Revolve Group Inc. executives haven’t gotten caught up in tariff concerns and the recent reveal of its June quarter results showed why.
“Even in such a dynamic environment in 2025 with wildfires, tariffs and macro uncertainty, in the first half of the year our revenue increased 10 percent, our adjusted EBITDA increased 25 percent and our free cash flow was more than 5x higher year over year,” co-founder and co-CEO Michael Mente told analysts on Tuesday.
Enough was said there, but executives offered more.
Tariffs are expected to bring a mid-single digit price increase from third-party brands to the company, which owns the Revolve and FWRD fashion retailers. The fourth quarter will see further increases from there, according to Mike Karanikolas, the company’s other co-founder and co-CEO.
While July showed consumers unfazed by the increases, Karanikolas said it’s “too early” to call what the longer-term reaction might be.
Still, Revolve Group has other aspects of its business that are helping offset any dampening.
By the numbers, it’s a growth story.
Net sales in the second quarter rose 9 percent from a year ago to $309 million. Net income fell 35 percent to $10 million, but that was partially due to the end of owning French couture label Alexandre Vauthier. During the quarter the company gave up its 80 percent stake in the French limited liability company that owned Alexandre Vauthier.
Revolve’s International Story
International sales, while still a fraction of those Stateside, jumped 17 percent to $67.3 million, compared with domestic net sales’ rise of 7 percent to $241.6 million.
Analysts on Tuesday questioned Revolve Group executives on the impact of anti-American sentiment on sales. Canada appears to be the main holdout. Even still, Karanikola said that’s lessened from the peak.
While most international regions grew in the quarter, sales in China were notable. Even as some brands struggle to revive sales in China, the Revolve namesake doubled its business there over the past two years.
The company installed a management team in the country, which helped drive that growth.
Revolve Festival et al.
Revolve’s successes tend to always tie back to the company’s marketing expertise.
Influencer marketing was what got the business off the ground and then some. It’s continued building upon what’s kept it ahead of the pack.
That helped the Revolve brand, the largest revenue driver, grow 9 percent to $268.4 million in the quarter.
Events such as Revolve Festival and Revolve in the Hamptons, along with apparel, beauty, men’s and home category expansion all helped drive brand awareness.
The company’s teams have continued to tweak online merchandising. Mente pointed to the Festival Shop curation on Revolve’s site, which saw sales triple in the first half of the year compared to a year ago.
Meanwhile, the momentum is also there in the company’s FWRD division, where sales increased in the quarter by 10 percent to $40.6 million. That’s a win considering the headwinds in the broader luxury market.
“At a time when some of the largest luxury retailers are delaying payments to luxury brands for merchandise received, FWRD continues to attract coveted luxury brands with new partners,” Mente said.
Phoebe Philo, Victoria Beckham Beauty, Ralph Lauren and the Skims x Roberto Cavalli collaboration are all recent launches at FWRD. An executive from what Mente described as an “iconic Italian luxury brand” is also in talks to have the label carried by the company, after visiting its Aspen brick-and-mortar store.
A Los Angeles location, the company’s second, is on track to open in the fourth quarter at The Grove as Revolve Group makes “significant progress developing our retail muscle,” Mente said.
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