Revolve Group Inc (RVLV.N): Focus Turning to '27

Revolve Group Inc (RVLV.N): Focus Turning to '27. RVLV delivered solid 3Q results with 20% y/y revenue growth and ~200K sequential customer adds. However, an October growth slowdown, tougher comps to come, and high investment question the FY27 algorithm. We cut our EBITDA estimates and remain EW; $25 PT. Questions arise on the FY27 algorithm: RVLV has outperformed significantly on topline growth through 2026, while margins have consistently underperformed as the company has leaned into investment. That looks like it may flip in 2027. After 2-y/y growth of ~25% from June through September, October decelerated to ~20%. If that holds, revenue growth would fall to single digits through the rest of 4Q and into FY27. There are reasons to believe that can accelerate if the investments RVLV made this year mature, but we think the market will need to see the re-accel to underwrite it. Margins this year have been weighed down by ~2pts from discretionary investments (Revolve LA, Grow Good, physic