The company has always said that would change — eventually — but now it has a date.
Chief financial officer Robert Julian said the company’s adjusted earnings before interest, taxes, depreciation and amortization would be “positive for full-year 2024, based on continued top-line growth, variable cost productivity and fixed cost management.”
More details will come next month, when the company lays out its “Vision 2025” strategic plan in an investor day presentation.
It’s a big moment for the company, which has helped blaze the resale movement in fashion, but still hasn’t been able to really turn all the excitement in the category into bottom-line returns.
The RealReal’s net losses widened to $52.2 million in the fourth quarter from $50.8 million a year earlier. Revenues for the three months ended Dec. 31 shot up 67.1 percent to $145.1 million from $86.8 million a year ago.
For all of 2021, losses widened to $236.1 million from $175.8 million in 2020. And revenues increased 55.9 percent to $467.7 million from $299.9 million in 2020. Gross merchandise volume tallied $1.5 billion last year.
Julie Wainwright, founder, chief executive officer and chairperson, told analysts on a conference call: “We are encouraged by our ability to continue to grow the business at a high rate while also effectively managing operating costs. Throughout 2021, we continue to expand our use of proprietary technology in our operations, specifically in our authentication center suite of operational efficiency through innovative technologies, including our proprietary diamond measurement equipment and machine learning and AI algorithm.”
And as the company has sharpened its own operations, the consumer world has settled some.
“As the impact of COVID[-19] recedes, our business is becoming more predictable again,” Wainwright said.
She said the forecast for profitability — at least on an adjusted EBITDA basis — was based on three main assumptions: annual top-line growth at least 30 percent; improved variable cost productivity, and the company’s ability to control its fixed costs and make the best use of its prior investments in technology and stores.
RealReal has its target set, now the luxury retail world and consumer needs to cooperate.
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