What Happened?
Shares of online fashion retailer Revolve (NASDAQ: RVLV) jumped 5.3% in the afternoon session after the company's luxury fashion division, FWRD, announced it was gaining market share and expanding its leadership globally. The positive development included the appointment of Rosie Huntington-Whiteley as Fashion Director. The announcement also highlighted FWRD's recent success, with third-quarter results showing the impact of its investments. These delivered a 37% year-over-year increase in gross profit dollars in the third quarter of 2025. Furthermore, a key part of this success was FWRD's personal shopping program, which delivered more than 100% sales growth year-over-year through the first nine months of 2025, signaling strong customer demand.
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What Is The Market Telling Us
Revolve’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 7.1% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Revolve is down 17.2% since the beginning of the year, and at $27.80 per share, it is trading 27.1% below its 52-week high of $38.16 from December 2024. Investors who bought $1,000 worth of Revolve’s shares 5 years ago would now be looking at an investment worth $1,142.
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