The RealReal Provides Holiday Update
December 02 2020 - 9:00AM
The RealReal (Nasdaq: REAL)—the world’s largest online marketplace
for authenticated, consigned luxury goods—today provided a business
update in accordance with the SEC’s disclosure guidance with
respect to the ongoing COVID-19 pandemic.
The RealReal’s business recovery continued in November,
highlighted by record monthly new and repeat buyers, an
approximately 10% Y/Y increase in 5 day holiday period order
volume, and an approximately 3% Y/Y increase in order volume. These
improving underlying trends were partially offset by supply
headwinds in the Fine Jewelry and Watch (FJW) category, which
negatively impacted category gross merchandise volume (GMV) mix and
average selling prices in November. As a result of the category mix
shift, November GMV decreased approximately 3% Y/Y, an improvement
versus the 5% Y/Y decline in October. For the 5 day holiday
weekend, GMV declined by approximately 2% Y/Y.
Other November business highlights included:
- New buyers achieved a monthly record and increased
approximately 24% Y/Y;
- Retail and Luxury Consignment Office (LCO) supply units shipped
momentum continued and accelerated to approximately 51% Y/Y growth
versus 48% Y/Y in October;
- Vendor supply units shipped increased approximately 121% Y/Y;
and
- Palo Alto store units shipped during its first 10 days exceeded
New York Madison Avenue store units shipped in its first 10
days.
“We continue to make progress on our business recovery and were
especially pleased with the record number of new and repeat buyers
in November, the 24% Y/Y growth of new buyers in November, and the
order volume momentum during the holiday shopping weekend,” said
Julie Wainwright, founder and CEO of The RealReal. “While COVID-19
continues to present challenges to our supply acquisition,
especially in the FJW category, we are optimistic that category mix
will normalize as we emerge from the pandemic. We remain focused on
making the necessary strategic investments to drive the business
forward during the pandemic and to position us for sustained,
healthy growth in the years to come.”
The following table represents GMV trends for each month
beginning January 2020 through November 2020, with February growth
normalized for an extra day:
|
|
January |
February |
March |
April |
May |
June |
July |
August |
Sept. |
Oct. |
Nov. |
Y/Y Growth |
|
28% |
30% |
-15% |
-33% |
-19% |
-8% |
-2% |
-6% |
-1% |
-5% |
-3% |
The market environment remains very fluid, and The RealReal will
continue to closely monitor the development of the COVID-19
pandemic; federal, state and local operating restrictions; and
changes in consignor and buyer activity on its platform. The
company expects to continue to adjust its operating plans, and its
actual results could differ materially from those reflected in this
press release.
The information in this press release will be discussed on the
Credit Suisse Technology Conference webcast later today and
reflects preliminary information available as of this date. You can
access this webcast on The RealReal’s investor relations page of
its website at
https://investor.therealreal.com/news-events/events.
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, virtual appointments and
direct shipping for individual consignors and estates. At our
stores in Chicago, Los Angeles, New York City, Palo Alto and San
Francisco, customers can shop, consign, and meet with our experts.
At our 11 Luxury Consignment Offices, six 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 StatementsThis press release
contains forward-looking statements relating to, among other
things, the future performance of The RealReal that are based on
the company's current expectations, forecasts and assumptions and
involve risks and uncertainties. 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,” “continue,” “ongoing”
or the negative of these terms or other comparable terminology.
These statements include, but are not limited to, progress on the
recovery of the business, future normalization of category mix and
plans for strategic investments, in particular in the context of
the impacts of the COVID-19 pandemic. Actual results could differ
materially from those predicted or implied and reported results
should not be considered as an indication of future performance.
Other factors that could cause or contribute to such differences
include, but are not limited to, the impact of the COVID-19
pandemic and social unrest on our operations, 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.
More information about factors that could affect the company's
operating results is included under the captions “Risk Factors” and
“Management's Discussion and Analysis of Financial Condition and
Results of Operations” in the company's most recent Annual Report
on Form 10-K and subsequent quarterly reports on Form 10-Q, copies
of which may be obtained by visiting the company's Investor
Relations website at https://investor.therealreal.com or the
SEC's website at www.sec.gov. Undue reliance should not be placed
on the forward-looking statements in this press release, which are
based on information available to the company on the date hereof.
The company assumes no obligation to update such
statements.
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