US luxury consignment platform The RealReal has reported widening net losses in the third quarter.
The San Francisco-based company’s net loss reached 43.3 million dollars in the three months to 30 September, compared to 25.3 million dollars a year earlier.
Total revenue decreased four percent to 78.1 million dollars, comprising a 7 percent decrease in consignment and service revenue to 64.4 million dollars, and an 11 percent increase in direct revenue to 13.6 million dollars.
Gross profit fell 5 percent to 49.8 million dollars.
Gross merchandise volume (GMV) decreased 3 percent to 245.4 million dollars.
“Improving trends in New York City and Los Angeles, momentum with virtual appointments and continued strength in The RealReal B2B vendor program improved our ability to source supply in Q3 and contributed to improving quarter over quarter GMV trends,” The RealReal CEO Julie Wainwright said in a statement.
The company said supply trends improved significantly quarter over quarter, with total supply units shipped to its e-commerce facilities increasing by around 32 percent, or 3 percent on a year-on-year basis. Excluding New York City and Los Angeles, the number of supply units shipped in Q3 increased 7 percent year-on-year.
On the demand side, The RealReal said traffic trends remained healthy in Q3 with sessions up 18 percent year-on-year, and the company’s four-day sell-through continued to trend at pre-Covid levels.
Wainwright continued: “We are laser-focused on making the operational changes and strategic investments that will position us to emerge from COVID a stronger, more agile company prepared to capitalize on the significant luxury resale market opportunity in front of us.”
Due to ongoing Covid-19 uncertainty, the company said it would not be providing a financial outlook.
Photo credit: The RealReal, Facebook