San Francisco-based fashion consignment marketplace, The RealReal, has reported a net loss of $43.3 million, or $0.49 per share, for the third quarter. This represents an increase compared to the net loss of $25.3 million, or $0.30 per share, during the same period last year. Despite this setback, the company’s total revenue for the quarter was $78.1 million, although it did see a slight decrease of 4% from the $81.5 million reported in the previous year.

Breaking down the revenue further, it is evident that consignment and service revenue totaled $64.4 million, showing a 7% year-over-year decline. On the other hand, direct revenue experienced an 11% increase to $13.6 million. In terms of Gross Merchandise Value (GMV), there was a 3% decrease compared to the previous year, amounting to $245.4 million. However, The RealReal did see a promising 17% sequential increase from the previous quarter.

Despite these mixed results, Julie Wainwright, the CEO of The RealReal, remains optimistic about the future of the company. She believes that The RealReal is well-positioned to capitalize on the flourishing luxury resale market. In fact, she recently announced a partnership with Gucci, one of the leading luxury brands, which further strengthens the company’s position in the industry. Additionally, The RealReal has expanded its physical presence by opening its largest brick-and-mortar store in Chicago. This new location joins the existing stores in New York City, Los Angeles, and San Francisco, alongside 10 consignment offices.

In conclusion, The RealReal’s financial performance for the third quarter has shown a net loss and a decrease in revenue. Nevertheless, the company is not deterred and continues to push forward with confidence. With strategic partnerships, like the one with Gucci, and the expansion of physical stores, The RealReal aims to solidify its position as a leader in the luxury resale market.

Useful links:
1. The RealReal Official Website
2. The RealReal IPO Consideration