The RealReal narrows quarterly losses, GMV up 20%
The RealReal announced on Tuesday GMV for the third quarter surged 20%, as the online luxury resale platform narrowed earnings losses for the three months ending September 30.
The New York-based company said quarterly GMV (gross merchandise value) rose to $441 million, compared to the same quarter in 2021. Likewise, total revenue for the quarter reached $143 million, an increase of 20%, compared to the same period last year.
Trailing 12 months active buyers reached 950,000, an increase of 23% compared to the same period in 2021, and orders reached 952,000 in the third quarter, an increase of 26%.
Average order value was $463, a decrease of 5%, following a year-over-year decrease in average selling prices, driven by a shift in demand from high value items to more ready-to-wear items, partially offset by higher units per transaction, the company said.
Meanwhile, GMV from repeat buyers was 84% which was stable year-over-year.
The luxury marketplace also narrowed losses during quarter to a net income loss of $43.7 million, compared to a net loss of $57.2 million, last year.
“During the third quarter, both GMV and total revenue grew 20% year-over-year. For the third quarter in a row, compared to the prior year, we narrowed our Adjusted EBITDA loss and improved Adjusted EBITDA margin, despite a more challenging business environment," said Robert Julian, co-interim CEO and chief financial officer of The RealReal.
"We continued to see strong demand in our business in the third quarter, especially for ready-to-wear, handbags, men’s, and branded fine jewelry. We also saw strong trends in new buyers and new members. We continue to project that we are on track to achieve Adjusted EBITDA profitability on a full year basis in 2024 and our Vision 2025 Adjusted EBITDA target, assuming top-line growth, variable cost productivity and fixed cost leverage.”
The earnings update follows the announcement in late October global luxury accessories brand Jimmy Choo will for the first time ever offer resale to Jimmy Choo clients through a new partnership with The RealReal.
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