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Item 8.01 Other Events.
On June 2, 2021, The RealReal, Inc. issued a press release providing a business update in accordance with the U.S. Securities and Exchange Commission’s disclosure guidance with respect to the ongoing COVID-19 pandemic and in advance of its participation at the 41st Annual Piper Sandler Consumer Marketplace Conference on June 3, 2021. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
|Item 9.01.|| |
Financial Statements and Exhibits.
|99.1||The RealReal Provides Busines Update|
|104||Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document).|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|The RealReal, Inc.|
|Date: June 2, 2021||By:|
|Chief Legal Officer and Secretary|
THE REALREAL PROVIDES BUSINESS UPDATE
SAN FRANCISCO, June 2, 2021 The RealReal (Nasdaq: REAL)the worlds largest online marketplace for authenticated, resale luxury goodstoday provided a business update in advance of its participation at the 41st Annual Piper Sandler Consumer Marketplace Conference. Gross merchandise volume (GMV) quarter to date through May 31, 2021, was approximately $239 million, an increase of 106% Y/Y and 53% compared to the same period in 2019. In addition, average order value (AOV) quarter to date through May 31, 2021, was approximately $520, an increase of 26% Y/Y and 13% compared to the same period in 2019.
Our GMV growth rate quarter to date reflects the strong momentum we are experiencing coming out of COVID, highlighted by accelerating growth year over year versus the equivalent period in 2019. Encouraging early results in our neighborhood stores, growing contributions from a return to in-home consignments and strong resale market trends are all contributing to our performance. As we build on our recent momentum, we remain laser focused on driving scale and operating efficiency gains as we march toward profitability, said Julie Wainwright, founder and CEO of The RealReal.
The COVID-19 pandemic continues to change consumer and business behavior in ways that are difficult to predict. The company believes that disclosing monthly GMV and AOV will provide additional transparency regarding the effects of the COVID-19 pandemic on its business. Consistent with SEC guidance regarding the impacts of the COVID-19 pandemic, the company intends to provide monthly GMV and AOV through the end of 2021.
The following table represents GMV and AOV growth rates for April 2021, May 2021 and Q2 2021 Quarter to Date through May 31, as compared to 2020 and 2019:
|2021 vs 2020||2021 vs 2019|
The information in this press release will be discussed at the 41st Annual Piper Sandler Consumer Marketplace Conference webcast on June 3, 2021, and reflects preliminary information available as of this date. This webcast can be accessed on The RealReals investor relations page of its website at https://investor.therealreal.com/news-events/events. The RealReal expects to release financial results for the second quarter ended June 30, 2021, in early August.
About The RealReal, Inc.
The RealReal is the worlds largest online marketplace for authenticated, resale luxury goods, with more than 20 million members. With a rigorous authentication process overseen by experts, The RealReal provides a safe and reliable platform for consumers to buy and sell their luxury items. We have hundreds of in-house gemologists, horologists and brand authenticators who inspect thousands of items each day. As a sustainable company, we give new life to pieces by thousands of brands across numerous categoriesincluding womens and mens fashion, fine jewelry and watches, art and homein support of the circular economy. We make selling effortless with free virtual appointments, in-home pickup, drop-off and direct shipping. We do all of the work for consignors, including authenticating, using AI and machine learning to determine optimal pricing, photographing and listing their items, as well as handling shipping and customer service. At our 16 retail locations, including our 11 shoppable stores, customers can sell, meet with our experts and receive free valuations.
Investor Relations Contact:
Head of Investor Relations and Capital Markets
Head of Communications
Forward Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of The RealReal that are based on the companys current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as may, will, should, could, expect, plan, anticipate, believe, estimate, predict, intend, potential, continue, ongoing or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating results, including the amounts of our operating expense and capital expenditure reductions and our strategies, plans, commitments, objectives and goals, in particular in the context of the impacts of the COVID-19 pandemic and the recent social unrest. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, the impact of the COVID-19 pandemic on our operations, any failure to generate a supply of consigned goods, pricing pressure on the consignment market resulting from discounting in the market for new goods, failure to efficiently and effectively operate our merchandising and fulfillment operations and other reasons.
More information about factors that could affect the companys operating results is included under the captions Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations in the companys most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting the companys Investor Relations website at https://investor.therealreal.com or the SECs website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.