Luxury consignment platform The RealReal has reported a 10 percent drop in revenue for the fourth quarter of the year.

For the three months to 31 December 2020, the San Francisco-based company’s revenue fell to 84.6 million dollars.

Its consignment and service revenue fell 16 percent to 69.1 million dollars, while direct revenue increased 38 percent to 15.5 million dollars.

Gross merchandise volume (GMV) was 301.2 million dollars, a 235bps Q/Q improvement and a 1 percent year-on-year decrease.

The company’s net loss widened to 53 million dollars from 21.4 million dollars a year earlier.

“With improving trends in Q4, culminating in December GMV increasing 6 percent Y/Y, we exited the year with strong momentum. Q1 2021 GMV grew 14 percent Y/Y quarter to date through Feb. 19, 2021, so that momentum continues and we are optimistic about the year ahead,” said founder and CEO Julie Wainwright in a statement.

For the full year, revenue fell 6 percent to 298.3 million dollars, while net loss widened to 177.5 million dollars compared to 96.7 million dollars a year earlier.

“We exited 2020 with our marketplace back to GMV growth, supply momentum increasing and widespread vaccine distribution hopefully around the corner,” Wainwright continued.

“Growth is a powerful driver of profitability as it enables us to realize efficiencies in our operations, leverage our fixed expenses, and negotiate better rates with our service providers.

“We remain focused on executing our growth recovery plans and have accelerated the timeline for opening our new Arizona authentication center to support our next phase of growth. We will continue building on the strong momentum of the past several months to position us to profitably capitalize on the large luxury resale opportunity ahead.”

Photo: The RealReal, Facebook