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RealReal widens quarterly loss, sales fall 10%

Shares of RealReal Inc. fell in the extended session Monday after the e-commerce retailer of secondhand luxury goods reported a wider quarterly loss and said that the pandemic has “temporarily disrupted” its path to profitability.

RealReal
REAL,
+1.38%

said it lost $53 million, or 60 cents a share, in the fourth quarter, compared with a loss of $23 million, or 25 cents a share, in the year-ago period. Adjusted for one-time items, the company lost 49 cents a share.

Sales fell to $84.6 million from $93.7 million, the company said.

Analysts polled by FactSet had expected a GAAP loss of 45 cents a share on sales of $93.3 million.

“To describe 2020 as a challenging year is an understatement,” the company said in its letter to shareholders. “We believe that as we come out of COVID, the tailwinds that have driven the outperformance of many e-commerce companies will slow. In contrast, a return to normalcy could drive an acceleration of growth in our marketplace.”

Citing “limited near-term visibility,” the company did not provide an outlook, but said that so far in the quarter it expects gross merchandise value in a range between $301 million and $310 million, representing a 17% to 20% year-on-year growth rate.

First-quarter profit per order will likely be flat. “COVID has temporarily disrupted our path to profitability,” the company said.

The stock has more than doubled (up 112.9%) over the past three months through Monday, while the S&P 500 index
SPX,
-0.77%

has gained 8.4%.

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