The RealReal posts 10% decline in revenue
San Francisco-based consignment marketplace The RealReal announced Q4 revenue of $84.6 million on Monday, down 10% from $93.7 million in the prior-year period, despite sequential improvements in gross merchandise volume (GMV) and a quarterly record in new buyers, which increased 21%.
For the fourth quarter ended December 31, 2020, the digital-first company reported consignment and service revenue of $69.1 million, a 16% decline from $82.5 million, while direct revenue rose 38%, from $11.2 million to $15.5 million.
GMV for the quarter totaled $301.2 million, representing a 235bps improvement quarter over quarter, and a 1% year-over-year decrease.
The company’s quarterly net loss came to $53.0 million, or $0.60 per share, compared to a loss of $21.4 million, or $0.25 per share, in the same period in the previous year.
“With improving trends in Q4, culminating in December GMV increasing 6% Y/Y, we exited the year with strong momentum,” said The RealReal founder and CEO Julie Wainwright in a release. “Q1 2021 GMV grew 14% Y/Y quarter to date through Feb. 19, 2021, so that momentum continues and we are optimistic about the year ahead.”
“Last year, we embarked on strategic initiatives surrounding our neighborhood stores, vendor program and authentication center expansion that will enable us to emerge a stronger company,” she added.
In the fourth quarter, The RealReal continued its strategy of opening smaller neighborhood stores with the launch of a location in Palo Alto, California. Since the start of Q1, the company has also opened locations in Brooklyn, New York, and Newport Beach, California.
The RealReal intends to open around 10 neighborhood stores by the end of the second quarter.
Full-year revenue at the company was $298.3 million, down 6% from $318.0 million in the previous year, as a 4% increase in direct revenue, which totaled $52.6 million, partially offset a decline of 8% in consignment and service revenue, which came to $245.6 million.
Annual net loss totaled $177.5 million, or $2.03 per share, compared to a loss of $96.5 million, or $2.11 per share, in the previous year.
Looking to the future, The RealReal expects that its GMV will be in the range of $301 million to $310 million, representing a year-over-year increase of 17% to 20%.
Copyright © 2022 FashionNetwork.com All rights reserved.