Financial Data and Key Metrics Changes - The company reported net sales of $297 million, a year-over-year increase of 10% [32] - Operating income increased by 57% year-over-year, with adjusted EBITDA rising by 45% [8][36] - Cash and cash equivalents exceeded $300 million for the first time, increasing by $44 million or 17% in just three months [40][31] - The gross margin was 52%, a decrease of 30 basis points year-over-year, primarily due to a lower mix of net sales at full price and deeper markdowns [34] Business Line Data and Key Metrics Changes - REVOLVE segment net sales increased by 11% year-over-year, while FORWARD segment net sales increased by 3% [33] - The product return rate decreased by nearly three points year-over-year, contributing to operational efficiencies [10] - The mix of owned brand net sales as a percentage of REVOLVE segment net sales increased year-over-year for the first time in two and a half years [25] Market Data and Key Metrics Changes - Domestic net sales increased by 9% year-over-year, while international net sales increased by 12% [33] - Active customers increased by 6% year-over-year, reaching 2.7 million [33] - The company noted a shift in consumer behavior towards more accessible price points, impacting average order value [34][60] Company Strategy and Development Direction - The company is focused on long-term investments in AI technology, international expansion, and building owned brands [8][12] - The REVOLVE Festival was highlighted as a successful brand-building event, generating significant marketing impact and consumer engagement [21][24] - The company is exploring physical retail opportunities, with plans to open a permanent store in Los Angeles [26][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by geopolitical and macroeconomic uncertainties, particularly regarding tariffs [11] - The leadership team expressed confidence in navigating through current uncertainties, citing a strong track record during previous turbulent periods [12][46] - The company is moderating internal revenue growth expectations for the full year due to declining consumer confidence [48][76] Other Important Information - The company generated $45 million in operating cash flow in the first quarter, significantly strengthening its balance sheet [10][38] - The company has no debt and has increased its cash and cash equivalents balance fourfold over the last five years [40] - The company is actively working on tariff mitigation strategies, including diversifying manufacturing sources and optimizing logistics [44][45] Q&A Session Summary Question: Can you clarify the gross margin guidance related to tariffs? - Management confirmed that the low end of the gross margin guidance assumes elevated tariff rates with their best estimate of mitigation efforts [56][57] Question: How quickly can the company pivot to third-party sourced inventory? - Management indicated that while they can flex inventory sourcing, the focus remains on owned brand expansion, with diversification efforts expected to take longer [58][59] Question: Is the company seeing any impact on customer traffic and conversion trends due to tariffs? - Management noted a shift to more accessible price points is impacting average order value, reflecting consumer sentiment [60][61] Question: Are there plans to increase promotional activities to stimulate demand? - Management stated that while they are seeing a shift to more accessible price points, they are not changing their markdown strategy in response to market conditions [70][71] Question: What feedback is the company receiving from third-party brands regarding price increases? - Management reported that they are seeing some price increases from third-party brands but have not yet received significant customer pushback [79][80]

Financial Performance - Gross margin for Q1 2025 was 52.0%, slightly down from 52.3% in Q1 2024[90] - Adjusted EBITDA increased to $19,299,000 in Q1 2025 from $13,267,000 in Q1 2024, representing a growth of 45.5%[90] - Free cash flow rose to $42,804,000 in Q1 2025, compared to $36,656,000 in Q1 2024, an increase of 16.5%[90] - For the three months ended March 31, 2025, net sales increased by 9.7% to $296.7 million compared to $270.6 million in the same period in 2024[142] - Net income for the three months ended March 31, 2025, was $11.4 million, compared to $10.9 million in the same period in 2024[141] - For the three months ended March 31, 2025, the company reported income before income taxes of $15,581,000, an increase from $14,649,000 in the same period of 2024[150] Customer Metrics - Active customers reached 2,703,000 in Q1 2025, up from 2,551,000 in Q1 2024, marking a growth of 5.9%[90] - Total orders placed in Q1 2025 were 2,308,000, compared to 2,223,000 in Q1 2024, reflecting an increase of 3.8%[90] - Active customers increased during the period ended March 31, 2025, compared to the same period in 2024, driven by enhanced engagement and new customer acquisition[107] - Total orders placed increased in the three months ended March 31, 2025, compared to the same period in 2024, reflecting improved customer engagement[109] Sales and Revenue - The REVOLVE segment generated $254.4 million in net sales for the three months ended March 31, 2025, representing a 10.8% increase from $229.6 million in the same period of 2024[125] - Net sales in the REVOLVE segment rose by 10.8% to $254.4 million, while the FWRD segment saw a 3.3% increase to $42.4 million[143] - Net sales to customers in the United States accounted for 80.6% of total net sales, increasing by 9.2% to $239.2 million from $219.1 million[127] - Net sales to customers outside the United States increased by 11.7% to $57.5 million, representing 19.4% of total net sales[128] Cost and Expenses - Cost of sales increased by 10.3% to $142.4 million, representing 48.0% of net sales, up from 47.7% in the prior year[144] - Fulfillment expenses were relatively flat at $9.4 million, decreasing as a percentage of net sales to 3.2% from 3.5%[145] - Selling and distribution expenses increased by 3.1% to $50.0 million, accounting for 16.8% of net sales, down from 17.9%[146] - Marketing expenses rose by 2.5% to $42.4 million, representing 14.2% of net sales, down from 15.3%[148] - General and administrative expenses increased by 14.9% to $37.9 million, accounting for 12.8% of net sales, up from 12.2%[149] Tariffs and Manufacturing - Increased tariff rates on imported products, particularly from China, are expected to adversely impact gross margin in the near term[95] - The total tariff rate on goods imported from China reached 152.5%, which may increase costs and impact customer demand[113] - The company is diversifying manufacturing sources outside of China to mitigate the impact of heightened tariffs[114] - The merchandise mix may shift due to changes in customer demand and the impact of tariffs, potentially affecting gross margin[121] Cash Flow and Financing - Cash and cash equivalents as of March 31, 2025, were $300,831,000, up from $256,600,000 as of December 31, 2024[151] - Net cash provided by operating activities was $45,145,000 for the three months ended March 31, 2025, compared to $38,391,000 for the same period in 2024, reflecting an increase of 17.5%[158][160] - Net cash used in investing activities was $2,341,000 for the three months ended March 31, 2025, compared to $1,735,000 in 2024[162] - Net cash used in financing activities was $531,000 for the three months ended March 31, 2025, a significant decrease from $8,264,000 in the same period of 2024[164] - The company authorized a stock repurchase program of up to $100 million for its Class A common stock in August 2023, with no expiration date[157] - The line of credit provides up to $75 million in revolver borrowings, with no borrowings outstanding as of March 31, 2025[154] Operational Strategies - The company has expanded its international presence with limited investment, offering products on platforms like Tmall Global and Nykaa Fashion[88] - The logistics infrastructure supports free shipping and returns in the U.S., optimizing inventory allocation and reducing fulfillment costs[87] - The focus on emerging and owned brands minimizes assortment overlap with other retailers, enhancing marketing efficiency[83] - Investments in operations and infrastructure are expected to continue, focusing on inventory, fulfillment centers, and logistics to support growth[123] - The company continues to monitor inflation impacts and has implemented strategies to mitigate its effects, although these may adversely impact product demand[166] Challenges - The company faces challenges in customer acquisition and retention due to increased competition and changes in social media marketing dynamics[116] - Average order value decreased to $295 in Q1 2025 from $299 in Q1 2024[90] - Average order value decreased in the three months ended March 31, 2025, primarily due to a lower percentage of sales at full price[111]

Financial Data and Key Metrics Changes - The company reported net sales of $297 million, a year-over-year increase of 10% [29] - Operating income increased by 57% year-over-year, with adjusted EBITDA rising by 45% [6][34] - Cash and cash equivalents exceeded $300 million, increasing by $44 million or 17% in just three months [36] Business Line Data and Key Metrics Changes - REVOLVE segment net sales increased by 11% year-over-year, while FORWARD segment net sales grew by 3% [30] - The product return rate decreased by nearly three points year-over-year, contributing to operational efficiencies [9] Market Data and Key Metrics Changes - Domestic net sales increased by 9%, while international net sales rose by 12% year-over-year [30] - Active customers increased by 6% year-over-year, reaching 2.7 million [30] Company Strategy and Development Direction - The company is focusing on expanding brand awareness, growing the customer base, and enhancing connections with the next generation of consumers [11] - Plans for a permanent retail store in Los Angeles are underway, with construction ongoing and an expected opening in the fall [24][26] - The company is leveraging AI technology to improve customer service and enhance the shopping experience [17] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in navigating macroeconomic uncertainties and tariff challenges, citing a strong track record in previous turbulent times [10][43] - There is a noted shift in consumer behavior towards more accessible price points, impacting average order values [58][99] Other Important Information - The company is actively engaged in cost-sharing discussions with manufacturing partners to mitigate tariff impacts [41] - The REVOLVE Festival event significantly boosted brand awareness and marketing efficiency, with press impressions increasing by over 40% year-over-year [22] Q&A Session Summary Question: Can you clarify the gross margin guidance related to tariffs? - The low end of the gross margin guidance assumes elevated tariff rates with minimal mitigation efforts [53][55] Question: How quickly can the company pivot to third-party sourced inventory? - The company can flexibly adjust sourcing but is optimistic about owned brand expansion [56] Question: Is the company seeing any impact on customer traffic due to tariff news? - There is a shift to more accessible price points affecting average order values, but no significant pullback in traffic has been observed [58][99] Question: Are there plans to increase promotional activities to stimulate demand? - The company is not changing its markdown strategy in response to market conditions but will act based on inventory balance and customer needs [69] Question: What feedback is the company receiving from third-party brands regarding price increases? - The company is collaborating closely with third-party brands, and while some price increases are anticipated, there has been no significant customer pushback yet [77]

Financial Performance - Net sales increased by 10% year-over-year, from $270.6 million in Q1 2024 to $296.7 million in Q1 2025[11] - Adjusted EBITDA increased by 45% year-over-year, from $13.3 million in Q1 2024 to $19.3 million in Q1 2025[11] - Adjusted EBITDA margin increased by 160 basis points year-over-year, reaching 6.5% in Q1 2025[11] - Net income increased by 5% year-over-year, from $10.9 million in Q1 2024 to $11.4 million in Q1 2025, Q1 2024 included an insurance recovery equivalent to $2.1 million, net of tax[11] - Diluted EPS (GAAP) increased by 7% year-over-year, from $0.15 in Q1 2024 to $0.16 in Q1 2025, Q1 2024 EPS included an insurance recovery equivalent to $0.03 per share[25] Segment and Geographic Performance - REVOLVE net sales increased by 11% year-over-year, from $229.6 million in Q1 2024 to $254.4 million in Q1 2025[13] - FWRD net sales increased by 3% year-over-year, from $41.0 million in Q1 2024 to $42.3 million in Q1 2025[13] - U S net sales increased by 9% year-over-year, from $219.1 million in Q1 2024 to $239.2 million in Q1 2025[13] - International net sales increased by 12% year-over-year, from $51.4 million in Q1 2024 to $57.5 million in Q1 2025[13] Cash Flow and Balance Sheet - Free cash flow increased by 17% year-over-year, from $36.7 million in Q1 2024 to $42.8 million in Q1 2025[30] - Cash and cash equivalents increased by $44 million, or 17% quarter-over-quarter, reaching $300.8 million in Q1 2025[30]

Exhibit 99.1 Revolve Group Announces First Quarter 2025 Financial Results Los Angeles, CA – May 6, 2025 - Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the first quarter ended March 31, 2025. Co-Founder and Co-CEO Commentary "Our strong execution within a dynamic macro environment resulted in outstanding first quarter results, highlighted by double-digit top-line growth, 57% growth in operating income y ...

Core Insights - Revolve Group, Inc. reported strong first quarter results for 2025, achieving double-digit top-line growth and a 57% increase in operating income year-over-year, alongside $45 million in operating cash flow [2][3][5] Financial Performance - Net sales reached $296.7 million, a 10% increase from $270.6 million in Q1 2024 [3][5] - Gross profit was $154.3 million, reflecting a 9% year-over-year increase [3][5] - Net income for the quarter was $11.4 million, up 5% from $10.9 million in the same period last year [3][12] - Adjusted EBITDA increased by 45% to $19.3 million compared to $13.3 million in Q1 2024 [3][12] - Free cash flow was $42.8 million, a 17% increase from $36.7 million in Q1 2024 [3][12] Operational Metrics - Active customers grew to 2.7 million, a 6% increase year-over-year [4][5] - Total orders placed increased by 4% to 2,308 [4][5] - Average order value decreased slightly by 1% to $295 [4][5] Cost Structure - Fulfillment costs were $9.4 million, representing 3.2% of net sales, down from 3.5% in Q1 2024 [5][6] - Selling and distribution costs were $50.0 million, or 16.8% of net sales, improved from 17.9% in the previous year [5][6] - Marketing costs were $42.4 million, or 14.3% of net sales, down from 15.3% in Q1 2024 [12] Balance Sheet and Cash Flow - Cash and cash equivalents increased to $300.8 million, up 17% from $256.6 million at the end of 2024 [12][34] - Inventory as of March 31, 2025, was $213.7 million, a decrease of 7% from the previous quarter [12][34] Business Outlook - The company provided guidance for 2025, projecting gross margin between 50.0% and 52.0%, revised down from a previous estimate of 52.4% to 52.9% [11][13] - The outlook considers macroeconomic factors such as tariffs, inflation, and supply chain disruptions [10][11]