The RealReal continued its roller-coaster ride along Wall Street.
The luxury consignment shop raised about $320 million in its initial public offering in June, ending its first day on the market at $28.90, only to fall sharply in recent sessions as investors took a more skeptical look at online companies, sinking to $17. But the stock changed direction again, rising 11.7 percent to $18.99 in after-hours trading Tuesday as investors approved of first-quarter results, which showed stronger sales, although losses expanded to $26.9 million from $18.9 million a year earlier.
Julie Wainwright, founder and chief executive officer of The RealReal, said she was “thrilled” with the results.
“As we continue to unlock supply, invest in our technology platform, and instill trust in our marketplace, we are revolutionizing luxury resale and delivering tremendous value to our consignors and buyers,” Wainwright said.
The company’s revenues for the quarter ended June 30 shot up to $71 million from just $46.9 million a year earlier. That’s an increase of 51 percent.
Women’s and jewelry remained the two biggest categories, while men’s had the fastest growth in sneakers and streetwear.
The RealReal, which sells luxury clothing, handbags and accessories, began online in 2011. The company opened its first physical store in November 2017. It now has three brick-and-mortar doors, two in New York City and one in Los Angeles. Wainwright told analysts on Tuesday evening’s conference call that the company plans to open more stores — about two a year — for the next few years, focusing on the East and West Coasts.
The RealReal is also expected to reach $1 billion in gross merchandise value over the next few years. In April, the company also said it had joined the Fashion Industry Charter for Climate Action, a first for a resale site.
“We’re only scratching the surface in terms of resale,” Wainwright said. “We have lots of room for runway.”