The RealReal Provides Business Update

SAN FRANCISCO, June 09, 2020 (GLOBE NEWSWIRE) -- 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 has seen substantial recovery in its business over the course of the COVID-19 pandemic. From mid-March, when San Francisco Bay Area shelter-in-place directives began going into effect, through mid-April, Gross Merchandise Value (GMV) declined approximately 44% year over year (YoY). Since then, GMV trends have improved. April GMV declined approximately 33% YoY, and May GMV declined approximately 19% YoY. GMV declines continued moderating throughout May, with GMV declining 16% YoY from mid-May through the end of the month. These GMV improvements have continued into June, with GMV declining 11% YoY from June 1 through June 7. These growth rates compare with YoY GMV growth of approximately 30% prior to the shelter-in-place directives.

As previously disclosed, the company believes the primary limitation on GMV has been its ability to process supply under the shelter-in-place restrictions. Demand (as measured by four day sell-through) remained healthy in April and May, and traffic sessions remained positive for March, April and May on a YoY basis despite significant reductions in advertising spend.  

The combined impact of a return to higher staffing levels in its warehouses and efficiency benefits from investments in automation have increased the company’s capacity to process new supply at pre-COVID levels in terms of items per day. The RealReal is well-positioned to continue recovering as supply trends improve, subject to any new restrictions that may be placed on the company’s operations by local or state government authorities in the future. Supply units shipped to the company’s e-commerce facilities increased approximately 47% month over month in May, though supply units are still below pre-COVID levels. The company has conducted nearly 20,000 virtual appointments since launching the service in response to the pandemic, and interest in its vendor channel from business sellers has increased 10 times vs. pre-COVID levels. Together, virtual appointments and vendor interest have markedly improved the company’s ability to source supply.