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Revolve Group Builds on AI Technology to Drive Growth & Efficiency - The Globe and Mail

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Revolve Group, Inc. RVLV is expanding its use of artificial intelligence (AI) to sharpen pricing, optimize inventory and personalize shopping. Its proprietary technology and data infrastructure are helping teams respond to demand and make faster decisions. New applications in visual search and store analytics could further strengthen customer engagement as the company expands its physical retail presence. The benefits were evident in second-quarter 2026 gross margin, which rose to 56.6% from 54.1% a year earlier. Although tariff refunds accounted for most of the increase, margin improved approximately 90 basis points excluding that benefit. Management primarily attributed the underlying improvement to AI and data-driven adjustments to markdown algorithms. Net sales climbed 12% to $347.4 million, while trailing 12-month active customers increased 11% to 3.04 million. Product discovery represents another opportunity. On its second-quarter earnings call, Revolve Group outlined plans to test image-based search, enabling shoppers to upload photographs and find exact items when available or similar merchandise.

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