Revolve Group Q2 Sales Rise 9% While Net Income Drops 35%

Revolve Group reported a strong second quarter for fiscal 2025, with net sales rising 9% year-over-year to $309 million, driven by growth in both its Revolve and FWRD segments and international sales increasing 17%. Gross profit improved slightly to $167.1 million with a gross margin of 54.1%, supported by a higher mix of owned brand sales. Despite operational gains, net income dropped 35% to $10 million due primarily to tax-related charges, foreign exchange losses, and a non-cash charge from a subsidiary disposal. Adjusted EBITDA increased 12% to $22.9 million, reflecting improved efficiency in fulfillment and distribution costs. The company highlighted a 6% increase in active customers and raised its outlook for gross margins, while maintaining a debt-free balance sheet and strong cash position. Leadership emphasized continued investments in AI, new brands, and retail expansion amid a volatile macroeconomic environment, with analysts maintaining a generally positive outlook despite the profit dip.