Revolve Group is quickening its pace for growth as it continues to nab share from struggling competitors.
The Cerritos-based company ended 2025 with net sales increasing 8 percent to $1.2 billion, driven by both its namesake business and the luxury FWRD division.
Net income increased 25 percent on account of the sales growth to $61.1 million, compared to $48.8 million in 2024.
Its playbook has changed very little.
Much like how the company started some 20 years ago by co-CEOs and co-founders Mike Karanikolas and Michael Mente, the company has learned to leverage technology with relevant marketing. In a landscape of tariff concerns, struggles among many luxury retailers and an always fickle consumer base, the company’s expansion playbook for 2026 is broad.
While Revolve made its mark as the digital-first Millennial brand, it’s already on to what the next generation of Revolve consumers want from the company. A big part of that is its testing of artificial intelligence internally with the hope of bringing AI chat to its shopping sites.
AI is already being used to transcribe customer service calls, automate invoice processing and tamp down on fraud.
Karanikolas told analysts on Tuesday during the company’s quarterly update this “an opportune time to invest in further building our brands” to help in “fueling our next phase of growth.”
On Luxury
While FWRD is significantly smaller than Revolve, it’s growing.
The luxury segment generated net sales last year of $171.6 million, notching an increase of 8 percent from 2024. That’s still small compared to Revolve’s over $1 billion in business in 2025, but the company is ramping its FWRD marketing efforts.
That’s in stark contrast to last month’s bankruptcy filing of Saks Global, which offered the most recent example of where FWRD and Revolve have opportunity to poach a customer base now in search of its next retailer.
“We are capitalizing on financially challenged competitors that have slashed spending out of necessity,” Mente said, referencing the Saks bankruptcy.
Last year, a personal shopping program resulted in 100 percent sales growth. FWRD’s also boosted its private client and shop-in-shop events with brands such as Fendi, Ralph Lauren, Miu Miu and Acne Studios suggesting traction among luxury brands looking for a new retailer to align with given many legacy retailers’ struggles.
How Physical Retail Helps
As Revolve Group focuses on brick-and-mortar expansion, the larger door count could help further sell itself to those same upscale brands.
Class A landlords have already been calling since the company opened its latest store at The Grove in Los Angeles. It now counts two stores, located in Aspen and L.A.
Mente said it’s not uncommon for lines to form outside the door of The Grove store during peak shopping times.
Since that Los Angeles store opening there’s been a “meaningful uptick in interest” in Revolve and FWRD from what Mente described as “tier one landlords in key markets that are attractive locations.”
Karanikolas said it’s possible another store could open this year, but it would depend on “timing” and other factors. When pressed for further color on what types of markets make the most sense moving forward, he described largely what Aspen and The Grove are: “smaller town[s] with a lot of wealth” or “premium shopping locations” to which he said there are “many, many across the nation.”
While numbers weren’t provided, The Grove store is seeing “encouraging early results,” Mente said.
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