© Reuters.
By Liz Moyer
Investing.com — Online retailer TheRealReal Inc (NASDAQ:) shares sank 18% on Wednesday to a new 52-week low a day after reporting a wider than expected loss.
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 adjusted loss per share was 47 cents, which includes stock options expenses, compared to the 54 cent loss per share expected by Wall Street analysts.
did beat expectations, however, at $147 million versus the expected $137 million. The number was up 48% from the same time last year.
RealReal said the growth in revenue came despite staff absences because of Covid-19 during the early part of the 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. That number was mostly sales, with some of it attributed to an increase in the average order value.
Repeat buyers made up most of the sales in the quarter, and active buyers rose 828,000, up 21% from last year.
The retailer said its company-owned inventory totaled $73.7 million, including purchases from vendors, returned items and consigned goods that it bought up front. RealReal added it would limit the amount of company-owned inventory in the future, “focusing more on our consigned business model.”
It projected gross merchandise value of $450 million to $470 million for the second quarter and $2 billion to $2.1 billion for the year.
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