Revolve Group Stocks Rise 10% on Strong Q3 Results and Positive Outlook

NEW YORK - Shares of online fashion retailer Revolve Group Inc (NYSE:RVLV) rose 10% in after-hours trading on Tuesday following third-quarter results that exceeded analyst expectations and provided a positive outlook. The company reported adjusted earnings per share of $0.15, surpassing the consensus estimate of $0.10. Revenue came in at $283.15 million, exceeding expectations of $270.87 million and representing a 10% year-over-year increase.

Revolve's strong performance was supported by double-digit revenue growth and significant expansion in profitability. Net income increased 238% to $10.8 million compared to $3.2 million in the same quarter last year. Adjusted EBITDA rose 85% year-over-year to reach $17.5 million.

Co-founder and co-CEO Mike Karanikolas stated, "In the third quarter, we achieved outstanding results highlighted by double-digit revenue growth, significant expansion in net income, and an 85% increase in Adjusted EBITDA year-over-year."

The company reported continued momentum in October, with net sales increasing in the low double digits year-over-year. Revolve also provided positive guidance for the fourth quarter and full year 2024.

The number of active customers grew 5% year-over-year to 2.63 million, while the total number of orders increased by 3% to 2.2 million. The average order value slightly rose to $303.

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