that will allow shoppers to upload a photograph and find identical or similar products. The company is using AI-powered internal analytics tools that allow employees to query enterprise data in plain English while monitoring traffic and conversion trends across its physical stores. Revolve’s updated 2026 outlook reflects continued investment in growth initiatives amid geopolitical uncertainty, tariffs, inflation, supply-chain pressures and foreign currency volatility. Management noted that the gross margin forecast excludes any additional IEEPA tariff refunds.For 2026, RVLV maintained its gross margin outlook at 53.5-54%. Fulfillment expenses are still expected to be 3.2-3.4% of net sales, while selling and distribution expenses remain projected at 17.1-17.3%.The company raised its marketing expense forecast to 15.8-16% of net sales from 15.3-15.8%, reflecting second-quarter spending and continued investment in long-term growth initiatives. General and administrative expense guidance was also increased to $170-$172 million from $164-$168 million. The effective tax rate is still expected to be 24-26%.For the third quarter of 2026, Revolve expects gross margin of 53.5-54%. Fulfillment expenses are projected at approximately 3.4% of net sales, while selling and distribution expenses are expected to account for roughly 17.5%.Marketing expenses are forecast at approximately 15% of third-quarter sales, while general and administrative expenses are expected to be about $43.5 million. Management also said fourth-quarter marketing spending is likely to exceed 16% of sales because of planned brand-building investments.The outlook follows an encouraging start to the third quarter, with July net sales increasing approximately 18% year over year. Management continued to target double-digit revenue growth for 2026. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -8.71% due to these changes. Currently, Revolve Group has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Revolve Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Revolve (NYSE:RVLV) and its peers. Online penetration surged during COVID before normalizing, consumer expectations around convenience, selection, fast delivery, and competitive pricing have remained permanently higher. Retailers have responded by investing in fulfillment networks, automation, omnichannel capabilities, and AI-powered personalization to serve customers more efficiently and improve the shopping experience. Today, ecommerce growth is driven less by first-time online adoption and more by increasing wallet share, higher purchase frequency, and the continued migration of traditionally offline categories online. As logistics networks and AI capabilities continue to improve, leading ecommerce platforms are well positioned to capture a growing share of consumer spending over the coming decade. The 5 online retail stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 2.1% below. In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results. Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NYSE:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy. Revolve reported revenues of $347.4 million, up 12.4% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and solid growth in its buyers. "We delivered a very solid quarter, highlighted by double-digit net sales growth across REVOLVE, FWRD, domestic and international for the third consecutive quarter and accelerated growth in active customers that reflects increasing engagement with next-generation consumers," said co-founder and co-CEO Mike Karanikolas. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.9% since reporting and currently trades at $22.98. Is now the time to buy Revolve? Access our full analysis of the earnings results here, it’s free. Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ:AMZN) is the world’s largest online retailer and provider of cloud computing services. Amazon reported revenues of $200.6 billion, up 19.6% year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates. The market seems happy with the results as the stock is up 8.8% since reporting. It currently trades at $256.26. Is now the time to buy Amazon? Access our full analysis of the earnings results here, it’s free. Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea". Coupang reported revenues of $8.86 billion, up 3.9% year on year, falling short of analysts’ expectations by 2.2%. It was a mixed quarter as it posted a solid beat of analysts’ EBITDA estimates. Coupang delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 24.7 million active buyers, up 3.3% year on year. As expected, the stock is down 3.4% since the results and currently trades at $16.22. Read our full analysis of Coupang’s results here. Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars. Carvana reported revenues of $7.38 billion, up 52.4% year on year. This result surpassed analysts’ expectations by 7.7%. Taking a step back, it was a mixed quarter as it also recorded impressive growth in its units but full-year EBITDA guidance missing analysts’ expectations significantly. Carvana delivered the biggest analyst estimate beat and fastest revenue growth of the whole group. The company reported 197,325 units sold, up 37.7% year on year. The stock is up 11.9% since reporting and currently trades at $74.19. Read our full, actionable report on Carvana here, it’s free. Founded in 2002 by Niraj Shah, Wayfair (NYSE:W) is a leading online retailer of mass-market home goods in the US, UK, Canada, and Germany. Wayfair reported revenues of $3.52 billion, up 7.5% year on year. This number topped analysts’ expectations by 1.4%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates. The company reported 21.7 million active buyers, up 3.3% year on year. The stock is up 17.6% since reporting and currently trades at $105.04. Read our full, actionable report on Wayfair here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Revolve’s second quarter saw revenue and profit results surpass Wall Street expectations, but the market reacted negatively, with shares declining more than 5%. Management pointed to robust new customer acquisition, lower product return rates, and continued double-digit growth across both core and emerging categories as primary drivers for the period. Co-CEO Mike Karanikolas emphasized the record number of new customers and the company’s milestone of surpassing three million active customers, attributing success to investments in brand-building, technology, and expansion beyond traditional fashion categories. He noted, “Our net sales momentum has continued into the third quarter, with net sales in July increasing approximately 18% year-over-year.” Still, increased logistics costs, especially for international shipments, and higher marketing spend weighed on profitability. Is now the time to buy RVLV? Find out in our full research report (it’s free). Revenue: $347.4 million vs analyst estimates of $342.7 million (12.4% year-on-year growth, 1.4% beat) Adjusted EPS: $0.26 vs analyst estimates of $0.22 (17.6% beat) Adjusted EBITDA: $26.78 million vs analyst estimates of $23.54 million (7.7% margin, 13.8% beat) Operating Margin: 6.4%, in line with the same quarter last year Active Customers : 3.04 million, up 298,000 year on year Market Capitalization: $1.73 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rick Patel (Raymond James) asked about the drivers behind July’s accelerated growth and the durability of those trends. Co-CEO Mike Karanikolas attributed growth to recent marketing investments, stating the company is “hopeful” for continued strong performance, but did not tie results to broader consumer strength. Nathan Feather (Morgan Stanley) inquired about the long-term potential and timing for Grow-Good to materially impact results. CFO Jesse Timmermans cited inventory constraints as a limiting factor so far, but expects more meaningful contribution as inventory improves in the fall. Anna Andreeva (Piper Sandler) questioned the sustained double-digit growth in general and administrative expenses. Timmermans explained that elevated costs are primarily tied to this year’s growth initiatives, with leverage expected as these investments mature and revenue scales. Mark Altschwager (Baird) asked what milestones would prompt an acceleration in physical retail store openings. Co-CEO Michael Mente stated that the company is still in an experimental phase, focusing on optimizing store format and infrastructure before committing to faster expansion. Jay Sole (UBS) probed the impact of AI on inventory planning and cost structure. Karanikolas explained that AI is improving demand forecasting and category mix optimization, but acknowledged that some cost increases are tied to investments in AI infrastructure and experimentation. Looking ahead, the StockStory team will be monitoring (1) the scale and repeat rates of new product launches, especially in beauty and owned brands, (2) the impact of AI-driven tools on customer engagement and inventory efficiency, and (3) the pace and profitability of physical retail expansion. Continued investment discipline and early performance from the Cardi B partnership will also be important markers for future momentum. Revolve currently trades at $24.39, down from $26.37 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET SVP of Investor Relations - Erik Randerson Co-Founder and Co-CEO - Mike Karanikolas Co-Founder and Co-CEO - Michael Mente Chief Financial Officer - Jesse Timmermans Operator: Good afternoon. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Revolve Group Second Quarter 2026 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press the pound key. Thank you. I would now like to turn the conference over to Erik Randerson, SVP of Investor Relations. You may begin. Erik Randerson: Good afternoon, everyone. Thanks for joining us to discuss REVOLVE's second quarter 2026 results. Before we begin, I'd like to mention that we have posted a presentation containing Q2 2026 financial highlights to our Investor Relations website located at investors.revolve.com. I would also like to remind you that this conference call will include forward-looking statements, including statements related to our future growth, our inventory balance, our key priorities and business initiatives, industry trends, our marketing events and their expected impact, our physical retail stores, our own brand and luxury brand expansions, our use of AI, our market position and competitive positioning, our partnerships, and our outlook for net sale, gross margin, operating expenses, and effective tax rate. These statements are subject to various risks, uncertainties and assumptions that could cause our actual results to differ materially from these statements, including the risks mentioned in this afternoon's press release, as well as other risks and uncertainties disclosed under the caption Risk Factors and elsewhere in our filings with the Securities and Exchange Commission, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2025, and our subsequent quarterly reports on Form 10-Q, all of which can be found on our website at investors.revolve.com. We undertake no obligation to revise or update any forward-looking statements or information except as required by law. During our call today, we'll also reference certain non-GAAP financial information, including adjusted EBITDA and free cash flow. We use non-GAAP measures in some of our financial discussions as we believe they provide valuable insights on our operational performance and underlying operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for or superior to the financial information presented and prepared in accordance with GAAP. Our non-GAAP measures may be different from non-GAAP measures used by other companies. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures, as well as the definitions of each measure, their limitations, and our rationale for using them can be found in this afternoon's press release and our SEC filings. Joining me on the call today are our Co-Founders and Co-CEOs, Mike Karanikolas and Michael Mente, as well as Jesse Timmermans, our CFO. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn it over to Mike. Mike Karanikolas: Hello, everyone, and thanks for joining us today. We had a very solid quarter, highlighted by strong and profitable growth across segments and geographies, leading to continued market share gains. We achieved double-digit net sales growth across REVOLVE, FWRD, Domestic, and International for the third consecutive quarter. Our underlying business metrics illustrate our increased momentum with next-generation consumers. Trailing 12-month active customers further accelerated in the second quarter to 11% growth year-over-year, fueled by a record quarterly performance for new customer acquisition and increased engagement from pre-existing customers. The 115,000 increase in active customers in just three months is our highest quarterly growth in four years, which has enabled us to surpass the 3 million active customer milestone in Q2. Also notable, our product return rate decreased year-over-year for the second consecutive quarter, outperforming our expectations. The win reflects a favorable mix shift, helped by successful expansion of product categories outside of our historical core and continued progress on our initiatives designed to reduce our return rate in customer-friendly ways. Our net sales momentum has continued into the third quarter, with net sales in July increasing approximately 18% year-over-year, reinforcing my confidence in our path to achieve our goal of double-digit revenue growth for the full year 2026. The continued strong growth signals that our investments in brand, technology and AI, site experience, and category expansion are truly paying off. Beyond the numbers, Mike and I are most excited about the progress on our longer-term initiatives. 2026 is a foundational year for REVOLVE, focused on successfully launching longer-term investments that we believe have the potential to transform our business over time. I'm excited about our early progress against these large opportunities, such as building our physical retail muscle and developing our first ever REVOLVE namesake label within our own brand assortment. Our Grow-Good Beauty products, developed in partnership with Cardi B, were introduced in the second quarter to much fanfare that exceeded our expectations. Seeking to capitalize on such growth opportunities, our investments in 2026 have been meaningful, approximating two points of adjusted EBITDA margin in 2026 to seed these exciting initiatives in our efforts to ensure their long-term success. As a founder-led company bolstered by a rock-solid balance sheet and consistent cash flow generation, Mike and I are focused on maximizing value over the long term. Michael will talk more about each of these initiatives in his remarks. Underscoring our confidence in our future outlook, we repurchased nearly 500,000 shares of Revolve Group common stock in the second quarter, reducing our Class A common shares by more than 1%. The approximately $10 million returned to shareholders represents less than a third of our free cash flow generation year-to-date. With that as an introduction, I will step back and provide a brief recap of our second quarter results before reviewing the progress on our longer-term initiatives. Net sales for the second quarter were $347 million, an increase of 12% year-over-year. This marks our third consecutive quarter of double-digit top-line growth. By segment, REVOLVE net sales increased 13%, and FWRD net sales increased 11% year-over-year. By territory, Domestic net sales increased 11%, and International net sales grew 16% year-over-year. Gross margin was 56.6%, which included an approximately 160 basis point benefit from IEEPA tariff refunds, up from 54.1% in the second quarter of 2025. Excluding the tariff refund, gross margin increased approximately 90 basis points year-over-year, fueled primarily by successful AI and data-driven recalibrations of our markdown algorithm. Growth in our operating expenses in Q2 and year to date 2026 reflect the strategic investments in longer term initiatives that we are so excited about, which is particularly evident on the marketing line. In the second quarter, we also experienced elevated logistics cost headwinds, particularly in the international markets affected by today's dynamic geopolitical environment, where variable fuel and other surcharges on international customer shipments increased meaningfully year-over-year. Shifting to our bottom line results, net income was $19 million, and diluted earnings per share was $0.26, which includes a $0.06 gain from IEEPA tariff refunds. This is an increase from diluted EPS of $0.14 in the second quarter of 2025, which was negatively impacted by a loss on the disposal of a former subsidiary, as well as a higher than normal tax rate. Adjusted EBITDA increased to $27 million, including a $5.6 million benefit from IEEPA tariff refunds, and was achieved while heavily investing in the compelling longer term growth initiatives discussed earlier, all of which we believe could be game changers. This is up from adjusted EBITDA of $23 million in the second quarter of 2025. Incidentally, we filed for approximately $8 million in IEEPA tariff refunds, most of which we received and recognized in our second quarter financial results. As a reminder, we successfully mitigated the vast majority of the tariff impact, thanks to the great work, agility, and execution by our team. I'll conclude by recapping our progress against our longer term strategic priorities and growth drivers. We're advancing on a strong slate of initiatives, and the team's execution has us well positioned for meaningful long-term value creation. First, we continue to invest to expand our brand awareness, grow our customer base, and strengthen our connection with the next generation consumer. We had a very active and impactful second quarter for brand building, featuring incredible activations at REVOLVE Festival and Stagecoach, attended by countless A-listers. Our first ever men's brand marketing and World Cup activations and aspirational lifestyle events in Monaco and Spain that collectively generated hundreds of millions of press and social media impressions. We are very pleased with the results of our brand-building efforts and investments in growth initiatives that drove a record number of new customers and strong growth in active customers in the second quarter. Second, we continue to meaningfully expand our international penetration, highlighted by 16% net sales growth outside of the U.S. Net sales increased across all regions, with Mexico again delivering exceptional growth on the heels of the marketing and service enhancements discussed last quarter. Most impressively, after a weak start to Q2, the Middle East region rebounded to strong double-digit growth for the quarter, helped by our agility and opportunistically capitalizing on driving demand at a time when competitors pulled back. All told, international generated nearly 23% of total net sales in the second quarter, the highest mix we have ever reported. Yet, we still have so much white space for future growth in a market that is more than 3x larger than the U.S. opportunity. Third, our second quarter results further validate our successful efforts to expand our share of wallet among our loyal customers. The fashion apparel category outpaced our net sales growth in Q2, driven by particular strength from wardrobe essentials including tops, pants, outerwear, intimates, shorts, and jeans. Emerging product areas of beauty and men's also continue to perform very well, growing faster than the overall business on a combined basis. Finally, we continue to leverage AI to drive innovation, growth, and efficiency across the platform. I will provide two examples of our incredible progress, one that is customer-facing and another that has delivered huge gains for internal analytics, strategy, and faster decision-making. First, I'm excited by the promising evaluations of an enhancement to our on-site search algorithms that will soon allow consumers to upload photo images to discover similar items from our assortment. For example, a customer could upload a photo of a celebrity wearing a cute dress, our AI-driven innovation will show the exact item, if available, along with similar items on REVOLVE. We expect the innovation to elevate product discovery and drive increased customer engagement and fashion inspiration and serve as a foundational technology for future enhancements. Testing of this feature on the REVOLVE site will begin in the coming weeks. Shifting gears, we have also leveraged AI technology to develop proprietary data repositories that serve as powerful in-house analytics tools. For example, our team members can now query our full data warehouse in plain English, with AI agents returning insights in minutes with full reporting and analysis. Particularly exciting is a related feature we have developed from scratch to help us elevate the shopping experience and drive higher conversion in our retail stores. Leveraging AI, we built custom algorithms to analyze store visual feeds to provide insight into store performance. As a result, we can now see in real time the traffic and conversion rates by store and floor, among many other metrics. This AI innovation has helped us to build the foundational data pieces for physical retail that we have always had in e-commerce. To wrap up, our business momentum is strong, we are making great progress advancing our exciting longer term initiatives that further strengthen our foundation for profitable growth. I want to thank our team for their focus, dedication, and resilience that have played such critical roles in delighting our customers every day in positioning the company for future success. Over to Michael. Michael Mente: Thanks, Mike, and hello, everyone. We delivered another quarter of double-digit profitable growth while continuing to invest in long-term strategies that we believe will strengthen our brands and accelerate our growth potential. We believe our market share gains validate our core competitive advantages, which position us for continued success over the long term. Our data-driven DNA and proprietary technology infrastructure, our operational excellence and agility, and our powerful brands in connection with the next generation consumer. With that as an introduction, I will focus my remarks on some of the strategic areas we are investing in and that we are especially excited about. Owned brands and our new REVOLVE namesake label. FWRD's momentum in the luxury market, physical retail expansion, and our joint venture with Cardi B. First, owned brands. Our owned brand penetration of REVOLVE segment net sales increased year-over-year for the sixth consecutive quarter in Q2, with even more excitement and newness ahead in the second half of the year. In late June, we dropped our second assortment of REVOLVE Los Angeles, the summer collection of our first-ever namesake label. Our brand campaign featured REVOLVE Los Angeles brand ambassador Irina Shayk, who perfectly showcased our brand vision of effortless glamour and confidence. I am thrilled to share that the sell-through metrics for REVOLVE Los Angeles drop number two are even stronger than our first assortment in the early going. Our REVOLVE namesake label is a multi-year journey. The focus in this initial stage of the journey is to build the brand with a disciplined and thoughtful approach through an integrated product, merchandising, and marketing strategy. The initial drops are beautiful statement pieces offered at higher than average price points that will help establish the premium, aspirational positioning of the REVOLVE Los Angeles brand in the eyes of consumers, while also providing a halo for the broader REVOLVE brand and ecosystem, both online and in store. We are deeply investing in marketing strategies to build favorable brand awareness that will be the foundation for driving more meaningful sales volume in 2027 and beyond. To that end, following this initial brand-building phase, we plan to introduce REVOLVE-branded offerings in greater depth across additional categories and price points to drive increased demand and higher sales volumes. We are truly encouraged with our progress to date with REVOLVE Los Angeles. The product looks incredible and everything is moving ahead as we have envisioned. Second, FWRD. Our FWRD segment delivered 11% net sales growth year-over-year, roughly 4x the estimated growth rate of the global personal luxury goods market in 2026, according to Bain-Altagamma research. FWRD was also a key contributor to our strong second quarter for customer acquisition that Mike discussed. An encouraging rebound in handbags net sales growth in recent months was a key driver of FWRD's impressive growth, including our FWRD Renew pre-owned luxury handbags that are available online and prominently showcased at our retail locations. Also significant, luxury brands are increasingly creating in-demand products that are exclusively available on FWRD. In June, we launched our second annual FWRD Summer Club capsule that features exclusive-to-FWRD styles from coveted luxury brands, including Missoni, The Attico, Cult Gaia, and SAME, as well as the first-ever Flòwze and Éliou collaboration. Net sales for the FWRD Summer Club capsule increased nearly 50% year-over-year, resulting in very positive feedback from our brand partners. In an industry scarred by retailer bankruptcies in recent quarters, luxury brands increasingly recognize FWRD as a clear winner in this space for the long term. As such, we were proud to recently launch Christian Louboutin on FWRD, an iconic luxury brand with only limited wholesale distribution, including women and men's collections. Third, physical retail. We remain very excited about the growth opportunity in physical retail ahead of us. With learnings from Aspen and Los Angeles, and supported by ongoing investments in our team, operations, and retail technology platform, we are on track to open our third retail store in the fourth quarter. We are excited to expand to Greater Miami, a top five market for our business, where we will open in Aventura Mall, Florida's largest retail destination, attracting 30 million visitors annually. Aventura is a natural fit for our retail strategy. It will expand our brand awareness and addressable market, will enable us to engage more deeply with many new and existing customers, and gives us a stronger platform to increase the penetration of our owned brands. Our strong customer concentration in South Florida has been shopping REVOLVE online for years, and soon we will be able to meet them where they are. REVOLVE's future storefront is centrally located near other premium consumer brands, ideally positioned for Aventura's high traffic volume from locals and international tourists. Our Aventura store will emphasize experiential retail, including events and activations for our Millennial and Gen Z consumers who are drawn to immersive, shareable environments that mirror the communities they engage with online. Our brand partners are also excited to participate in store events to create meaningful brand experiences, such as our successful SKIMS activation recently held in our Los Angeles store at The Grove. We'll have much more to say on this exciting topic during our November earnings call. Finally, I'll provide an update on our Cardi B joint venture, highlighted by the phenomenally successful launch of Grow-Good beauty products in the second quarter. In short, early demand for Grow-Good offerings has outstripped available inventory across the board. Our first three drops in April, May, and early July sold out within hours, with key products selling out within minutes, and our most recent drop in late July had the highest customer repeat rate and highest conversion rate out of any drop thus far. With such incredible demand, brand heat, and growing awareness among Cardi B's massive following, we have ordered a much larger restock of Grow-Good inventory that we expect to begin receiving this fall as we look to build on the strong early market response. There are many positive signals that reinforce our confidence in the exciting opportunity ahead. In just a few months, the Grow-Good brand has attracted 670,000 Instagram followers. Several hundred thousand consumers have requested back-in-stock notifications, and an even larger number have signed up to receive product marketing via email and SMS. Early customer reviews for the products are glowingly positive, with an exceptional customer review score averaging 4.9 out of 5 stars across the Grow-Good product line. This has already led to significant numbers of repeat purchases. In fact, nearly a third of Grow-Good's orders in early July were repeat customers who had previously purchased the products in April or May, and this ratio was even higher for the most recent drop in late July. Most exciting is that Grow-Good's growth margin is highly accretive to our business model, directionally similar to our own brands assortment. Also notable is that Grow-Good customers are nearly all incremental, with very little overlap with REVOLVE and FWRD. Exclusively available on Grow-Good's DTC site, every Grow-Good product retails under $20, ideally priced for the mass market. We're still in the very early innings here, and the momentum has us excited about what lies ahead. To close, we're energized by the momentum across our business and the breadth of initiatives underway that we believe will fuel growth for years to come. We remain committed to investing in our brands, innovating for our customers. Pursuing the substantial market opportunities ahead of us with the same discipline and ambition that have gotten us here. Now, I will turn it over to Jesse for a discussion of the financials. Jesse Timmermans: Thanks, Michael, and hello, everyone. We are excited about the current momentum in the business and the progress being made on our growth initiatives that we believe set us up well for further growth and margin expansion. We are very focused on the long term, putting our balance sheet to work by investing in longer-term initiatives to capture further market share, while at the same time striking a balance by delivering profitable growth in the near term. I'll start by recapping our second quarter results and then close with updates on recent trends in the business and guidance for the balance of the year. Starting with the second quarter results, net sales were $347 million, a year-over-year increase of 12%, our third consecutive quarter of double-digit growth. REVOLVE segment net sales increased 13%, and FWRD segment net sales increased 11% year-over-year in the second quarter. By territory, domestic net sales increased 11%, and international net sales increased 16% year-over-year. Growth in trailing 12-month active customers accelerated to 11% year-over-year, surpassing 3 million active customers for the first time. That momentum has carried into the third quarter, reinforcing the strength of our brands. Contributing to the healthy top line was 11% growth in total orders placed year-over-year to 2.7 million. Average order value was $299, compared to $300 in the second quarter of 2025. The very slight decrease was driven by initial orders of Grow-Good Beauty products, which have much lower price points and average order values. Absent the addition of the Grow-Good business, AOV would have been in excess of $300, reflecting a slight increase year-over-year. Incidentally, the Grow-Good product sales are included in the REVOLVE segment and also within the other category for the net sales by product category disclosures in our 10-Q filing. Consolidated gross margin was 56.6%, which was positively impacted by 162 basis points from IEEPA tariff refunds received during the quarter, up from 54.1% in the second quarter of 2025. Excluding the tariff refunds, gross margin increased approximately 90 basis points year-over-year with margin expansion across both segments. The Q2 financial highlights presentation posted on our investor relations website today has a breakdown of the tariff refunds recorded to cost of goods sold, split between the two operating segments. Moving on to operating expenses. Fulfillment costs were 3.3% of net sales, a slight increase from 3.2% in the second quarter of 2025. Selling and distribution costs were 17.9% of net sales and slightly above our guidance range. The 47 basis point increase year-over-year primarily reflects increased costs for customer shipments, including variable fuel surcharges elevated by the geopolitical environment, partially offset by a reduced product return rate. Our marketing investment was 16.5% of net sales, an increase of 130 basis points year-over-year and higher than our guidance. As with the first quarter, we meaningfully increased our marketing investments to support our growth initiatives, such as our new REVOLVE Los Angeles label, and we are continuing to test and invest in new marketing channels this year for the first time, such as connected TV, which have contributed to some of the variability quarter to quarter. General and administrative expenses were $43.4 million, an increase of 13% year-over-year and slightly above plan as certain strategic growth investments advanced more quickly than we anticipated. Zooming out, the three largest contributors to increased G&A spending year-over-year in the second quarter relate to the longer-term investments in our REVOLVE namesake label, physical retail, and our joint venture with Cardi B, all of which we are incredibly excited about. Below the operating line, in the second quarter, we recorded other income of $2.3 million, an increase from recording other expense of $2.9 million a year ago. Recall that results for the second quarter of 2025 included a $2.4 million loss from the disposal of a former subsidiary, as well as higher than typical foreign exchange losses within other expense. Our tax rate was 25% in the second quarter, consistent with our guidance and a decrease of nearly 9 percentage points from the prior year. Net income was $19 million, and diluted earnings per share was $0.26, which includes a $0.06 positive impact from IEEPA tariff refunds. This compares to diluted EPS of $0.14 in the second quarter of 2025, which was negatively impacted by the charge from the disposal of a former subsidiary and higher than typical foreign currency exchange losses noted earlier, as well as a higher than normal effective tax rate. Adjusted EBITDA was $27 million, including a $5.6 million positive impact from IEEPA tariff refunds, achieved while heavily investing in the compelling longer-term growth initiatives. This was a 17% increase from adjusted EBITDA of $23 million in the second quarter of 2025. Moving on to the balance sheet and cash flow statement. Net cash used by operating activities was $8 million, and free cash flow was -$11 million in the second quarter, primarily due to unfavorable working capital movements that more than offset the increased net income. For the six-month year-to-date period in 2026, we generated positive operating cash flow and free cash flow of $41 million and $34 million, respectively. Our strong financial position enabled us to continue to invest in the business, while at the same time, returning capital to stockholders through the repurchase of Class A common shares as part of our commitment to enhancing shareholder value. During the second quarter, we repurchased nearly 500,000 Class A common shares at an average price of $19.98, retiring more than 1% of our Class A common stock in just three months. Inventory at June 30th, 2026, was $276 million, an increase of 25% year-over-year. Of note, the year-over-year growth in inventory is skewed by tariff-related delays experienced in the second quarter of 2025 that resulted in a year-over-year decline in inventory in last year's second quarter. On a two-year stacked basis comparing our results to the second quarter of 2024, our net sales growth outpaced our inventory growth by approximately 5 percentage points. As of June 30th, 2026, our balance of total cash and cash equivalents was $312 million, an increase of $1 million year-over-year, and we continue to have no debt. Let me update you on some recent trends in the business since the second quarter ended and provide some direction on our outlook to help in your modeling of the business for the balance of the year. Before I do, there are a few items that deserve mention to provide additional color as it relates to our guidance outlook for the balance of the year. First, we still have an additional $1.4 million in outstanding potential IEEPA tariff refund claims that we have not received or included in our financials or guidance. Second, increased net sales of Grow-Good Beauty products in the second half of 2026 could lead to further downward shifts in our combined average order value year-over-year. On the other hand, Grow-Good's unit economics are highly accretive to our gross margin and bottom-line profitability. It is a trade we're happy to make. Third, given the reduction in our return rate in the first half of the year, we're feeling more confident in the opportunity to drive it down further over time, though we're not yet baking that into our guidance. With that, let's start from the top. We're off to an encouraging start with net sales through the month of July 2026, increasing by approximately 18% year-over-year, a six-point acceleration compared to our growth rate in the second quarter of 2026. Shifting to gross margin, we expect gross margin in the third quarter of 2026 of between 53.5% and 54.0%, which implies a decrease of approximately 88 basis points year-over-year at the midpoint of the range. Embedded in our guidance assumptions are the more difficult gross margin comparisons from the third quarter of 2025, which increased roughly three and a half points last year, and meaningfully benefited from the data-driven recalibration of our markdown algorithms. Consistent with year-to-date trends, we also expect our full price mix of net sales to remain slightly lower year-over-year, but still very strong relative to the broader market. For the full year 2026, we continue to expect gross margin of between 53.5% and 54%, which implies a year-over-year increase of around 25 basis points at the midpoint of the range. Fulfillment. We expect fulfillment as a percentage of net sales of approximately 3.4% for the third quarter of 2026, and between 3.2% and 3.4% of net sales for the full year 2026, unchanged from our previous guidance. Selling and distribution. We expect selling and distribution costs as a percentage of net sales of approximately 17.5% for the third quarter of 2026, consistent year-over-year. For the full year, we continue to expect selling and distribution costs of between 17.1% and 17.3% of net sales. Marketing. We expect our marketing investment to be approximately 15% of net sales in the third quarter and north of 16% of net sales in the fourth quarter, with some key brand-building investments planned in Q4. For the full year 2026, we now expect our marketing investment to be between 15.8% and 16% of net sales, an increase that largely reflects the second quarter performance and continued investments in our longer-term growth initiatives. General and administrative. We expect G&A expense of approximately $43.5 million in the third quarter of 2026, and now expect G&A expense of between $170 million and $172 million for the full year 2026, as we continue to prudently invest in key growth opportunities, such as the Revolve namesake label, physical retail, and the Cardi B joint venture. Lastly, we continue to expect our effective tax rate to be around 24%-26% for the full year 2026. To recap, I am very excited about the momentum in the business and believe the growth initiatives we're investing behind have the potential to supercharge our profitable growth and market share gains in the years ahead. Now we'll open it up for your questions. Operator: As a reminder, if you'd like to ask a question, simply press star followed by the number one on your telephone keypad. Your first question comes from the line of Rick Patel from Raymond James. Your line is live. Rick Patel: Thank you. Good afternoon, everyone. I was hoping you could unpack the acceleration that you saw in July to 18% growth. How much of that do you think reflects a strong consumer versus the timing of activations and new initiatives you have? How are you thinking about the durability of that growth in 3Q and 4Q? Mike Karanikolas: Yeah, we feel great about the trends we're seeing in July month to date. From our perspective, we don't necessarily see it as sign of a broader consumer trend across all companies. We're certainly seeing nice trends internally, and we think it's a result of a lot of the execution we've done, especially heading out of Q2. We made some larger marketing investments in Q2. We think those are starting to pay dividends, and we're seeing that in the form of the accelerated growth in Q3. As we look to the back half of Q3, we're certainly hopeful that we'll continue to see better growth trends in Q3 than Q2, which was also strong. Rick Patel: Can you also talk about where your new customer acquisition is coming from? I guess, how do we think about gross customer adds as we think about geography or any particular categories or channels that have been particularly effective? Mike Karanikolas: Yeah. We've seen really broad-based strength across the business, both on the revenue side and the new customer side. It's really across the board. Internally, there's some key growth drivers. We've talked about international being particularly strong. Of course, domestic had a great quarter as well. Category expansion is something that we've been investing in for years, and we saw continued progress in the most recent quarter there. Of course, some of the newer marketing investments that we're making. Of course, when we experiment with some new marketing channels, some of that money in the short term isn't going to work out, but it's still money well spent. We feel good about the marketing capabilities that we've layered on with some of these new investments and the ability to drive growth and activate customers Rick Patel: Thanks very much. Operator: Your next question comes from the line of Nathan Feather from Morgan Stanley. Your line is now live. Nathan Feather: Hey, everyone. Thanks for taking the question. Congrats on the quarter. Can you help us think through the ramp trajectory for Grow-Good into the back half in 2027? When did it reach that point where it kind of tips over to really being material to results, if it's not already? Then any learnings you're taking from that as you think about the own brand strategy going forward? Jesse Timmermans: Hey, Nathan. Thanks for the question. We're really excited about the Grow-Good launches, those first three launches performing extremely well. As we mentioned in this call and on the prior call, the growth has largely been limited by the inventory availability. We expect to get more inventory in this fall to drive more meaningful top-line growth. Then that will continue into 2027. I think, if all goes well, by the time we exit this year, we'll have more to say and more granular disclosure on how well Grow-Good is performing. Nathan Feather: All right. Thank you. Can you give a little more detail on what you're seeing on the return rate side? What have you done to continue to push that downwards? Especially think about the opportunities going forward that remain in order to continue that downward pace. Mike Karanikolas: Yeah. In the second quarter in particular, it's a mix of a couple of things. Part of it is a category mix shift, which is certainly part of an ongoing long-term strategy of ours. That had a healthy impact on return rates in the second quarter. The other thing, of course, is these initiatives that we continue to roll out or expand against return rate. We saw some nice gains there as well. For the back half of the year, we're feeling good about the direction of return rates, but for now, we're forecasting flat. In terms of specific details on initiatives, I don't want to get into specific initiatives, but we're continuing to roll out both existing initiatives that have had some positive impact and continuing to R&D new efforts. Of course, as technology advances, I think there's some really exciting things we can do on the return rate side and the visualization side for customers. Operator: The next question comes from the line of Michael Binetti from Evercore ISI. Your line is live. Michael Binetti: Hey, guys. Thanks for taking our question. Congrats on a nice quarter. If we strip out the tariff refund, Jesse, I think the flow-through was a little lower than it's been in a few quarters. I could hear you guys feel good on the business and where you're at. Is it safe to say that you took the opportunity to invest when you got the refund, or that you invested more than you were planning because you got the refund in hand? I'm trying to think about flow-through, how to think about it for the rest of the year, if you don't mind. I know you mentioned full price selling was a little lower than last year in the third quarter. Can you just comment on what you're seeing in the promotional environment and how you set your expectations for markdowns and full price selling through the year? Anything you could comment on the nice July trends you're seeing. Any comment on the consumer in the U.S. versus international would be appreciated. Jesse Timmermans: Yeah. Thanks, Michael. Maybe for the first one, we didn't necessarily invest because of the tariff refund. We felt really good about the investments we were making. Like Mike mentioned, we saw some really good results out of the marketing. I think we would have done those absent the tariff refund, just given the results that we were seeing. Now, it is nice to have that tariff refund back. All in all, I think we're feeling really good about the growth initiatives. Those early green shoots that we're seeing in active customers, the strong top-line growth. Again, even absent the tariff refund, we would have invested. Full price markdown. Markdown is a little bit heavier than we would like. Full price mix is still very healthy. Starts with an eight. Really good in the broader scheme of things. We do expect continued pressure similar to what we saw this quarter for the back half of the year until things start to normalize out. In July, not much more to add other than what Mike said. We are just seeing that nice broad-based growth across both segments and geographies. I think really impressive and a surprise to us was the Middle East rebounding into strong double digits this quarter, and we did not forecast that. I think it is very much a story of the growth initiative starting to play out and just good broad-based growth. Michael Binetti: Thanks a lot, guys. Really appreciate it. Operator: Your next question comes from the line of Anna from Piper Sandler. Your line is now live. Anna Andreeva: Great. Thank you so much for taking our question. Congrats. A really nice quarter, guys. We wanted to follow up on the guidance. Can you just talk about what's driving the higher G&A for the year? This line item has grown double-digits really for some time now, and obviously lots of initiatives that are working. Can you talk about where you are in the investment cycle? Secondly, just on gross margin, not sure if you mentioned, what are you seeing with input costs and what's embedded for the rest of the year? Then we have a follow-up as well. Jesse Timmermans: Yeah. Thanks, Anna. For G&A, it's largely the growth initiatives that are driving that higher year-on-year. If you kind of break that out, we mentioned there was about a two-point impact to adjusted EBITDA for the full year. About 50 basis points of that is in G&A and about 150 is in marketing. Some really meaningful investments in marketing, but also G&A. As far as the investment cycle goes, it's largely a this-year story where we'd expect to start to see some leverage into next year. If you strip out those growth initiatives from G&A, for the year-to-date, G&A was 12.4%. As stated, it would be about 11.8%. That would just show some nice leverage year-on-year. That's kind of more indicative of what we'd expect in the out years where G&A is growing in the mid-single-digits. Of course, top line, if we continue to deliver that double-digit top-line growth, we should see some meaningful leverage. On input costs, we have factored those higher input costs into the guidance, similar to what we did last quarter and what we mentioned. We are starting to see those trickle in, and that's primarily on those petroleum-based synthetic fabrics. Also in the other products, just higher mill and factory cost, transportation costs, et cetera. That's factored into our guidance, and it is a pressure point, but it's not abrupt, it's more of a gradual impact. Anna Andreeva: Okay. That's super helpful. Just as a follow-up, looking at the gross margins between FWRD and REVOLVE. The delta is 12 to 13 points currently, used to be higher. How do you think about the potential to further narrow that? Do you think structurally FWRD can be a high 40s gross margin business over time? I guess what needs to happen to get there? Jesse Timmermans: I think, contrary to that, we'd hope to expand that differential. FWRD is in a really good place, in that low to mid 40s is a good place for FWRD to be. Of course, last year in Q3, we had a really phenomenal 45% gross margin quarter for FWRD. In that low to mid 40s is a good place for FWRD to be. We'd intend to expand that differential given the own brand expansion on the REVOLVE side. We're still call it around 20% on REVOLVE versus the 36% that were back in 2019. As we continue to expand own brand penetration, we'd expect to see that REVOLVE gross margin expand. Anna Andreeva: All right. Thank you so much. Best of luck. Operator: Your next question comes from the line of Janine Stichter from U.S. Bancorp BTIG. Your line is now live. Janine Stichter: Hi. Thanks, congrats on the momentum. Wanted to ask about REVOLVE Los Angeles. I think you mentioned that you're planning to expand it to more categories and price points. Can you elaborate on exactly where you're going and the timing of that? Then on marketing, just curious for your thoughts on what the right percentage of marketing is. Is that something we should expect to see leverage on next year once we get past this big investment year for REVOLVE Los Angeles? Thank you. Michael Mente: Yeah. For REVOLVE Los Angeles, it's positioned initially out the gates as our premium pinnacle product, akin to a Ralph and Purple Label, over time, we'll extend to a range of categories. Our customer shops us across her entire closet, we really see an opportunity for REVOLVE label product to be in every aspect of her wardrobe, whether that's particularly REVOLVE Los Angeles or another REVOLVE label. We're super excited because the early stages are going extremely well, really give us permission and license to expand the REVOLVE label products into every aspect of her lifestyle. Very excited about that. Mike Karanikolas: Yeah. Then with regard to marketing, we've had some great opportunities to invest this year, some newer channels, some channels that are really checking well, as well as big initiatives to put dollars behind. Market investments are up a bit this year. We're always going to play the line item, the market item, a bit quarter-to-quarter, depending on the opportunities that we see then also we have going on strategically. As we look forward to next year, I would expect that marketing line item to come down a bit since we've invested heavily this year. Janine Stichter: Okay, thank you. Operator: Your next question comes from the line of Peter McGoldrick from Stifel. Your line is now live. Peter McGoldrick: Hey, thanks, guys, for taking my question. I wanted to ask about inventory levels. You pointed out the inventory build measures favorably on a two-year stack. Can you help us think about the flow of goods relative to your forward plans? Jesse Timmermans: Yeah. Thanks, Peter. Last year, and just to reiterate what we said, we did see receipt delays last year in the height of the tariff uncertainty, so inventory was down last year. We're seeing really healthy receipts this year. If you look on a two-year stack basis, net sales is outpacing that inventory growth by about five points. Now, with that, inventory is a little bit heavier than we would like. Still within the range of normal for us. We'll continue to see that comp dynamic in Q3 before it normalizes in Q4. Starting to see really healthy receipts as we look into the back half of the year. Peter McGoldrick: Thanks for that. On Grow-Good, it's encouraging to hear the really strong start. It seems you're seeing strong repurchase behavior out of the gate. Can you tell us about the potential for crossover behavior with the REVOLVE segment? You mentioned Grow-Good was reflected in the AOV metric. Is that also influencing your active customer numbers? Mike Karanikolas: On the Grow-Good side, we're encouraged by a lot of metrics on Grow-Good. Certainly the off-the-charts demand, the repeat and retention rates have been really strong, with the most recent drop approaching 40%, which for a brand this early is an incredibly good sign. It's only one thing to command the attention of consumers, you want them to love the product, you want them to come back. The retention rates show they're liking the product, you look at the product reviews and all that. I think we have a hit on our hands. With regards to the AOV question. Grow-Good certainly had an impact on AOV in the quarter. Absent Grow-Good, AOV would've been up. It's a bit of a different business model than REVOLVE. Still actually much higher AOVs than we initially anticipated when we projected and forecasted that business, because we're seeing consumers make purchases with lots of items. Jesse Timmermans: Peter, to your question, because it is consolidated, Grow-Good is reflected in all of the metrics, including active customers. Peter McGoldrick: Okay. Are you breaking that out? Jesse Timmermans: Not at this point. Again, when it gets more meaningful, which ideally is later this year when we get the higher inventory receipts, then we'll start breaking that out more granularly. Peter McGoldrick: All right. Thank you, and continued success. Operator: Your next question comes from the line of Mark Altschwager from Baird. Your line is now live Mark Altschwager: Good afternoon. Thanks for taking the question. Just the first one on stores. With Miami coming, you'll have three, and I think probably a better read on what that means for the halo. What do you need to see from these stores to shift from opening one store per year to committing to perhaps a faster pace of rollout? Is there a market count that you're thinking about in your head yet that you're willing to share? Michael Mente: Yeah. Going backwards, not necessarily at this point in terms of count. I think one thing that is really up for grabs, I think how we think about it internally is square feet. I think that we're really in the early stages of figuring out the appropriate format of how large these stores can be. We can see cases of much larger stores, or we can also see cases of a high number of smaller stores, depending on what I've seen in the marketplace. In terms of more accelerated rollout, really this is the patient build-out of the infrastructure, processes, and technology for us. This is really making sure that we have the robust systems that we have in our e-com business that we can roll out in a very aggressive way. What we're trying to do is a little bit different than other chain-type stores where every store is identical. We're really seeing that with our broad mix, we really have this huge opportunity to really connect with our customer in each neighborhood and each territory in a very unique way, as well as a combination of high volume and high-touch service. I think we're in uncharted territory in a very cool opportunistic way. The early stages have been very awesome with a lot of learnings. Also there's a lot of investment across board with technology, team, process, and everything needed to achieve $2 billion+ in revenue. Patient and slow upfront, so we can be super speedy and powerful over the long term. Mark Altschwager: Thank you. A follow-up for Jesse on gross margin. You're holding the guide for the year, even as those tariff refunds are now hitting the numbers. What are the incremental offsets you're considering? Is that the working in of higher markdowns, given the inventory levels being slightly higher than you wanted, you mentioned? Is there anything related to tariff Section 301 changes that are impacting the outlook? Thank you. Jesse Timmermans: Yeah. We held the margin guidance for the full year the same. With the tariff refunds, it's at the high end of that guidance, and then without the tariff refunds, it's at the low end of the guidance. I would say margin is still within our expectations that we laid out last quarter. Nothing significantly changed there. Still within the range. Now, the new Section 301, we have factored in the new, call it average, 12.5%. Not any incremental that could come in a later phase. That is a potential, but that, to my understanding, is still under investigation and timing is uncertainty. Right now, it's just the 12.5%. Mark Altschwager: Thank you. Best of luck. Jesse Timmermans: Thanks. Operator: Your next question comes from the line of Matthew Koranda from ROTH Capital Partners. Your line is now live. Matthew Koranda: Hey, guys. Thanks. I guess the question's been asked in different ways before, but maybe I'll attack from a different angle. The July acceleration, any categories that you guys want to call out as showing sort of the most strength? Just remind us maybe, Jesse, if you could, the cadence of comps from third quarter last year so we know sort of how much more difficult they get for the remainder of the quarter. Jesse Timmermans: Yeah. On the comp, I'll take that first. As you recall, last year in the Q2 earnings release, we said July was up 7% and we closed the quarter at +4%. It does indicate that comps get a little bit lighter for this back half of the quarter. Q4 pops back up to 10%, so they get a little bit tougher in Q4. Again, really pleased with not just that one-year growth, but if you look at the two-year growth, that increased sequentially in each month of Q2 and further increased in July. Feeling good about the underlying momentum. I don't think there's anything really specific to call out on any category other than to say just continued momentum across both segments, REVOLVE and FWRD, and domestic and international. I guess maybe the one thing Matthew Koranda: Helpful. Jesse Timmermans: to call out, which is relevant to Q2 as well, we continue to see men's beauty home outpace the overall growth. Again, speaking to that category diversification, that continues to play out nicely. Matthew Koranda: Okay. Great to hear. Maybe just one more. Sounds like the own brand expansion is going really well, just given some of the commentary that you gave. I guess it doesn't seem like it's coming through in the gross margin outlook. I guess, can you just speak to the factors at play there and why the gross margin outlook wouldn't be a little bit higher given the mix of own brands is improving for the remainder of the year? Jesse Timmermans: Yeah. We feel great about the own brand progress. It is increasing year over year, that penetration on the REVOLVE segment. That said, it's increasing at a very, call it modest rate. I think we mentioned this in prior quarters too, where we wouldn't expect to see that rapid expansion that we saw back in 2018, 2019, but more like a 1- to 2-point expansion per year. With more opportunities as we expand the categories under REVOLVE Los Angeles and some other things. At this point, it's a more modest increase on own brands. Offsetting that, of course, is what we've talked about, the slightly lower full price mix and some of those input costs. Kind of net, all reflected in the guidance, but there are some offsets to that own brand penetration. Operator: Your next question comes from the line of Jay Sole from UBS. Your line is now live. Jay Sole: Great. Thanks so much. Mike, my question's for you. Just talking about AI, sounds like a lot of different initiatives are happening. How much are all these different initiatives giving you better visibility into demand planning, inventory management, in terms of can you look out now two quarters or three quarters longer than before just because you have better information and a better idea of where things are going and better intelligence? Maybe just give us a sense of how you just see your confidence in predicting and forecasting the business and making long-term investments given what you've done in AI. That's the first question. Thank you. Mike Karanikolas: AI is certainly having a huge impact on our ability to properly optimize our inventory, forecast what categories are going to do the best, analyze recent trends in the business. At the same time, our focus was primarily on how do we leverage those things, right, to increase sales, increase demand, and we've been seeing some really nice results the past four quarters. Certainly, a meaningful portion of that, I think, is driven by a lot of these enhancements, both from a back end in terms of optimizing category mix and product mix and those sorts of things to meet demand of customers. Then on the front end is when customers visit, to make sure we're putting the right products in front of people. What's exciting to me is that it's so early on, right? I think we have much cooler things, both already kind of in beta and test internally, then certainly in the works as part of longer term plans that can really help us optimize things. That said, as you look from a kind of planning the forecast standpoint, I think for us, primarily, the benefit of AI and technology to date has really been optimizing the mix on the marketing side, the inventory side, what to show to customers. There's still going to be some level of uncertainty as far as consumer confidence and kind of how the winds shift in further out quarters. We feel good about our ability to project those things. Our target for this year was to achieve double digit plus growth, and I'd say we're well on our path to achieving that forecast. Jay Sole: Got it. Maybe one other question. Can you just talk about the token cost? As you've invested more in AI, have you been able to control token cost? How have you done that? Is it impacting SG&A? Any thoughts on that would be helpful. Thank you. Mike Karanikolas: Yeah. That's a big area of focus. At the same time, we're trying to strike the balance of not squashing innovation internally. You're right. Certainly part of, not a meaningful part, but not negligible either, some of the increased G&A is token cost. We have a number of internal optimization strategies that we've both executed on and are continuing to execute on. At the same time, we're trying to balance that with giving our employees some reasonable free rein to innovate, even if it means we're not fully optimized because we think the value of that innovation is going to pay off big in the long term. Jay Sole: Maybe, Mike, if I can ask one more, it's just with some of the developments in these open source models that seem to be much lower cost. Is that an opportunity for the company? How do you think about open source versus maybe closed source models? Mike Karanikolas: 100%. We're already leveraging open source models in a very significant way. We already have optimizations in place that can route certain types of tasks and queries automatically to where we think it's going to still produce the result we need, but with the cheaper open source model. Yeah. I think long-term open source is, in some of these lower cost models, is going to be a huge part of the mix. It's already a huge part of our mix. At the same time, kind of on the sort of foregrounds of innovation, I know a lot of times our employees like to use the latest and greatest. We give them some leash to do that, even if it isn't fully optimized, just because, again, I want to strike that balance between giving them some free rein while controlling costs. 100%, equally important to the AI innovation is parallel cost efforts and optimization efforts, constantly analyzing, okay, what work was done on the frontier models that we can move to a cheaper model or an open source model. The difference between the frontier models and the open source is that gap is diminishing day by day. We feel very good about our efforts there and long-term, our abilities to optimize cost versus benefit. Jay Sole: Got it. Super interesting. Thank you so much. Mike Karanikolas: Yeah. Operator: Your next question comes from the line of Oliver Chen from TD Cowen. Your line is live. Oliver Chen: Hi, thank you. The active customer growth and top line has been impressive. How do you see where you are relative to past longer term algorithms? You clearly have a lot of investments as well that you're making on the OpEx side that seem really prudent for where you're going. How might we contrast this and how you're thinking about the algorithm top and bottom line relative to years past and the snapshot we're seeing now? On that topic of AI, Mike, reinforcement learning and how that intersects with personalization, is that on your mind as a material driver? Specifically, as you continue to think about physical, how can you do the rapid AB testing and the inventory management and the personalization engines that you run and physically, or what's on your mind for scaling that? I think it can be harder to do stuff that you do digitally so quickly within seconds in a physical environment. Thank you. Mike Karanikolas: Yeah, 100%. I'll, just to continue the AI thread, I'll start on the AI question with regards to the impact of AI on personalization and just bringing the right product to customers at the right time. I think the impact there has the potential to be absolutely huge. I think we're very early on. I think we have great personalization capabilities compared to others. I think we're just scratching the surface of what we can do with that, particularly from the standpoint of AI contributions. At the same time, I'm not saying want to say every week, but it seems like every week, or at least every month, the team comes to me with something new and innovative and interesting, and we have some really nice things in the works. AI-driven further enhancements to our search. I know search doesn't sound sexy, it's really the building block of how do you get customers the product that they want at kind of the right time, what they're looking for, that are even better than the enhancements that we've already made. That I think actually we can roll out in a nice way. We can use that same building block to optimize the inventory management further. Just further ability of AI to really dissect and diagnose products and understand how to categorize things, and the difference between one product and another, and what consumers are really gravitating towards. Opportunity for that is absolutely huge. With regards to physical stores, you're right. It's a different beast for us. For us, there's a learning curve on some of those elements. Including us, I don't want to say discovering, because it's common sense, on the site, you can change an algorithm or swap out inventory instantly at no cost in terms of what you're showing to a customer. Obviously, with physical, you have to be much more deliberate. At the same time, what I'm really excited about is our continued growing abilities on the physical side with regards to just all of the historical learnings and infrastructure and team. Basically, maybe some other stores already have in place, really leveraging in the kind of innovation that I think only REVOLVE or certainly very few can bring to the table, including some of the AI innovations to analyze the video feeds and give us real-time metrics on what's going on in the store and diagnoses and recommendations and all that. I think it's quite exciting the direction that we're going in. As Michael said, we want to make sure we get it right before moving too fast, it's quite exciting for us. Finally, with regards to the active customer and top-line growth, yeah, we're really pleased. I think it's a combination of things. I think from a sort of trajectory change, we're still in the early innings on some of these big growth initiatives, physical and Grow-Good. Certainly, they're contributing some growth, but I wouldn't say at this point that's the large part of the growth acceleration you're seeing is from those initiatives. They're already starting to contribute a bit. I think the rest of it is a lot of the core things, right, that we've been doing in terms of how we've been executing and us getting better and better at how we execute the core business. I think you're really seeing that in some of the acceleration of the numbers there. Oliver Chen: Is low double digit the new normal for active customer growth? When you think about cohorts and demographics, is that changing as you continue to scale or is it holding? Should OpEx grow faster than sales? Acknowledging that you're making investments that are accretive, but over a certain time horizon. Jesse Timmermans: Yeah. I don't want to necessarily say that low doubles is the new norm for active customers. Maybe what I would say is that net sales growth and active customer growth get closer together and align closer than they have in the past, especially given all the wild comps we've had over the last five years. Looking ahead, net sales growth into double-digit, active customer growth into double-digit. Variable costs are largely variable. Some leverage on marketing as we exit this investment year. G&A is where you see the real leverage as we comp the growth initiatives and if we're growing top line double-digit and G&A mid-single-digits. The other big piece, the big driver there is growth margin. If you back out the tariff refunds year to date, we're at 53.8%, and our target is to be at 55%. You get a solid point or more out of gross margin, and then the leverage on G&A gets you up to that profit growth that we'd expect to see in 2027 and beyond. Oliver Chen: Thanks very much. Best regards. Jesse Timmermans: Thanks, Oliver. Operator: Your final question comes from the line of Simeon Siegel from Guggenheim. Your line is live. Jon Elias: Hi, this is Jon Elias on for Simeon Siegel. Thanks for taking our questions. You noted lower full price sales mix this quarter. Just curious, are there any product categories you would call out there? It's great to see the buyback activity in 2Q. How should we think about capital allocation for the rest of the year? Jesse Timmermans: Yeah. On the full price mix, it is a little bit lower year-over-year. We had a really phenomenal full price mix last year, so it has come down off of that. Still starts with an A, it's still very healthy, and that's been increasing at a good rate over time. We feel good about that mix. On capital allocation, we feel really good about our position in that we're able to not only buy back shares, but invest in these growth initiatives at the same time, and pursue opportunistic M&A. It's a really great place to be. No comment on the balance of the year in terms of M&A or buyback, but there is continued growth investments in the back half of the year that's reflected in our guidance. Jon Elias: Thank you very much. Have a good one. Operator: That concludes our question-and-answer session. I will now turn the call back over to management for closing remarks. Mike Karanikolas: Thank you for joining us once again. We're very proud of another quarter, and particularly the healthy top line, and exiting with that even healthier top line. While we have many investments that we've discussed, many of them are not contributing in meaningful ways yet. We're very excited for the results in future quarters and years ahead. Thanks, guys. Operator: This concludes today's conference call. You may now disconnect. Before you buy stock in Revolve Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Revolve Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Revolve Group. The Motley Fool has a disclosure policy. Revolve (RVLV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Revolve Group, Inc.? Here are five stocks we like better. Revolve reported strong Q2 growth: Net sales rose 12% year over year to $347 million, while active customers surpassed 3 million and orders increased 11%. July sales accelerated approximately 18%, supporting management’s expectation for full-year double-digit revenue growth. Profitability benefited from tariff refunds and operational improvements: Gross margin expanded to 56.6%, including a roughly 160-basis-point benefit from approximately $8 million in IEEPA tariff refunds. Adjusted EBITDA rose to $27 million, although increased marketing and other investments are expected to reduce the full-year adjusted EBITDA margin by about two percentage points. The company is investing in future growth: Initiatives include the REVOLVE Los Angeles owned brand, a third physical store, the fast-selling Grow-Good beauty venture with Cardi B, and AI-powered shopping and analytics tools. International sales grew 16%, led by strength in Mexico and a rebound in the Middle East. Is Abercrombie & Fitch Stock's Next Stop $40 or $20? Revolve Group (NYSE:RVLV) reported second-quarter 2026 net sales of $347 million, up 12% from a year earlier, as growth accelerated across its REVOLVE and FWRD segments, domestic and international markets, and customer base. Management said July sales rose approximately 18% year over year, reinforcing its expectation for double-digit revenue growth for the full year. Co-founder and Co-CEO Mike Karanikolas said the company recorded its strongest quarterly new-customer acquisition performance in four years. Trailing 12-month active customers rose 11% year over year, increasing by 115,000 during the quarter and surpassing 3 million for the first time. Total orders increased 11% to 2.7 million, while average order value was $299, compared with $300 a year earlier. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Are These 3 Clothing Retailers All Dressed Up And Ready To Rally? “We had a very solid quarter, highlighted by strong and profitable growth across segments and geographies,” Karanikolas said. He attributed the momentum to investments in brand building, technology and artificial intelligence, site experience, and category expansion. REVOLVE segment sales rose 13% year over year in the second quarter, while FWRD sales increased 11%. Domestic revenue advanced 11%, and international sales climbed 16%. International markets represented nearly 23% of total net sales, the company’s highest reported mix. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Karanikolas said Mexico again posted particularly strong growth, while the Middle East rebounded to double-digit growth after a weak start to the quarter. Management said it capitalized on demand in the region while some competitors reduced activity. Fashion apparel outpaced overall sales growth, led by wardrobe-essential categories including tops, pants, outerwear, intimates, shorts and jeans. Beauty and men’s products also grew faster than the overall business on a combined basis, according to management. → No Hangover: Revisiting Microsoft One Week After Earnings During the question-and-answer session, Karanikolas said July’s sales acceleration reflected internal execution rather than a broad consumer trend. He cited heavier marketing investments during the second quarter and said the company was seeing broad-based strength across revenue, customer acquisition, segments and geographies. Second-quarter gross margin was 56.6%, up from 54.1% a year earlier. The result included an approximately 160-basis-point benefit from refunds of tariffs imposed under the International Emergency Economic Powers Act, or IEEPA. Excluding the refunds, gross margin increased roughly 90 basis points, which management said was driven primarily by AI- and data-based recalibration of markdown algorithms. The company received and recognized most of approximately $8 million in filed IEEPA tariff refund claims during the quarter. Net income was $19 million, or $0.26 per diluted share, including a $0.06-per-share benefit from the refunds. Adjusted EBITDA rose to $27 million from $23 million a year earlier, including a $5.6 million benefit from tariff refunds. Chief Financial Officer Jesse Timmermans said the company continued to invest heavily in longer-term growth initiatives, particularly its REVOLVE namesake label, physical retail expansion and joint venture with Cardi B. Those initiatives are expected to reduce full-year adjusted EBITDA margin by about two percentage points, with roughly 150 basis points related to marketing and 50 basis points to general and administrative spending. Marketing expense reached 16.5% of sales in the quarter, up 130 basis points year over year. Selling and distribution costs rose to 17.9% of sales, pressured by higher customer-shipment costs and fuel surcharges in international markets. The company also cited elevated logistics costs tied to geopolitical conditions. For the third quarter, Revolve expects gross margin of 53.5% to 54%, fulfillment costs of approximately 3.4% of sales, selling and distribution costs of approximately 17.5% of sales, marketing investment of about 15% of sales, and G&A expense of approximately $43.5 million. It maintained its full-year gross-margin outlook of 53.5% to 54% and raised its full-year marketing outlook to 15.8% to 16% of sales. Full-year G&A is expected to be $170 million to $172 million. Co-founder and Co-CEO Michael Mente said owned-brand penetration within the REVOLVE segment increased year over year for a sixth consecutive quarter. The company introduced the second collection for its REVOLVE Los Angeles namesake label in late June, and Mente said early sell-through was stronger than that of the first assortment. The initial REVOLVE Los Angeles collections emphasize higher-priced statement pieces designed to establish a premium positioning, Mente said. The company plans over time to extend REVOLVE-branded products into more categories and price points, with the goal of building more meaningful sales volume beginning in 2027 and beyond. FWRD’s 11% sales growth was aided by a rebound in handbags, including pre-owned luxury handbags sold through FWRD Renew. Mente also highlighted FWRD’s Summer Club capsule, which featured exclusive products from brands including Missoni, The Attico, Cult Gaia and SAME. Net sales from the capsule increased nearly 50% year over year, he said. FWRD also recently added Christian Louboutin’s women’s and men’s collections. In physical retail, Revolve expects to open its third store in the fourth quarter at Aventura Mall in Greater Miami. Management described South Florida as a major existing customer market and said the location will support events, activations and greater penetration of owned brands. The company is taking a measured approach to store expansion while building retail systems, technology and operating processes, Mente said. Revolve’s Grow-Good beauty brand, developed through its joint venture with Cardi B, sold through its first three product drops within hours, with certain products selling out in minutes, according to management. The company plans a larger inventory restock beginning this fall. Mente said Grow-Good had reached 670,000 Instagram followers, while several hundred thousand consumers had requested back-in-stock notifications. Products carry an average 4.9 out of 5 customer-review score, and nearly one-third of orders in early July came from repeat customers. Management said Grow-Good’s gross margin is directionally similar to the company’s owned-brand assortment and that its customers have little overlap with REVOLVE and FWRD shoppers. Karanikolas also outlined AI investments, including planned testing of an on-site image-search capability that will allow shoppers to upload a photo and locate exact or similar items in the company’s assortment. Internally, the company has developed AI tools that allow employees to query its data warehouse in plain language and analyze retail-store video feeds to track traffic, conversion and other store metrics. Revolve ended the quarter with $312 million in cash and cash equivalents and no debt. Inventory was $276 million, up 25% year over year, though Timmermans said the comparison was affected by tariff-related receipt delays in the prior-year quarter. The company repurchased nearly 500,000 Class A shares at an average price of $19.98, using about $10 million and reducing Class A shares outstanding by more than 1%. Revolve Group, Inc operates as a leading online fashion retailer primarily serving millennial and Gen Z consumers through its flagship e-commerce platform. The company offers a curated assortment of apparel, accessories and beauty products from more than 500 established and emerging brands, alongside private label labels covering contemporary and premium segments. With a focus on trend-driven merchandise and seamless user experience, the website features shoppable editorial content and digital styling advice aimed at strengthening customer engagement and brand loyalty. Founded in 2003 and headquartered in Cerritos, California, Revolve has expanded its footprint beyond North America by launching localized sites and logistics centers in Europe and the Middle East. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Revolve Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Spectrum Brands Holdings, Inc. SPB delivered strong third-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate and improved year over year.SPB reported adjusted earnings from continuing operations of $2.79 per share, increasing 125% from $1.24 in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.49. The earnings improvement was primarily buoyed by lower outstanding shares and increased adjusted EBITDA.Net sales increased 7.7% year over year to $753.3 million and surpassed the Zacks Consensus Estimate of $732 million. Growth across all three businesses, led by Home & Garden, supported higher profitability, while adjusted EBITDA rose 106.7% to $158.3 million. Excluding $60.6 million of tariff refunds, adjusted EBITDA still grew 27.5% to $97.7 million, reflecting operational improvements.Following the earnings release, SPB’s shares jumped more than 8% during the trading session. In the past three months, the stock has gained 9% compared with the industry’s 16.8% growth. Spectrum Brands Holdings Inc. price-consensus-eps-surprise-chart | Spectrum Brands Holdings Inc. Quote Spectrum Brands’ net sales improved across all three businesses, with organic net sales excluding favorable foreign exchange increasing 6.6%. The company said growth was driven by market share gains, favorable weather conditions and stronger retailer ordering patterns.Gross profit increased 40.2% year over year to $370.4 million, while the gross margin expanded substantially to 49.2%. Higher sales volume, pricing, reduced trade spend, favorable mix and cost-improvement efforts contributed to the improvement, partly offset by higher tariff costs.The company’s adjusted EBITDA margin expanded substantially to 21% from 10.9% in the prior-year quarter. Excluding tariff refunds, adjusted EBITDA margin improved 200 basis points, reflecting stronger gross margins and higher volumes despite increased investment spending. Global Pet Care sales rose 3.3% year over year to $263.7 million, with organic net sales increasing 2.9%. The segment’s sales lagged the Zacks Consensus Estimate of $266 million.Companion Animal sales increased in the mid-single digits, while Aquatics sales declined in the mid-single digits. North American growth was supported by Companion Animal with modest category growth and market share gains across key brands. In EMEA, organic sales declined as retailers accelerated orders into the second quarter ahead of the SAP S/4HANA ERP implementation.Global Pet Care adjusted EBITDA increased 91.8% to $84.4 million, and adjusted EBITDA margin expanded substantially to 32% from 17.2%. Excluding tariff refunds, adjusted EBITDA was $51.9 million, up $7.9 million year over year, driven by pricing, favorable mix and cost-improvement efforts. Home & Garden generated the strongest top-line performance among SPB’s segments, with sales increasing 19% year over year to $225.2 million. Organic net sales rose 19.1%, supported by favorable weather conditions improving point-of-sale trends and retailer replenishment order patterns. The segment’s sales exceeded the Zacks Consensus Estimate of $211 million.The segment also benefited from above-market growth in key brands. Adjusted EBITDA increased 30.6% to $50.4 million, while the adjusted EBITDA margin expanded 200 basis points to 22.4%.Excluding tariff refunds, Home & Garden adjusted EBITDA increased to $48.4 million, up $9.8 million from the prior-year quarter. Higher sales and better productivity were key contributors, partially offset by higher trade spend and inflation. Home & Personal Care sales increased 3.6% year over year to $264.4 million, while organic net sales excluding foreign exchange rose 1.1%. Personal Care sales increased in the mid-teens, while Home Appliances sales declined in the mid-single digits. The segment’s sales exceeded the Zacks Consensus Estimate of $253 million.EMEA sales improved across both Home Appliances and Personal Care, helped by a one-time decline in trade spend, though competition continued to pressure performance. North American sales declined in the mid-single digits, primarily due to weakness in Home Appliances and the exit from the DRTV business.HPC adjusted EBITDA increased substantially to $40.6 million from $7.0 million in the prior-year quarter. Excluding tariff refunds, adjusted EBITDA rose to $14.4 million, supported by pricing, cost improvement and positive foreign exchange, partly offset by soft volumes and higher tariff costs. As of June 28, 2026, SPB had a cash balance of $258.9 million. It had an outstanding debt of $633 million, with no outstanding borrowings on the revolver, $496.1 million of senior unsecured notes and $60 million of a term loan within its HPC business. The company had a total liquidity of $753.7 million, comprising the undrawn capacity on its cash flow revolver of $494.8 million. This Zacks Rank #4 (Sell) company exited the quarter with a net long-term debt, net of current portion, of $603.6 million. The company maintained its fiscal 2026 net sales outlook for flat to low single-digit growth. Based on strong year-to-date performance, SPB increased its adjusted EBITDA expectation, excluding tariff refunds, to mid-single-digit growth. It continues to expect adjusted free cash flow of approximately 50% of adjusted EBITDA, excluding tariff refunds.Management also highlighted progress on its ERP transformation, completing the first SAP S/4 HANA deployment within Home & Personal Care and implementing the system across remaining Global Pet Care and Home & Garden entities. The company expects the remaining HPC EMEA implementation to be completed later in the year. Duluth Holdings Inc. DLTH sells casual wear, workwear, outdoor apparel, and accessories for men and women in the United States. At present, DLTH sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for current fiscal-year sales and earnings implies a decline of 9.6% and 267%, respectively, from the year-ago reported figures. DLTH delivered a trailing four-quarter earnings surprise of 107.5%, on average.Revolve Group, Inc. RVLV operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. It currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales implies growth of 10.6% from the year-ago figures. RVLV delivered a trailing four-quarter average earnings surprise of 52.1%.Vince Holding Corp. VNCE provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, VNCE carries a Zacks Rank of 2.The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 7.2% and 34.1%, respectively. VNCE has delivered a trailing four-quarter earnings surprise of 635.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report Vince Holding Corp. (VNCE) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved third consecutive quarter of double-digit net sales growth, driven by record new customer acquisition and increased engagement from existing cohorts. Realized gross margin expansion (excluding one-time tariff benefits) through AI-driven recalibrations of markdown algorithms and a reduction in product return rates. Experienced a significant rebound in the Middle East market by opportunistically capturing demand as competitors pulled back, contributing to record international sales mix. Leveraged proprietary AI tools to optimize store visual feeds and internal data querying, bridging the analytical gap between e-commerce and physical retail operations. Successfully launched the Grow-Good beauty joint venture with Cardi B, which attracted nearly all incremental customers and achieved high repeat purchase rates despite inventory constraints. Advanced the 'REVOLVE Los Angeles' namesake label as a premium brand-building initiative designed to provide a halo effect for the broader ecosystem before scaling volume in 2027. Management expects double-digit revenue growth for the full year 2026, supported by an 18% year-over-year net sales growth observed in July, representing a six-point acceleration from the second quarter. Strategic investments in physical retail, own brands, and joint ventures are expected to impact 2026 adjusted EBITDA margins by approximately two percentage points. Planned expansion into physical retail continues with a third store opening in Miami's Aventura Mall during Q4, targeting high-traffic international and local demographics. Anticipates a larger restock of Grow-Good inventory in the fall to meet outsized demand, which is expected to drive meaningful top-line contribution into 2027. Guidance assumes continued pressure on full-price mix and elevated logistics costs due to geopolitical fuel surcharges, partially offset by improving product return rates. Recognized a $5.6 million benefit from IEEPA tariff refunds in Q2, with an additional $1.4 million in potential claims outstanding not yet included in guidance. Inventory increased 25% year-over-year, though management notes this is skewed by prior-year tariff delays; on a two-year stacked basis, sales growth outpaced inventory growth. Elevated logistics costs remain a headwind, specifically variable fuel surcharges on international shipments driven by the dynamic geopolitical environment. Repurchased nearly 500,000 shares in Q2, representing a return of approximately $10 million to shareholders while maintaining a debt-free balance sheet. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributes the acceleration to internal execution and Q2 marketing investments paying dividends rather than a broader shift in consumer trends. Growth was described as broad-based across segments, with international markets and category expansions in men's and beauty serving as key contributors. The elevated spending is concentrated in a 'foundational year' for long-term initiatives like physical retail and the namesake label. Management expects to see meaningful G&A leverage in 2027 and beyond as these initiatives move past the initial heavy investment phase. While Grow-Good's lower price points slightly pressured consolidated AOV, the business is highly accretive to gross margins and attracts incremental customers. Management is comfortable with the AOV trade-off given the high repeat purchase rates and strong unit economics of the beauty category. Management is balancing innovation with cost by routing simpler tasks to cheaper open-source models while allowing 'frontier' models for high-value R&D. G&A includes some non-negligible token costs, but the gap between open-source and proprietary model performance is narrowing, allowing for future cost optimization.

Interparfums, Inc. IPAR reported second-quarter 2026 results, wherein the bottom line missed the Zacks Consensus Estimate and experienced year-over-year declines. However, the top line improved year over year. Interparfums posted quarterly earnings of 95 cents per share, which decreased 4% from 99 cents reported in the prior-year period. The metric missed the Zacks Consensus Estimate of $1.04 per share. Interparfums, Inc. price-consensus-eps-surprise-chart | Interparfums, Inc. Quote Consolidated net sales rose 2% to $341 million from $333.9 million in the year-ago quarter. Organic sales rose 1%, while excluding headwinds related to the war in the Middle East, second-quarter organic sales increased 4%. Foreign currency movements provided a positive impact of 1%. European-based operations’ sales declined 4%, reflecting a 5% organic decrease that was partially offset by favorable foreign currency movements. U.S.-based operations delivered an 18% sales increase, supported by 17% organic growth against a softer year-ago base. Interparfums posted a consolidated gross margin of 65.5%, down 70 bps from 66.2% in the prior-year quarter. Selling, general and administrative expenses increased to 51.2% of sales from 48.5% a year earlier. The rise reflected higher brand marketing spending, royalty costs that grew faster than sales due to brand mix, and elevated logistics expenses associated with supply-chain transitions and channel mix.Operating income declined 17.3% to $48.9 million, while the operating margin fell 330 basis points to 14.4%. We expected an operating margin of 18.2% for the quarter. Interparfums ended the second quarter of 2026 with $211 million in cash, cash equivalents and short-term investments. Long-term debt approximated $143 million as of June 30, 2026, and the company declared its regular quarterly cash dividend of 80 cents per share, payable Sept. 30, 2026, to shareholders of record on Sept. 15. Interparfums reaffirmed its 2026 guidance, projecting net sales of $1.48 billion and earnings per share of $4.85. Management continues to monitor the war in the Middle East, inflation-related supplier pricing and changes in consumer demand.Shares of this Zacks Rank #2 (Buy) company have gained 35.6% in the past three months compared with the industry’s growth of 8%. Image Source: Zacks Investment Research Duluth Holdings DLTH sells casual wear, workwear, outdoor apparel and accessories for men and women in the United States. DLTH presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Duluth Holdings’ current fiscal-year earnings implies growth of 39.5% from the year-ago figure. DLTH delivered a trailing four-quarter earnings surprise of 107.5%, on average. Vince Holding Corp. VNCE provides luxury apparel and accessories in the United States and internationally. At present, the company carries a Zacks Rank #2. VNCE delivered a trailing four-quarter earnings surprise of 635.7%, on average. The Zacks Consensus Estimate for Vince Holding’s current fiscal-year sales and earnings indicates growth of 8.5% and 34.1%, respectively, from the year-ago figures. Revolve Group, Inc. RVLV operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. It currently holds a Zacks Rank of 2. RVLV delivered a trailing four-quarter average earnings surprise of 52.1%.The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales implies growth of 10.6%, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interparfums, Inc. (IPAR) : Free Stock Analysis Report Vince Holding Corp. (VNCE) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revolve Group, Inc. RVLV delivered a strong second quarter of 2026, marked by broad-based sales growth, accelerating customer acquisition and improved profitability. Double-digit gains across both segments and geographies reflected accelerating customer demand, while a lower return rate and better markdown execution supported margins. The company continued to invest in owned brands, beauty, international expansion and physical retail.Earnings of 26 cents per share increased 85.7% year over year and surpassed the Zacks Consensus Estimate of 20 cents by 30%. Net sales rose 12.4% to $347.4 million and topped the consensus mark of $343 million by 1.2%. Results included a 6-cent-per-share benefit resulting from IEEPA tariff refunds received during the quarter.Demand indicators remained favorable. Trailing 12-month active customers increased 11% year over year to 3.041 million, which exceeded the Zacks Consensus Estimate of 2.954 million. Total orders grew 11% to 2.701 million, surpassing the consensus estimate of 2.649 million. Average order value was $299 compared with $300 a year earlier, with the slight decline reflecting a greater contribution from lower-priced Grow-Good beauty products. The Zacks Consensus Estimate of average order value was pegged at $303. Revolve Group, Inc. price-consensus-eps-surprise-chart | Revolve Group, Inc. Quote Revolve’s segment results underscored the balance of the quarter’s top-line performance. Net sales in the REVOLVE segment rose 13% year over year to $302.5 million, while FWRD net sales increased 11% to $44.9 million. This marked the third consecutive quarter of double-digit growth across both operating segments. The Zacks Consensus Estimate of the REVOLVE and FWRD segments’ net sales was pegged at $296 million and $45.2 million, respectively, in the second quarter.Geographically, U.S. net sales climbed 11% year over year to $269.1 million, beating the consensus estimate of $264 million. International net sales grew 16% to $78.4 million and accounted for nearly 23% of total revenues, the highest mix reported by the company. Management noted growth across all regions, with Mexico remaining strong and the Middle East rebounding from a weak start to deliver double-digit growth for the quarter. RVLV posted gross profit of $196.7 million, up 18% year over year, as gross margin expanded 254 basis points to 56.6%. The increase included a 162-basis-point benefit from IEEPA tariff refunds. Excluding the refunds, gross margin still improved about 92 basis points, helped by AI and data-driven recalibration of markdown algorithms.The REVOLVE segment’s gross profit increased 18% year over year to $176.9 million. Its segment gross margin was about 58.5%, compared with roughly 55.9% a year earlier, and included a $5.2 million tariff-refund benefit.FWRD gross profit rose 15% to $19.7 million. The segment’s gross margin improved to about 44% from roughly 42.2% in the prior-year quarter and included a $0.5 million tariff-refund benefit.Income from operations increased 23% year over year to $22.1 million. The operating margin expanded to 6.4% from 5.8%, despite higher investments in marketing, physical retail, the REVOLVE Los Angeles label and the Grow-Good beauty venture.Adjusted EBITDA rose 17% to $26.8 million, including a $5.6 million benefit from tariff refunds. The adjusted EBITDA margin increased 30 basis points year over year to 7.7% from 7.4%. Revolve increased marketing spending to support major growth initiatives during the second quarter. Marketing expenses rose to $57.5 million, or 16.5% of net sales, from $47.1 million, or 15.2%, in the year-ago quarter. The increase mainly reflected investments in the REVOLVE Los Angeles namesake label, brand-building initiatives and newer marketing channels, including connected television.Selling and distribution expenses increased to $62.1 million, or 17.9% of net sales, from $53.8 million, or 17.4%, a year earlier. Management attributed the reduced efficiency to higher customer shipping costs, including variable fuel and other surcharges in international markets, partially offset by a lower product return rate.Fulfillment costs were $11.6 million, or 3.3% of net sales, compared with $9.8 million, or 3.2%, in the prior-year quarter. The increase primarily reflected higher compensation expenses for fulfillment staff, partly offset by the lower return rate.General and administrative expenses rose to $43.4 million, or 12.5% of net sales, from $38.3 million, or 12.4%. Higher spending was tied largely to investments in the REVOLVE Los Angeles label, physical retail expansion and the Grow-Good beauty venture developed with Cardi B. RVLV used $8.2 million of cash in operating activities during the second quarter, compared with $12.6 million generated in the year-ago period. Free cash flow was negative $10.9 million versus positive $9.6 million a year earlier, primarily because unfavorable working-capital movements more than offset the increase in net income.For the first six months of 2026, operating cash flow remained positive at $41.2 million, while free cash flow totaled $34 million. The company repurchased 497,675 Class A shares for $9.9 million during the quarter at an average price of $19.98 per share.The balance sheet remained a key financial strength. Cash and cash equivalents were $311.6 million at June 30, 2026, up slightly from $310.7 million a year earlier and the company remained debt-free.Inventory ended the quarter at $275.8 million, up 25% year over year and 9.5% from the end of 2025. Management noted that the year-over-year comparison was affected by tariff-related shipment delays that reduced inventory in the prior-year period. On a two-year stacked basis, net sales growth exceeded inventory growth by approximately 5 percentage points. Revolve said the second REVOLVE Los Angeles collection delivered stronger early sell-through than the initial assortment. Management plans to establish the namesake label with premium products before expanding into additional categories and price points to support more meaningful sales volumes from 2027 onward.Grow-Good beauty products, developed with Cardi B, also generated strong early demand, with the first three product drops selling out within hours. The company expects to begin receiving a significantly larger inventory restock in the fall. Management added that Grow-Good carries gross margins that are highly accretive to the overall business and attracts customers with limited overlap with REVOLVE and FWRD.Management also emphasized international expansion, physical retail and artificial intelligence. Mexico continued to post strong growth following marketing and service improvements, while the Middle East rebounded from a weak start to deliver double-digit growth for the quarter. Revolve remains on track to open its third physical store at Aventura Mall in greater Miami during the fourth quarter.On the technology front, RVLV plans to test an AI-powered image-search feature that will allow shoppers to upload a photograph and find identical or similar products. The company is using AI-powered internal analytics tools that allow employees to query enterprise data in plain English while monitoring traffic and conversion trends across its physical stores. Revolve’s updated 2026 outlook reflects continued investment in growth initiatives amid geopolitical uncertainty, tariffs, inflation, supply-chain pressures and foreign currency volatility. Management noted that the gross margin forecast excludes any additional IEEPA tariff refunds.For 2026, RVLV maintained its gross margin outlook at 53.5-54%. Fulfillment expenses are still expected to be 3.2-3.4% of net sales, while selling and distribution expenses remain projected at 17.1-17.3%.The company raised its marketing expense forecast to 15.8-16% of net sales from 15.3-15.8%, reflecting second-quarter spending and continued investment in long-term growth initiatives. General and administrative expense guidance was also increased to $170-$172 million from $164-$168 million. The effective tax rate is still expected to be 24-26%.For the third quarter of 2026, Revolve expects gross margin of 53.5-54%. Fulfillment expenses are projected at approximately 3.4% of net sales, while selling and distribution expenses are expected to account for roughly 17.5%.Marketing expenses are forecasted at approximately 15% of third-quarter sales, while general and administrative expenses are expected to be about $43.5 million. Management also said fourth-quarter marketing spending is likely to exceed 16% of sales because of planned brand-building investments. RVLV Stock Past Three-Month Performance Image Source: Zacks Investment Research The outlook follows an encouraging start to the third quarter, with July net sales increasing approximately 18% year over year. Management continued to target double-digit revenue growth for 2026.Shares of this Zacks Rank #2 (Buy) company have risen 30.6% over the past three months compared with the industry’s 8.7% growth. Abercrombie & Fitch Co. ANF operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 6.1% and 4.9%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 8.1%.American Eagle Outfitters Inc. AEO is a specialty retailer of casual apparel, accessories and footwear for men and women. The company carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales implies growth of 17.3% and 8.8%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%.Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. Designer Brands also carries a Zacks Rank #2 at present.The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales indicates growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LOS ANGELES, Aug. 4, 2026 /PRNewswire/ -- Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the second quarter ended June 30, 2026. "We delivered a very solid quarter, highlighted by double-digit net sales growth across REVOLVE, FWRD, domestic and international for the third consecutive quarter and accelerated growth in active customers that reflects increasing engagement with next-generation consumers," said co-founder and co-CEO Mike Karanikolas. "We're encouraged by the top-line momentum across our business and especially the breadth of initiatives underway that we believe will support continued profitable growth for years to come," said co-founder and co-CEO Michael Mente. "Our investments in building our physical retail capabilities, the continued development of our first-ever REVOLVE namesake label within our Owned Brand portfolio, and the successful launch of Grow-Good beauty products created in partnership with Cardi B lay the groundwork for meaningful growth opportunities ahead." Second Quarter 2026 Financial Summary Operational Metrics Additional Second Quarter 2026 Metrics and Results Commentary Trailing 12-month active customers grew to 3,041,000 as of June 30, 2026, an increase of 11% year-over-year, our highest year-over-year growth rate in nearly three years. Net sales were $347.4 million, a year-over-year increase of 12%. Gross profit was $196.7 million, which was positively impacted by a $5.6 million reduction in cost of sales due to IEEPA tariff refunds received during the quarter. Gross profit increased 18% year-over-year from $167.1 million in the second quarter of 2025. Gross margin was 56.6%, an increase of 254 basis points year-over-year that was positively impacted by an increase of 162 basis points from IEEPA tariff refunds received during the quarter. Excluding the tariff refunds, gross margin increased approximately 90 basis points year-over-year compared to 54.1% in the second quarter of 2025. Fulfillment costs were $11.6 million, or 3.3% of net sales, compared to $9.8 million, or 3.2% of net sales, in the second quarter of 2025. Selling and distribution costs were $62.1 million, or 17.9% of net sales, compared to $53.8 million, or 17.4% of net sales, in the second quarter of 2025. The reduced efficiency year-over-year as a percentage of net sales was primarily due to higher shipping rates, partially offset by a decrease in our product return rate year-over-year. Marketing costs were $57.5 million, or 16.5% of net sales, compared to $47.1 million, or 15.2% of net sales, in the second quarter of 2025. The increased marketing investment year-over-year as a percentage of net sales primarily reflects incremental marketing investments to support various growth initiatives, including our first-ever namesake label, REVOLVE Los Angeles, within our owned brand assortment. General and administrative costs were $43.4 million, or 12.5% of net sales, compared to $38.3 million, or 12.4% of net sales, in the second quarter of 2025. Other income, net was $2.3 million compared to $2.9 million recorded in other expense in the second quarter of 2025. Other expense, net in the prior-year quarter was negatively impacted by a non-cash charge of $2.4 million related to the disposal of a subsidiary and higher-than-typical foreign currency exchange losses. Net income was $18.6 million, which was positively impacted by $5.9 million due to IEEPA tariff refunds received during the second quarter ($4.4 million, net of tax effects). This compares to net income of $10.0 million in the second quarter of 2025, which was negatively impacted by the non-cash charge related to the disposal of a subsidiary and higher-than-typical foreign currency exchange losses as noted above, and a higher-than-normal effective tax rate. Adjusted EBITDA was $26.8 million, which was positively impacted by a $5.6 million reduction in cost of sales due to IEEPA tariff refunds received during the second quarter. Adjusted EBITDA increased 17% year-over-year compared to $22.9 million in the second quarter of 2025. Diluted earnings per share (EPS) was $0.26, which was positively impacted by $0.06 per diluted share resulting from IEEPA tariff refunds received during the second quarter. This compares to diluted EPS of $0.14 in the second quarter of 2025, which was negatively impacted by the charge from disposal of a former subsidiary and higher-than-typical foreign currency exchange losses noted above, as well as a higher-than-normal effective tax rate. Additional Net Sales Commentary REVOLVE segment net sales were $302.5 million, a year-over-year increase of 13%. FWRD segment net sales were $44.9 million, a year-over-year increase of 11%. Domestic net sales were $269.1 million, a year-over-year increase of 11%. International net sales were $78.4 million, a year-over-year increase of 16%. Cash Flow and Balance Sheet Net cash (used in) provided by operating activities was $(8.2) million in the second quarter and $41.2 million inthe 6-month year-to-date period ended June 30, 2026, compared to $12.6 million and $57.8 million, respectively, in the comparable 2025 periods. The reduced operating cash flow year-over-year for the three- and six-month periods of 2026 primarily reflects unfavorable changes in working capital, partially offset by higher net income. Free cash flow was $(10.9) million in the second quarter and $34.0 million in the 6-month year-to-date period ended June 30, 2026, compared to $9.6 million and $52.4 million, respectively, in the comparable 2025 periods. Stock repurchases were $9.9 million for the second quarter ended June 30, 2026, exclusive of broker fees and excise taxes. We repurchased 497,675 shares of our Class A common stock during the second quarter at an average cost of $19.98 per share. $45.7 million remained available under our $100 million stock repurchase program as of June 30, 2026. Cash and cash equivalents as of June 30, 2026 were $311.6 million, an increase of $0.9 million, or 0.3%, from $310.7 million in total cash as of June 30, 2025. Our balance sheet as of June 30, 2026 remains debt free. Inventory as of June 30, 2026 was $275.8 million, an increase of $54.7 million, or 25%, year-over-year, from the inventory balance of $221.0 million as of June 30, 2025. Additional trend information regarding Revolve Group's second quarter of 2026 financial results and operating metrics is available in the Q2 2026 Financial Highlights presentation available on our investor relations website: https://investors.revolve.com/events-and-presentations Results Since the End of the Second Quarter of 2026 Net sales in July 2026 increased by approximately 18% year-over-year. 2026 Business Outlook Based on information available to us as of August 4, 2026, we are providing the following guidance for the third quarter and full year ending December 31, 2026. Our outlook takes into account our assessment of the current macroeconomic environment and related cost pressures and potential headwinds to consumer spending, including, but not limited to, geopolitical uncertainty, tariffs, inflationary pressures, supply chain disruptions and foreign currency volatility. The gross margin outlook does not assume any additional IEEPA tariff refunds. Conference Call Information Revolve Group management will host a call today at 4:30 pm ET / 1:30 pm PT to discuss today's results in more detail. To participate, please dial (800) 715-9871 within the United States or (646) 307-1963 outside the United States approximately 10 minutes before the scheduled start of the call. The conference ID for the call is 2756104. The conference call will also be accessible, live via audio broadcast, on the Investor Relations section of the Revolve Group website at investors.revolve.com. A replay of the conference call will be available online at investors.revolve.com. In addition, an audio replay of the call will be available for one week following the call and can be accessed by dialing (800) 770-2030 within the United States or (609) 800-9909 outside the United States. The replay conference ID is 2756104. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our growth prospects, business initiatives and innovation, our owned brand expansion, our use of AI, our physical retail stores, our partnerships, and our outlook for the third quarter and full year of 2026. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to changing economic conditions and their impact on consumer demand and our business; the effects of tariffs and our efforts to mitigate such effects; demand for our products; the investment in long-term initiatives such as international expansion, development of owned brands, AI technology and our physical retail stores; the impact of AI and machine learning; supply chain challenges; inflationary pressures; wars and conflicts; other geopolitical tensions; our fluctuating operating results; seasonality in our business; elevated merchandise returns; our ability to acquire products on reasonable terms; our e-commerce business model; our ability to attract customers in a cost effective manner; our ability to source goods in a cost effective manner; the strength of our brand; competition; fraud; system interruptions; our ability to fulfill orders; the impact of public health crises on our business, operations and financial results; the effect of claims, lawsuits, government investigations, other legal or regulatory proceedings or commercial or contractual disputes; and other risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, or SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2025, and our subsequent Quarterly Reports on Form 10-Q, including for the quarter ended June 30, 2026, which we expect to file with the SEC on August 4, 2026. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof. Use of Non-GAAP Financial Measures and Other Operating Metrics To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: Adjusted EBITDA and free cash flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this release. We encourage reviewing the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items. Definitions of our non-GAAP financial measures and other operating metrics are presented below. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other income, net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense, certain transaction costs and certain non-routine items. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes an item that we do not consider to be indicative of our core operating performance. Free Cash Flow Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used in purchases of property and equipment, and purchases of rental product, net of proceeds from the sale of rental product. We view free cash flow as an important indicator of our liquidity because it measures the amount of cash we generate. Free cash flow also reflects changes in working capital. Active Customers We define an active customer as a unique customer account from which a purchase was made across our platform at least once in the preceding 12-month period. In any particular period, we determine our number of active customers by counting the total number of customers who have made at least one purchase in the preceding 12-month period, measured from the last date of such period. We view the number of active customers as a key indicator of our growth, the reach of our sites, the value proposition and consumer awareness of our brand, the continued use of our sites by our customers and their desire to purchase our products. Total Orders Placed We define total orders placed as the total number of orders placed by our customers, prior to product returns, across our platform in any given period. We view total orders placed as a key indicator of the velocity of our business and an indication of the desirability of our products and sites to our customers. Total orders placed, together with average order value, is an indicator of the net sales we expect to recognize in a given period. Average Order Value We define average order value as the sum of the total gross sales from our sites in a given period, prior to product returns, divided by the total orders placed in that period. We believe our high average order value demonstrates the premium nature of our product assortment. Average order value varies depending on the site through which we sell merchandise, the mix of product categories sold, the number of units in each order, the percentage of sales at full price, and for sales at less than full price, the level of markdowns. About Revolve Group, Inc. Revolve Group, Inc. (NYSE: RVLV) is the next-generation fashion retailer for Millennial and Generation Z consumers. As a trusted premium lifestyle brand and a go-to online source for discovery and inspiration, we deliver an engaging customer experience from a vast yet curated offering of apparel, footwear, accessories, beauty and home products. Our dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers and more than 1,600 emerging, established and owned brands. We were founded in 2003 by our co-CEOs, Michael Mente and Mike Karanikolas. We sell merchandise through two complementary segments, REVOLVE and FWRD, that leverage one platform. Through REVOLVE, we offer an assortment of premium apparel, footwear, accessories and beauty products from emerging, established and owned brands. Through FWRD, we offer an assortment of curated and elevated iconic and emerging luxury brands. For more information, visit www.revolve.com. Contacts: Investors: Erik Randerson, CFA 562.677.9513 [email protected] Media: Karla Otto [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/revolve-group-announces-second-quarter-2026-financial-results-302842702.html

Revolve Group (RVLV) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +30.00%. A quarter ago, it was expected that this online women's fashion retailer would post earnings of $0.18 per share when it actually produced earnings of $0.2, delivering a surprise of +11.11%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Revolve Group, which belongs to the Zacks Textile - Apparel industry, posted revenues of $347.41 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.24%. This compares to year-ago revenues of $308.97 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Revolve Group shares have lost about 13.8% since the beginning of the year versus the S&P 500's gain of 11%. While Revolve Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Revolve Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.23 on $323.34 million in revenues for the coming quarter and $0.85 on $1.36 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, PVH (PVH), has yet to report results for the quarter ended July 2026. This owner of the Calvin Klein and Tommy Hilfiger brands is expected to post quarterly earnings of $3.09 per share in its upcoming report, which represents a year-over-year change of +22.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PVH's revenues are expected to be $2.1 billion, down 3.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Whirlpool Corporation WHR reported a wider-than-expected ongoing loss and a sales miss for the second quarter of 2026, with both metrics deteriorating year over year. The company posted an ongoing loss of 21 cents per share for the second quarter of 2026, wider than the Zacks Consensus Estimate of a 20-cent loss. The result compared unfavorably with ongoing earnings of $1.34 per share a year ago. Whirlpool Corporation price-consensus-eps-surprise-chart | Whirlpool Corporation Quote Net sales declined 6.8% year over year to $3,517 million and missed the consensus mark of $3,602 million by 2.4%. Organic net sales fell 1.7% to $3,437 million, reflecting lower volumes and retailer inventory pressure, partly offset by pricing actions. Gross profit fell 27.5% year over year to $442 million. The gross margin contracted about 360 basis points to 12.6% as lower volumes and inflationary pressures weighed on profitability.Selling, general and administrative (SG&A) expenses declined 6.5% to $371 million. Ongoing EBIT plunged 69.1% to $62 million, while the ongoing EBIT margin narrowed 350 basis points to 1.8%. Tariffs, raw-material inflation and fuel costs remained key headwinds. GAAP net earnings available to common shareholders rose 14.2% to $75 million, aided by a $139 million gain on business disposals. Net sales for the MDA North America segment declined 1.5% year over year to $2,408 million. Excluding currency effects, sales also fell 1.5% due to lower volumes stemming from an industry decline, partly offset by favorable price/mix. Segment EBIT dropped 55.4% to $64 million from $144 million, while the EBIT margin contracted 320 basis points to 2.7%. The margin decline reflected lower volumes and higher tariff, raw-material and fuel costs, partly offset by favorable price/mix. Sequentially, net sales rose 8% and the EBIT margin improved 240 basis points, aided by previously announced pricing actions.Net sales from MDA Latin America increased 7.8% year over year to $868 million. Excluding currency impacts, however, sales declined 1.7% due to unfavorable price/mix in Brazil despite higher volumes. Segment EBIT fell 45.7% to $26 million from $48 million, and the EBIT margin contracted 300 basis points to 3%. The margin was pressured by unfavorable price/mix, partly offset by a favorable Brazil tax case-related gain. Whirlpool also announced price increases and structural cost actions aimed at restoring margins in Brazil.Net sales in SDA Global edged up 0.5% year over year to $202 million. Excluding currency effects, sales decreased 1.2% as lower retailer inventories more than offset strong sell-out trends. Segment EBIT declined 30.8% to $24 million from $35 million, while the EBIT margin narrowed 540 basis points to 11.9%. The margin performance reflected planned marketing investments, partly supported by new product launches and direct-to-consumer expansion. Underlying demand remained positive, supported by strong sell-out and market-share gains globally. Whirlpool ended the second quarter with cash and cash equivalents of $1,239 million, long-term debt of $6.8 billion and total stockholders’ equity of $3.9 billion. The company completed a $2 billion asset-based lending facility and issued $2 billion of secured bonds, clearing debt maturities until 2028.For the first six months of 2026, Whirlpool used $947 million in operating cash, compared with $702 million used a year earlier. Free cash outflow widened to $1,108 million from $856 million, while capital expenditures increased to $162 million from $154 million. For 2026, Whirlpool now expects net sales of approximately $15 billion and an ongoing EBIT margin of about 4% on the largest price increases. Net sales reflect nearly 1.5% growth compared with 2025 on like-for-like net sales of about $14.7 billion. Structural cost-reduction initiatives are expected to generate more than $150 million in savings, equivalent to approximately 100 basis points of margin expansion.The company lowered its GAAP earnings guidance to $2.25-$2.75 per share from $2.45-$2.95 and reduced ongoing earnings guidance to $2.50-$3.00 from $3.00-$3.50, reflecting a new interest-expense outlook. It expects a GAAP tax rate of about 20% and an adjusted tax rate of approximately 25%. Cash provided by operating activities is projected at roughly $700 million, while free cash flow is expected to exceed $300 million. Whirlpool also targets year-end net debt of less than $5 billion.The Zacks Rank #3 (Hold) company's shares have declined 27.6% in the past three months compared with the industry’s 23.5% fall. Image Source: Zacks Investment Research Duluth Holdings Inc. DLTH sells casual wear, workwear, outdoor apparel, and accessories for men and women in the United States. It offers shirts, pants, shorts, underwear, outerwear, footwear, accessories and hard goods. At present, DLTH sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for current fiscal-year sales and earnings implies a decline of 6.9% and 36.5%, respectively, from the year-ago reported figures. DLTH delivered a trailing four-quarter earnings surprise of 107.5%, on average.Revolve Group, Inc. RVLV operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. It currently carries a Zacks Rank of 2 (Buy).The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales implies growth of 10.6% from the year-ago figures. RVLV delivered a trailing four-quarter average earnings surprise of 52.1%.Vince Holding Corp. VNCE provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, VNCE carries a Zacks Rank of 2.The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 8.5% and 34.1%, respectively. VNCE has delivered a trailing four-quarter earnings surprise of 635.7%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Whirlpool Corporation (WHR) : Free Stock Analysis Report Vince Holding Corp. (VNCE) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research