THE REALREAL WITHDRAWS 2020 BUSINESS OUTLOOK DUE TO IMPACT OF COVID-19
March 17 2020 - 8:30AM
The RealReal (Nasdaq: REAL)—the world’s largest online marketplace
for authenticated, consigned luxury goods—today withdrew its
outlook for the first quarter and full year 2020 as a result of the
growing impact of the coronavirus (COVID-19) on its business.
Effective today, the company is closing its Brisbane, Calif.,
e-commerce center in response to the shelter in place directive
from the San Mateo County Health Department currently expected to
remain in place through April 7. The company is also suspending
consignment and shopping appointments in its San Francisco Luxury
Consignment Offices and flagship store, as well as shifting all Bay
Area White Glove in-home consignment to virtual appointments only.
Given the near-term uncertainty about the duration of this closure
and potential for the closure of our other facilities, we are
unable to quantify the near-term impact to our business.
“We are in unprecedented territory with the spread of
coronavirus. In a time with so much uncertainty, we want to
reassure you that we are taking every precaution to ensure the
safety of our customers, consignors and staff by following COVID-19
guidelines provided by public health organizations as well as
federal, state and local officials,” said Julie Wainwright, founder
and CEO of The RealReal. “While the magnitude of COVID-19’s
near-term impact remains fluid, we are confident in our leadership
position and our long-term strategy to capitalize on the large
market opportunity before us.”
About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for
authenticated, consigned luxury goods. With a rigorous
authentication process overseen by experts, The RealReal provides a
safe and reliable platform for consumers to buy and sell their
luxury items. We have 150+ in-house gemologists, horologists and
brand authenticators who inspect thousands of items each day. As a
sustainable company, we give new life to pieces by hundreds of
brands, from Gucci to Cartier, supporting the circular economy. We
make consigning effortless with free in-home pickup, drop-off
service and direct shipping for individual consignors and estates.
At our stores in LA, NYC and San Francisco, customers can shop,
consign, and meet with our experts. At our ten Luxury Consignment
Offices, four of which are in our retail stores, our expert staff
provides free valuations.
Investor Relations Contact:Paul BieberHead of
Investor Relationspaul.bieber@therealreal.com
Press Contact:Erin SantyHead of
Communicationspr@therealreal.com
Forward Looking Statements This press release
contains forward-looking statements within the meaning of federal
and state securities laws. Forward-looking statements generally
relate to future events or our future financial or operating
performance. In some cases, you can identify forward-looking
statements by terminology such as “may,” “will,” “should,” “could,”
“expect,” “plan,” anticipate,” “believe,” “estimate,” “predict,”
“intend,” “potential,” “would,” “continue,” “ongoing” or the
negative of these terms or other comparable terminology.
Forward-looking statements in this release include, but are not
limited to statements about future operating results, including our
financial outlook and guidance for the first quarter of 2020 and
full year 2020, our ability to drive revenue growth, our ability to
drive operating leverage, our ability to add capacity, capabilities
and automation to our operations and our strategies, plans,
commitments, objectives and goals. Forward-looking statements are
based on current expectations of future events. Investors should
realize that if underlying assumptions prove inaccurate or that
known or unknown risks or uncertainties materialize, actual results
could vary materially from our expectations and projections.
Investors are therefore cautioned not to place undue reliance on
any forward-looking statements. These forward-looking statements
speak only as of the date of this press release and, except as
required by applicable law, we undertake no obligation to publicly
update or revise any forward-looking statements contained herein,
whether as a result of any new information, future events or
otherwise. Our future results may be different from those described
in our forward-looking statements for a variety of reasons,
including any failure to generate a supply of consigned goods,
pricing pressure on the consignment market resulting from
discounting in the market for new goods, failure to efficiently and
effectively operate our merchandising and fulfillment operations
and other reasons. A list and description of risks, uncertainties
and other factors that could cause or contribute to differences in
our results can be found in our filings with the Securities and
Exchange Commission (“SEC”), including our prospectus filed
pursuant to Rule 424(b) under the Securities Act of 1933, as
amended, on June 28, 2019, our Quarterly Report on Form 10-Q for
the quarters ended June 30, 2019 and September 30, 2019, and in our
Annual Report on Form 10- K for the fiscal year ended December 31,
2019 that was filed with the SEC on March 11, 2020. We qualify all
of our forward-looking statements by these cautionary
statements.
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