Luxury consignment platform The RealReal has reported widening losses in the second quarter of the year despite strong sales ahead of 2019 levels.
For the three months to June 30, the San Francisco-based company reported a net loss of 70.72 million dollars compared to a loss of 42.99 million dollars a year earlier. That included a charge of approximately 11 million dollars that was recorded as an accrued legal settlement.
Revenue ahead of 2019 levels
The loss was posted despite revenue of 104.9 million dollars, 83 percent higher than a year ago and 46 percent above pre-pandemic 2019 levels.
Gross merchandise value also grew strongly to 350 million dollars, 91 percent higher than a year ago and 53 percent higher than two years ago.
Founder and CEO Julie Wainwright said she was pleased with the quarter’s strong growth and believes “the strength of the current trends in the business will continue for the balance of this year and into next year”.
“In addition to our GMV growth and improved gross profit per order, the efficiency of our operations and marketing continue to improve - all key elements of our path to profitability,” Wainwright said in a statement.
She added that the company’s retail stores “continue to perform very well, particularly in driving new consignor acquisition and supply”.
She said following the expansion of the company’s neighborhood store footprint, it now plans to pause its retail rollout “to optimize performance and gather data to inform our future rollout strategy”.