Shares of Revolve Group, LLC (RVLV) jumped 6.11% in after-hours trading on Tuesday, following the release of the company's impressive third-quarter 2025 financial results. The fashion e-commerce retailer significantly outperformed earnings expectations, despite a slight miss on revenue.
Revolve reported quarterly earnings of $0.29 per share, more than doubling the analyst consensus estimate of $0.12. This represents a substantial 93.33% increase from the $0.15 per share reported in the same period last year. While the company's quarterly sales of $295.631 million fell slightly short of the estimated $297.923 million, it still marked a 4.41% year-over-year increase.
Investors were particularly encouraged by Revolve's improved profitability metrics. The company's gross profit surged 11.5% to $161.5 million, with gross margin expanding to 54.6% from 51.2% in the prior year. Net income nearly doubled to $21.2 million, while adjusted EBITDA rose 45% to $25.3 million, significantly exceeding the $13.9 million estimate. The strong bottom-line performance, coupled with positive sales growth and margin expansion, likely fueled the after-hours stock rally as investors responded favorably to Revolve's ability to drive profitability in a challenging retail environment.
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