But the resale site is still losing money as it works to build scale.
In the second quarter ended June 30, The RealReal’s losses widened to $42.9 million from $26.9 million a year earlier as total revenues fell 20.5 percent to $57.4 million from $72.2 million. The value of the goods sold on the platform — the gross merchandise volume — fell 20 percent to $182.8 million.
Julie Wainwright, chief executive officer, said GMV trends have improved significantly since the first quarter, falling 19 percent in May from a year earlier, but dipping 8 percent in June and just 2 percent in July.
“Our GMV recovery prompted us to begin reinvesting in growth in Q2 earlier than previously expected,” Wainwright said. “While Q2 was challenging, the pandemic has been a catalyst for reinvention and innovation at The RealReal. With the normalization of our processing capacity and the evolution of our supply acquisition strategy, we are now laser-focused on returning to sustained growth.”
Investors wanted something more, though, and traded shares of the firm down 7.2 percent to $14 in after-hours trading.
The RealReal has boosted its access to product by instituting virtual appointments and working directly with brands.
The resale site pivoted to digital appointments in April helping consignors monetize styles in their home. All told, it conducted 25,000 virtual appointments in the quarter.
“We have never been more optimistic about our long-term opportunity,” Wainwright said. “We are confident that supply will ramp up over the coming months as we continue to lean into the digital experience, remove friction from the consignment process, invest in advertising and optimize our operations.”