The RealReal’s Stock Volatile After Q3 Earnings Report

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REALREAL ($NASDAQ:REAL): The RealReal‘s stock traded volatilely after its Q3 earnings report showed lighter losses but slower sales. The e-commerce company posted an adjusted EPS loss of $0.38 in the third quarter alongside $143M in revenue. While the company’s losses were narrower than expected, sales growth came in below expectations. The RealReal is one of the leading luxury e-commerce companies. It focuses on selling authenticated luxury goods, including fashion, home, and art. The company has been growing rapidly in recent years, but it is still unprofitable. The RealReal’s stock has been volatile in recent months as investors have debated the company’s long-term prospects. The report showed that The RealReal is still losing money, but the losses are narrowing.

However, sales growth is slowing, which is a concern. The RealReal’s stock will likely remain volatile in the near future as investors continue to try to assess the company’s long-term prospects.

Earnings

The company sells pre-owned luxury goods, including clothing, jewelry, watches, art, and home décor. The company reported total revenue of $565.1 million, a 20.8% increase from the same period last year.

However, the company also reported a net loss of $220.0 million. Compared to the previous year, The RealReal‘s total revenue has grown from $299.9 million to $565.1 million in the last three years. However, the company has also been reporting net losses in each of those years.

Stock Price

There is mostly negative media exposure surrounding the company right now. On Tuesday, their stock opened at $1.4 and closed at $1.2, which is a 11.9% plunge from the previous closing price of $1.4. It is yet to be seen how this will affect the company in the long run.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on REALREAL are made simple by VI app. Based on VI Risk Rating, REALREAL is a medium risk investment in terms of financial and business aspects. VI App has detected 2 risk warnings in balance sheet, cashflow statement. Register on vi.app to check it out.

VI Peers

The RealReal Inc is a luxury consignment company that sells pre-owned designer items. The company competes with PChome Online Inc, Tapestry Inc, and Carvana Co. The RealReal Inc has a competitive advantage because it is the only luxury consignment company that is publicly traded. The company also has a competitive advantage because it has a brick-and-mortar store in addition to its online presence.

– PChome Online Inc ($TPEX:8044)

PChome Online Inc is a Taiwanese company that provides an online marketplace for consumers in Taiwan. The company has a market cap of 5.88B as of 2022 and a Return on Equity of 3.34%. PChome Online Inc operates an online marketplace that sells a wide variety of merchandise, including books, electronics, and home appliances. The company also provides a range of services, such as online payment and shipping.

– Tapestry Inc ($NYSE:TPR)

Tapestry, Inc., is an American luxury fashion holding company based in New York City. It was founded in 2016 as a result of the merger of Coach, Inc. and Kate Spade & Company. The company operates several major brands in the luxury fashion market, including Coach, Kate Spade, Stuart Weitzman, and Tapestry Collection.

Tapestry’s market capitalization is $7.57 billion as of 2022. The company’s return on equity is 28.67%. Tapestry is a luxury fashion holding company that operates several major brands, including Coach, Kate Spade, Stuart Weitzman, and Tapestry Collection.

– Carvana Co ($NYSE:CVNA)

Carvana Co is a company that operates an e-commerce platform for selling used cars. The company has a market cap of 1.94B as of 2022 and a return on equity of -183.76%. Carvana Co’s market cap is lower than the average for companies in the same industry, and its ROE is significantly negative. The company’s business model is not sustainable in the long term, and it is likely that Carvana Co will eventually go bankrupt.

Summary

If you’re looking for a volatile stock, The RealReal may be one to consider. After their Q3 earnings report, the stock saw a sharp decline. However, as of right now, the stock is starting to rebound. With all the media exposure, it’s hard to tell where the stock will go next.