The RealReal revenues roar forward 48%, profitability falls
The RealReal announced on Tuesday total sales for the first quarter increased 48%, on the back of strong gross merchandise value (GMV) growth, as the online luxury resale platform remained in the red for another quarter.
The San Francisco-based company said total sales reached $147 million for the first quarter ending March 31, while GMV gained 31% to $428 million.
The RealReal said trailing 12 months active buyers reached 828,000, an increase of 21% compared to the same period in 2021, while order numbers reached 878,000, an increase of 27%.
Average order value (AOV)was $487, an increase of 3%. Likewise, higher AOV was driven by a year-over-year increase in units per transaction partially offset by decreased average selling prices driven by a normalization of category mix coming out of Covid-19.
Finally, GMV from repeat buyers was 85% compared to 84% in the first quarter of 2021
Despite the sales boost, The Real Real recorded a net loss of $57 million, compared to $56 million in the same period in 2021.
“We are pleased with our financial results for the first quarter of 2022, which exceeded our expectations on both the top- and bottom-line. The strong growth is particularly noteworthy given the Covid-related staff absences in our authentication centers early in the year, which negatively impacted the time for processing and launching items on our website. During the first quarter, we also continued to deliver significant operating expense leverage on both our fixed and variable expenses,” said Julie Wainwright, founder and CEO of The RealReal.
“We continue to see strong demand in our business despite recent geopolitical events and uncertainty surrounding macroeconomic trends. In fact, 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 offering unique and highly coveted items in our online marketplace. We believe we are well positioned for a strong year," added Wainwright.
Looking ahead, the company said it expects second quarter GMV to sit between $450 - $470 million, while total revenues are forecast to fall between $150 - $160 million.
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