Revolve (RVLV) Q2 Earnings: What To Expect

Online fashion retailer Revolve Group (NASDAQ: RVLV) will be reporting earnings tomorrow afternoon. Here's what to expect.

Revolve met analysts' revenue expectations last quarter, reporting revenues of $270.6 million, down 3.2% year on year. It was a weaker quarter for the company, with slow revenue growth. It reported 2.55 million active buyers, up 5.2% year on year.

Is Revolve a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Revolve's revenue to grow 1.2% year on year to $277.1 million, a reversal from the 5.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Revolve has missed Wall Street's revenue estimates four times over the last two years.

Looking at Revolve's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wayfair's revenues decreased 1.7% year on year, missing analysts' expectations by 2%, and MercadoLibre reported revenues up 41.5%, topping estimates by 8.3%. Wayfair traded down 12.2% following the results while MercadoLibre was up 10.7%.

Read our full analysis of Wayfair's results here and MercadoLibre's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share prices down 4.9% on average over the last month. Revolve is up 23.4% during the same time and is heading into earnings with an average analyst price target of $20.8 (compared to the current share price of $18.7).

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