Revolve Group, Inc. has laid out its gross margin targets for the fiscal year ending December 31, 2025. The company aims for a gross margin between 52.4% and 52.9%, striving to enhance profitability through strategic efforts, Marketchameleon.com reported.
A significant part of Revolve's strategy includes the expansion of its owned brands, which generally yield higher margins than third-party brands, according to Marketscreener.com. The company is also tackling tariff impacts by diversifying its supply chain. By 2025, it will source only 14% of its products from China, a sharp decline from 25% in 2018, as noted by Ainvest.com. Additionally, Revolve has managed to offset tariff costs through price adjustments, supported by a strong brand and loyal customer base.
Revolve is committed to improving efficiencies through technological investments, enhancing search engine optimization, and reducing return rates, all contributing to better logistics cost management. These measures are part of a comprehensive plan to boost margins and effectively handle external challenges.