The RealReal Inc. (REAL) stock prices were down by 0.73% as of the market closing on August 9th, 2021. This brought the price per share down to USD$16.23 at the end of the trading day. Subsequent after-hours trading saw the stock fall by 6.10%, bringing it down to USD$15.24.
REAL Stock’s Snowballing Growth
The second quarter of fiscal 2021 saw REAL stock report strong growth in light of a strong market environment. The company intends to carry on through into the new fiscal year. The company reported an improvement in the efficiency of its operations and marketing. Combined with GMV growth and a higher gross profit per order, the company is on track to further profitability.
Resumption of Offerings
REAL stock executed a variety of key initiatives over the second quarter of 2021 in an effort to support efficient growth. The company resumed at-home concierge appointments. The level of overall units per appointment exceeded pre-Covid levels. At-home concierge appointments ended up accounting for 38% of the total units in June 2021.
Executing REAL Stock’s Strategy
Supply levels also increased with the expansion of the company’s brick and mortar stores. Retail stores ended up generating almost 30% of the total new consignors in Q2. The company added new stores in neighborhoods in Austin, Dallas, Atlanta, as well as Marin County. As a result, the start of the third quarter of 2021 will see the company operating nine stores. The upcoming few months are expected to see the company open an additional one or two stores. With the strength of its retail stores, REAL stock finds it market footprint significantly expanded. As a result, the company plans to pause its retail rollout. This is to facilitate the optimization of performance and to gather data. This data will inform the company’s future rollout strategy.
Strong Financial Growth
GMV for the quarter came out to USD$350 million, representing a 91% year-over-year increase. The Q2 2021 numbers were 53% higher than the numbers reported in the 2019 quarter. Total revenue was reported at USD$104.9 million, representing an 83% year-over-year increase. Q2 2021 total revenue was 46% higher than reports from Q2 2019.
Future Outlook for REAL Stock
Armed with the massive success of its financial reports, REAL stock is poised to capitalize on its momentum to continue its trajectory of success. The company is keen to prepare itself for the return of the global economy to pre-pandemic levels. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal. This, in turn, will facilitate significant and sustained increases in shareholder value.
