Welcome to our dedicated page for The RealReal news (Ticker: REAL), a resource for investors and traders seeking the latest updates and insights on The RealReal stock.
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 has achieved significant sustainability milestones by becoming the first carbon-neutral resale company and paying out over $2 billion in commissions for 18+ million items sold. The company, which has over 21 million members, focuses on promoting the circular economy by encouraging the resale of luxury goods. Through its efforts, it has saved approximately 896 million liters of water and 18,732 metric tons of carbon. Initiatives to maintain carbon neutrality include environmental management systems, waste reduction targets, and renewable energy evaluations.
The RealReal (NASDAQ: REAL) has announced a donation of $205,000 to combat anti-Asian violence through legal assistance. The contribution includes $100,000 from The RealReal and $105,000 from partner organizations, aimed at supporting the Asian American Legal Defense and Education Fund (AALDEF). The funds will help AALDEF address the increasing demand for legal aid among victims of hate crimes within the Asian American and Pacific Islander community, reflecting a commitment to social justice and community support.
The RealReal (Nasdaq: REAL) launched its upcycling program, ReCollection, during Earth Month, transforming damaged luxury items into unique pieces. This initiative partners with renowned brands like Balenciaga and Stella McCartney, emphasizing sustainability and the circular economy. The collection includes over 50 items, priced between $195 and $2,450, with proceeds supporting One Tree Planted's reforestation efforts. The program builds on The RealReal's commitment to extending the life of luxury goods through resale and repairs, aiming to inspire conscious consumption.
The RealReal announced a private offering of $250 million in 1.00% Convertible Senior Notes due 2028. The notes will be convertible into cash or shares at an initial rate of 31.4465 shares per $1,000 principal amount, equating to an approximate conversion price of $31.80, a 32.5% premium over the March 3 closing price of $24.00. The offering is expected to close on March 8, 2021. Estimated net proceeds of $241.9 million will fund capped call transactions and other corporate purposes. The notes will not be redeemable prior to March 2025.
The RealReal, Inc. (Nasdaq: REAL) announced a private offering of $250 million in Convertible Senior Notes due 2028, potentially increasing to $287.5 million with an option for initial purchasers. The proceeds will be used for capped call transactions and general corporate purposes. The notes will be convertible into cash, shares, or a combination, and will rank equally with other unsecured debts. The offering is subject to market conditions, and there is no guarantee of completion. The securities will not be registered under the Securities Act and are solely for qualified institutional buyers.
The RealReal (Nasdaq: REAL) reported a 6% year-over-year increase in Gross Merchandise Volume (GMV) for December 2020, with Q1 2021 GMV showing a promising 14% growth. Total revenue for Q4 2020 was $84.6 million, a 10% decline year-over-year, driven by a 16% decrease in consignment and service revenue. Notably, new buyers surged 21% year-over-year. The company also plans to open approximately 10 neighborhood stores by Q2 2021 to enhance customer engagement. However, it ended the quarter with a net loss of $53 million.
The RealReal (Nasdaq: REAL) has announced significant changes to its leadership team, promoting Rati Levesque to President and appointing Karen Katz and Emma Grede to its board, achieving a 60% female representation. Katz, with over 30 years in luxury retail, and Grede, founder of Good American, will enhance the board's diversity and experience. These appointments are part of The RealReal's strategy to reflect its community and drive growth in the evolving resale market. The company, the largest online marketplace for authenticated luxury goods, emphasizes sustainable fashion through its rigorous authentication process.
The RealReal (Nasdaq: REAL) announced that Chief Financial Officer Matt Gustke will participate in three upcoming conferences. These include the Morgan Stanley Technology Conference on March 1, 2021, the Raymond James 2021 Institutional Investors Conference on March 3, 2021, and the BofA Securities 2021 Consumer and Retail Technology Conference on March 9, 2021. The presentations will be available via webcast on The RealReal's investor relations website and will be accessible for replay for a limited time after the live events.
The RealReal (Nasdaq: REAL) will announce its financial results for Q4 and the full year ending December 31, 2020, on February 22, 2021, after market close. A conference call is scheduled for 2:00 PM PT (5:00 PM ET) to discuss the results. Interested parties can join by calling (866) 996-5385 in the U.S. or (270) 215-9574 internationally, with a passcode of 1836039. The event will also be available via live webcast.
The RealReal is the largest online marketplace for authenticated, consigned luxury goods, emphasizing sustainability by supporting the circular economy.
The RealReal announced its 2021 Luxury Consignment Report, revealing significant trends in the luxury resale market. A growing number of consignors, particularly Gen Z and Millennials, increased participation to 35%. Investment pieces and vintage items showed rising resale values, with high-demand bags seeing prices up by 80%. Gucci and Rolex maintained strong positions, with Gucci leading in vintage resale value. Overall, the report emphasizes a shift toward sustainable fashion and the importance of consigning for financial gains in 2021.
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