The RealReal, the online marketplace for consigned luxury goods, has been dealing with coronavirus-induced hits to its business by going digital.
In its Q1 earnings report, The RealReal says it has been utilizing the power of virtual video meet-ups to perform its usual consignment duties, which remain of interest to buyers.
The report states that The RealReal has conducted “thousands” of personal consignment video calls with customers, helping them keep monetizing assets in their homes during the pandemic. The company said it plans to keep the virtual service going even past the pandemic.
The company’s earnings report states that The RealReal has been growing, with a 15 percent increase in gross market value to $257.6 million this year, a revenue increase of 11 percent, now sitting at $78.2 million, and gross profit rising 16 percent year-over-year to $49.2 million.
The company’s B2B vendor program, which solicits supply from other companies in need of distribution and demand, was reportedly “resilient” throughout the pandemic thus far.
The coronavirus, when it hit in mid-March and forced states to start shutting down operations en masse, forced The RealReal to scrap its previous financial outlook due to the dramatic decline in activity and uncertainty over what’s next.
The company said it was focused on reducing costs, including reducing advertising spending by two-thirds. In line with social distancing guidelines, The RealReal said it had limited operations in its warehouses. That had the effect of sending the GMV plummeting by 40 to 45 percent compared to 2019 levels.
CEO Julie Wainwright was optimistic about its chances, saying the showings for the company balance sheet, customer satisfaction and high rates of purchases boded well for the future and meant the company could bounce back easily when things began opening back up.
The GMV had bounced back to what the company expected by late April, said Wainwright.
The company has also made strides to be green, including saving 14,300 metric tons of carbon and 660 million liters of water.
The RealReal was also hit in early March with a lawsuit by a shareholder, alleging employees had not been properly trained in spotting fake items.
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