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The RealReal, Inc. (symbol: REAL) is the world's largest online marketplace for authenticated, resale luxury goods. Founded by e-commerce veteran Julie Wainwright, the company offers a premier luxury resale store experience by curating, evaluating, and authenticating high-end designer fashion, fine jewelry, watches, and art. With a portfolio that includes brands such as Chanel, Hermès, Manolo Blahnik, and Cartier, The RealReal ensures every item is genuine, eliminating the uncertainty of purchasing luxury goods online.
The RealReal operates on a consignment model, allowing individuals to sell their luxury possessions with minimal effort. The process involves free virtual appointments, in-home pickups, drop-offs, and direct shipping. The company handles all steps from authentication, pricing, and photographing, to listing, shipping, and customer service. With over 35 million members and a team of hundreds of in-house gemologists, horologists, and brand authenticators, The RealReal inspects thousands of items daily, supporting a circular economy by giving new life to luxury items.
In 2023, The RealReal generated $1.7 billion in gross merchandise volume (GMV). The company continues to refine its business model, focusing on the higher-margin consignment segment. This strategic shift resulted in significant improvements, including a higher take rate, better gross margin rates, and positive Adjusted EBITDA by the end of 2023. The RealReal's strong financial performance has placed it on track to achieve positive Adjusted EBITDA on a full-year basis in 2024.
Recent notable achievements include partnerships with brands like Gucci, Stella McCartney, and Burberry, along with collaborations such as the Manhattan Vintage Show in January 2024. These initiatives highlight The RealReal's commitment to sustainability and expanding the vintage luxury market.
The company also engages in strategic debt exchange transactions to strengthen its financial position, such as the recent exchange that reduced its indebtedness by over $17 million, creating capital structure flexibility for future growth.
The RealReal’s forward-looking strategy includes leveraging advanced technologies like AI and machine learning for optimal pricing, enhancing user experience, and maintaining rigorous authentication standards. The company continuously updates its financial guidance and remains transparent with its investors through regular earnings releases and conference calls.
The RealReal (Nasdaq: REAL) announced it will release its third-quarter financial results on November 8, 2022, after the market closes. A conference call will follow at 2:00 PM PT (5:00 PM ET) to discuss the results. Investors can access the call via a provided link. The RealReal operates as the world’s largest authenticated resale luxury goods marketplace, boasting over 28 million members and employing a rigorous authentication process to ensure quality. The company promotes sustainability through its operations, facilitating a circular economy.
The RealReal has expanded its collectibles category by offering six rare Magic: The Gathering trading cards, including the astonishing 1993 Beta Black Lotus, valued at $750,000. The total assortment is valued at $845,000 and is available for purchase on their marketplace. This collection is particularly unique as all six cards are banned in modern tournaments, making them highly sought after. The collectibles category has seen significant growth, with search demand increasing 42% in 2022 and overall sales up 72%.
The RealReal has launched a new partnership with luxury brand Jimmy Choo to enhance awareness of the circular economy and facilitate the resale of luxury goods. Starting October 6, Jimmy Choo clients can consign their items through The RealReal, which provides a full-service experience including item authentication and listing. First-time consignors will receive a complimentary styling session. This collaboration aims to promote sustainability in fashion and aligns with The RealReal's commitment to environmental responsibility.
The RealReal (Nasdaq: REAL) released its 2022 Luxury Resale Report, highlighting significant growth in customer engagement and awareness of the resale market. The report noted a 27% increase in familiarity with resale and a 23% growth in its member base, adding 5.3 million new shoppers. Notable trends include an 78% increase in sales for collectibles and a 439% surge in demand for vintage clothing. The company emphasizes the emotional and environmental benefits of resale as consumers adapt to economic uncertainties.
The RealReal (Nasdaq: REAL) reported its Q2 2022 financial results, showcasing a 30% increase in Gross Merchandise Value (GMV) to $454 million and a 47% rise in total revenue to $154 million year-over-year. Despite these positive metrics, the company experienced a net loss of $(53.2) million, equating to (34.4)% of total revenue. Adjusted EBITDA improved to $(28.8) million from $(32.9) million a year earlier. The firm is navigating challenges related to sales labor shortages and has revised its full-year guidance downward. The leadership transition following CEO Julie Wainwright's departure was also highlighted.
The RealReal (Nasdaq: REAL) hosted a bipartisan congressional briefing on August 2, 2022, titled "Fashion and the Environment – How to Achieve a Circular Future." The session addressed the environmental impact of fast fashion and the push for a circular economy. Key speakers included Senator Tom Carper and Representative Frank Pallone, emphasizing the urgent need for sustainability in the fashion industry. Notably, the textile sector contributes to 11.3 million tons of clothing in U.S. landfills annually. The briefing highlighted the significant role of reuse and sustainable business models in combating climate change.
The RealReal has announced a partnership with Beckett Collectibles to provide expedited grading services specifically for its consignors. This deal aims to enhance the recently launched Collectibles category, which has seen a 48% increase in consignments in 2022. Services include expedited grading within 7-10 days, discounted rates of $25 per item, and potential earnings of up to 85% on final sales for consignors. The collaboration underscores both companies' commitment to quality and innovation in the collectibles market.
The RealReal (Nasdaq: REAL) announced it will release its second-quarter financial results for the period ending June 30, 2022, after market close on August 9, 2022. The company will host a conference call at 2:00 PM Pacific Time to discuss the results, accessible via U.S. and international dialing. The archived webcast will be available shortly after the call. As the largest online marketplace for authenticated resale luxury goods, The RealReal has over 27 million members and emphasizes a sustainable approach in supporting the circular economy.
The RealReal announced the appointment of Rati Sahi Levesque and Robert Julian as Co-Interim Chief Executive Officers following the resignation of founder Julie Wainwright on June 7, 2022. The Board will engage an executive search firm to find a permanent CEO while Wainwright will serve as an advisor until the end of 2022. Levesque, with a background in operations and merchandising, and Julian, with extensive financial management experience, are tasked with leading the company during this transition. The RealReal aims to continue its growth and execute its Vision 2025.
The RealReal (Nasdaq: REAL) reported a strong Q1 2022, with Gross Merchandise Value (GMV) up 31% year-over-year, reaching $428 million. Total revenue jumped 48% to $147 million. Despite ongoing COVID-related challenges, the company noted robust demand for luxury resale items. However, the net loss expanded to $57 million, slightly surpassing last year's loss. The company confirmed its full-year 2022 guidance, projecting GMV between $2,000 million and $2,100 million. Adjusted EBITDA for Q2 is forecasted to be between $(33) million and $(29) million.
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