RealReal stock reeling after revenue miss, downbeat outlook prompts downgrade
Shares of RealReal Inc. were down 6.1% toward a record-low close in afternoon trading Wednesday, after the luxury goods consignment company reported third-quarter revenue that missed expectations and provided a downbeat outlook for the current quarter. The company reported late Tuesday net losses that narrowed to $47.3 million, or 49 cents a share, from $57.2 million, or 62 cents a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss of 38 cents beat the FactSet loss consensus of 43 cents. Revenue grew 20.1% to $142.7 million, but missed the FactSet consensus of $142.7 million, as gross merchandise volume (GMV) jumped 20% to $441 million but was below expectations of $447 million. For the fourth quarter, the company expects revenue of $145 million to $165 million and GMV of $480 million to $510 million, compared with the FactSet consensus as of Oct. 31 for sales of $174.8 million and for GMC of $543.6 million. Raymond James analyst Rick Patel followed by downgrading the stock to market perform from outperform, citing a "winding road to profitability with lower visibility." The stock, which was headed for its lowest close since going public in June 2019, has plummeted 62.3% over the past three months while the S&P 500 has shed 8.6%.
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