Revolve (RVLV) Stock Forecast & Price Target

Revolve Group Inc has demonstrated robust growth in net sales, with a mid-single-digit year-over-year increase in October, complemented by significant improvements in gross margins, reaching 56.2% for REVOLVE and 44.9% for FWRD. The company also reported an acceleration in both revenues per active customer and a 6% increase in active customers over the first two quarters of 2025, indicating strong retention and attraction strategies. Structural improvements in margins, driven by a proprietary markdown algorithm and a higher proportion of full-price sales, further bolster Revolve's positive financial outlook.

Revolve Group Inc. faces several challenges that lead to a negative outlook for its stock. The dependence on marketing expenses to drive traffic, coupled with increased competition that may elevate these costs, poses significant risks to profitability. Additionally, the company's reliance on supply chains from mainland China and seasonal sales skewed towards large events increases vulnerability to disruptions, which could adversely affect sales and overall performance.