In the recent quarter, RealReal reported a decline in revenue as the gross merchandise value fell. However, the luxury consignment retailer is optimistic about growth prospects in 2024.
Financial Performance
- The company's loss narrowed to $21.7 million, or 21 cents per share, compared to a loss of $38.6 million, or 39 cents per share, in the same period last year.
- Excluding one-time items, the adjusted loss per share was 7 cents, falling short of analysts' expectations of 29 cents per share.
- Revenue decreased by 10% to $143.4 million, slightly missing the company's fourth-quarter revenue guidance of $135 million to $145 million.
- Gross merchandise value dropped by 9% from the previous year to $451 million but increased from $408 million as of September 30.
Future Outlook
- RealReal anticipates first-quarter revenue between $135 million and $145 million and full-year revenue in the range of $580 million to $605 million.
- The company projects a gross merchandise value of $1.80 billion to $1.88 billion by the end of 2024, up from $1.73 billion in 2023.
Strategic Changes
- In response to last year's restructuring, which included store closures and workforce reduction, RealReal is focusing on its consignment business and high-value merchandise.
- Under the leadership of CEO John Koryl, CFO Ajay Gopal, and board chair Karen Katz, the company aims to leverage its strong brand recognition and technological capabilities for profitable growth in 2024.
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