The RealReal Inc. (REAL) Misses Q4 EPS by 8c, Sales Miss

The RealReal Inc. (NASDAQ: REAL) reported Q4 EPS of ($0.49), $0.08 worse than the analyst estimate of ($0.41). Revenue for the quarter came in at $84.6 million versus the consensus estimate of $94.06 million. Gross Merchandise Volume (GMV) was $301.2 million, a 235bps Q/Q improvement and a 1% Y/Y decrease.

“With improving trends in Q4, culminating in December GMV increasing 6% Y/Y, we exited the year with strong momentum. Q1 2021 GMV grew 14% Y/Y quarter to date through Feb. 19, 2021, so that momentum continues and we are optimistic about the year ahead. Last year, we embarked on strategic initiatives surrounding our neighborhood stores, vendor program and authentication center expansion that will enable us to emerge a stronger company,” said Julie Wainwright, founder and CEO of The RealReal.

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

GUIDANCE:

We anticipate Q1 GMV will be in the range of $301 million to $310 million, representing a 17% to 20% Y/Y growth rate.

For earnings history and earnings-related data on The RealReal Inc. (REAL) click here.

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