Luxury retailer, The RealReal, has unveiled its ambitious financial targets for the year 2025. The New York-based online resale platform is confident in achieving positive adjusted earnings for the full year 2024 and has set its sights on even greater goals for the coming years. The company’s strategic plan, known as ‘Vision 2025’, includes aims to achieve a gross merchandise value (GMV) of over $5 billion and total revenues exceeding $1.5 billion. Furthermore, The RealReal hopes to attain an adjusted EBITDA of over $100 million by 2025.

Robert Julian, the Chief Financial Officer of The RealReal, expressed his confidence in the company’s goals, stating, “We are committed to achieving positive adjusted EBITDA for the full year 2024, based on robust top-line growth, excellent operational performance, and effective cost management.” Julian went on to say, “Our Vision 2025 for The RealReal encompasses a gross merchandise value of $5+ billion, total revenue of $1.5+ billion, and positive adjusted EBITDA of $100+ million.”

In 2021, The RealReal reported a net loss of $236 million, compared to $176 million in 2020. The adjusted EBITDA for the year resulted in a loss of $126.9 million. Despite these losses, the company remains confident in its future prospects. In its recent earnings update in February, The RealReal projected a GMV for 2022 within the range of $2 billion to $2.1 billion, with the adjusted EBITDA expected to narrow to a loss range of $100 to $80 million.

The RealReal is committed to strengthening its position in the luxury resale market, which has experienced notable growth in recent years. The company provides a platform for buying and selling authenticated luxury items, including clothing, accessories, and fine jewelry. With its focus on sustainability and circular fashion, The RealReal has established a trusted marketplace for buyers and sellers to engage in secondhand luxury shopping experiences.

By setting these ambitious financial targets for 2025, The RealReal aims to sustain its growth trajectory and further consolidate its leadership position in the luxury resale industry. Through a strong emphasis on operational excellence and strategic management, the company is determined to achieve positive financial results and generate value for its stakeholders. With the increasing demand for sustainable fashion, The RealReal is well-positioned to capitalize on this trend and drive its future success.

Useful link:
1. NY Times: The RealReal’s Business Model
2. Business of Fashion: Inside The RealReal IPO