Revolve Group, Inc.’s RVLV growing active customer base continues to reinforce the strength of its brand and customer engagement strategy. In the second quarter of 2026, trailing 12-month active customers increased 11% year over year to 3.04 million, marking the company’s highest customer growth rate in nearly three years. Revolve added 115,000 active customers during the quarter, its largest quarterly increase in four years, while total orders rose 11% to 2.7 million.
The strong customer momentum reflects healthy acquisition and engagement trends. Management attributed the performance to record new customer additions, stronger participation from existing shoppers and continued investments in brand building. High-profile marketing events, including REVOLVE Festival, Stagecoach and international brand activations, generated hundreds of millions of press and social media impressions, helping drive record new customer acquisition during the second quarter.
Customer quality continues to improve. While average order value remained stable at $299 compared with $300 a year ago, management noted that it would have exceeded $300 excluding lower-priced Grow-Good beauty product orders. At the same time, product return rates declined year over year for the second consecutive quarter, supported by a favorable merchandise mix and customer-friendly initiatives aimed at reducing returns. These trends point to improving customer economics and healthier merchandising execution.
Technology and merchandising initiatives are further strengthening customer engagement. Investments in AI, site experience and category expansion are helping improve the shopping experience while supporting customer retention and conversion. Management believes these initiatives are contributing to stronger engagement across both new and existing customers.
Customer momentum remains encouraging, with July net sales increasing approximately 18% year over year. Supported by continued investments in marketing, technology and customer experience, Revolve remains confident in achieving double-digit revenue growth for fiscal 2026 while further expanding its active customer base.
RVLV’s Price Performance, Valuation & Estimates
Shares of Revolve Group have gained 30.3% over the past three months compared with the industry’s 14.8% growth.
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From a valuation standpoint, RVLV trades at a forward price-to-sales ratio of 1.19X, below the industry’s average of 2.46X.
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The Zacks Consensus Estimate for Revolve Group’s 2026 earnings implies a year-over-year decline of 3.5%, while the same for 2027 indicates an uptick of 28.7%. Estimates for 2026 and 2027 have been revised downward and upward by 1 cent and 4 cents, respectively, over the past seven days.
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Revolve Group currently carries a Zacks Rank #3 (Hold).
Key Picks
Abercrombie & Fitch Co. ANF operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales suggests growth of 6.1% and 4.9%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 8.1%.
American Eagle Outfitters Inc. AEO is a specialty retailer of casual apparel, accessories and footwear for men and women. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests growth of 17.3% and 8.8%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%.
Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It also carries a Zacks Rank #2.
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.
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Revolve Group, Inc. (RVLV): Free Stock Analysis Report
Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report
Designer Brands Inc. (DBI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).