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Can Revolve's 23% International Sales Mix Expand Further Going Forward?

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Key Takeaways

  • RVLV's international net sales increased 16%, with growth across all regions and exceptional gains in Mexico.
  • International markets generated nearly 23% of net sales, the highest mix in the company's history.
  • Higher fuel, shipment surcharges and logistics costs, creating pressure despite strong overseas growth.

Revolve Group, Inc. (RVLV - Free Report) continued to expand its international business, with broad-based growth across regions, reflecting continued progress in the company’s international expansion. International net sales increased 16% year over year in the second quarter of 2026. Mexico remained a particularly strong contributor, delivering exceptional growth following the marketing and service enhancements discussed in the prior quarter. Overall, the company reported growth across all international regions during the quarter.

However, the company faced elevated logistics cost pressures during the second quarter, particularly in international markets affected by the evolving geopolitical environment. Variable fuel and other surcharges on international customer shipments increased meaningfully year over year, creating additional cost headwinds. These higher shipment-related costs added to the company’s cost pressures in the second quarter.

Despite these cost pressures, the company’s international business continued to show strong momentum in the second quarter, with the Middle East rebounding from a weak start to deliver strong double-digit growth. Management attributed part of this recovery to the company’s agility and its ability to capitalize on demand opportunities as competitors pulled back. International markets generated nearly 23% of total net sales during the quarter, representing the highest mix ever reported by the company. Despite this record contribution, management continues to see significant room for further expansion in an international market opportunity. They described the expansion as more than three times the size of the U.S. opportunity.

Overall, Revolve’s continued international growth and its ability to capitalize on opportunities across different regions highlight the expansion potential management sees outside the United States. Continued execution on international growth initiatives, including marketing and service enhancements, could support further expansion and increase the contribution of international markets over time.

The Zacks Rundown for RVLV

RVLV stock has risen 16% in the past three months compared with the industry’s 3.5% growth. The company currently carries a Zacks Rank #3 (Hold).

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From a valuation standpoint, RVLV trades at a forward price-to-earnings ratio of 22.53 compared with the industry’s average of 14.93.

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RVLV’s current and next fiscal-year earnings implies a rise of 1.2% and 23.5%, respectively, from the year-ago period.

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Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks have been discussed below:

Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.

Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.

Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2.

The Zacks Consensus Estimate for SGC’s current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 90.2%, on average.

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