The RealReal, a prominent online luxury resale platform, has recently disclosed impressive financial results for the third quarter of this year. The company experienced a surge in gross merchandise value (GMV) and managed to narrow its losses amidst a challenging economic landscape. The RealReal reported that its quarterly GMV reached $441 million, representing a significant 20% increase compared to the same period in 2021. Moreover, the company’s total revenue for the quarter also rose by 20% to $143 million.

The RealReal has also witnessed a growth in its customer base, with the number of active buyers in the past 12 months increasing by 23% to reach an impressive 950,000. Additionally, the platform recorded 952,000 orders during the third quarter, marking a 26% increase. These figures demonstrate the company’s ability to attract and engage new customers while fostering continued loyalty among existing buyers.

Despite the overall positive performance, there was a slight decline in the average order value of 5%, settling at $463. The primary reason for this decrease can be attributed to a shift in consumer demand towards more affordable ready-to-wear items, leading to a decrease in average selling prices. Nevertheless, The RealReal highlighted the stability of GMV from repeat buyers, which remained at an encouraging 84%.

In terms of financials, The RealReal showcased its commitment to improving profitability as it narrowed its net income loss to $43.7 million for the quarter. This is a substantial improvement compared to the previous year’s loss of $57.2 million, indicating the company’s efforts to enhance its financial performance and operational efficiency.

Robert Julian, co-interim CEO and chief financial officer of The RealReal, expressed his optimism regarding the company’s performance. He highlighted the strong demand observed for ready-to-wear items, handbags, men’s clothing, and branded fine jewelry. Julian also emphasized the increase in both new buyers and members, showcasing the platform’s ability to attract a diverse range of luxury shoppers. Looking ahead, The RealReal aims to achieve profitability on an adjusted EBITDA basis by 2024 and is committed to reaching its Vision 2025 adjusted EBITDA target through top-line growth and cost leverage.

Furthermore, the positive earnings update follows The RealReal’s recent strategic partnership with Jimmy Choo, a renowned global luxury accessories brand. This collaboration allows Jimmy Choo’s clients to resell their items through The RealReal for the first time ever. This exciting partnership is expected to further enhance the platform’s offerings, broaden its appeal, and attract even more luxury shoppers.

Sources:
1. The RealReal Q3 2021 Earnings Report: [link](insert link)
2. The RealReal Partners with Jimmy Choo: [link](insert link)