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RealReal Stock Sinks 18% Despite Positive Outlook on Sales -Breaking

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© Reuters.

By Liz Moyer

Investing.com TheRealReal Inc After reporting an unexpectedly large loss, shares of (NASDAQ:), fell 18% Wednesday to reach a 52-week high. 

Despite that, the company’s outlook sees rising prices that could make their way into luxury goods.

“As inflation has ramped and prices have increased in the primary (i.e. new goods) luxury market, we believe The RealReal is a demonstrated value option,” the company said in a shareholder letter. 

The average loss per share, including stock options expense, was 47 cents. That’s a difference of the 52 cents expected by Wall Street analysts.

The $147m figure beat all expectations and was $137m higher than the predicted $137m. This was 48% more than the previous year.

RealReal claimed that revenue growth was achieved despite the absence of staff due to Covid-19 in the first quarter. “We have since fully recovered to prior staffing levels” in its authentication centers, the company said. 

Gross merchandise value rose 31% from last year, to $428 million, with the highest sales in women’s apparel and shoes. The majority of that increase was due to increased sales.

Recurring buyers accounted for most sales during the quarter. Active buyers increased 21% to 828,000 in this period, compared with last year.

According to the retailer, its total company inventory was $73.7 million. This includes purchases made from vendors and returned goods as well as consigned items it purchased up front. RealReal added it would limit the amount of company-owned inventory in the future, “focusing more on our consigned business model.”

The company projected a gross merchandise value between $450 and $470 millions for the second quarter, as well as $2 billion to $2.1 trillion for the entire year. 

 

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